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ETF Comparison

SPHD vs VYM: Which Is the Better Pick in 2026?

A head-to-head comparison of Invesco S&P 500 High Dividend Low Volatility ETF and Vanguard High Dividend Yield Index Fund ETF Shares covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Best for

  • SPHDInvestors who want higher current income (4.84% vs 2.35% for VYM).
  • VYMInvestors who want simple, diversified core exposure in one low-cost fund.

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricSPHDVYM
Full nameInvesco S&P 500 High Dividend Low Volatility ETFVanguard High Dividend Yield Index Fund ETF Shares
IssuerInvescoVanguard
Last Close$53.28 as of August 14, 2026$166.52 as of August 14, 2026
Distribution yield4.84%2.35%
Distribution Safety Score™ 9195
Expense ratio0.30%0.06%
AUM$3.43B$83.4B
Distribution frequencyMonthlyQuarterly
Underlying indexS&P 500 Low Volatility High Dividend IndexFTSE High Dividend Yield Index
ObjectiveSeeks monthly income by tracking the S&P 500 Low Volatility High Dividend Index, investing at least 90% of total assets in the 50 least volatile high-yielding constituents of the S&P 500.Seeks to track the performance of the FTSE High Dividend Yield Index, which offers exposure to dividend-paying large-cap companies that exhibit value characteristics within the U.S. equity market. The index includes stocks with a history of paying above-average dividends.
Asset classEquityEquity
Inception date10/18/201211/10/2006
Beta0.450.68
Last dividend$0.2147$0.9800
Ex-dividend date07/20/202606/18/2026

Bottom lineChoose SPHD if you want higher current income (4.84% vs 2.35% for VYM). Choose VYM if you want simple, diversified core exposure in one low-cost fund.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Invesco
ETFs247
Total AUM$983B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on SPHD.

See all Invesco ETFs
Vanguard
ETFs116
Total AUM$4658B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VYM.

See all Vanguard ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

SPHD has lagged VYM over the trailing twelve months, posting a 14.06% total return against 24.05%. The lead holds up over 10 years too: VYM has compounded at 11.92% a year, against 7.38% for SPHD. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Oct 2012Volatility Sharpe Sortino Max drawdown
SPHD13.73%14.06%13.15%7.94%7.38%9.75%13.1%0.600.87-13.3%
VYM16.43%24.05%18.47%12.22%11.92%12.25%12.5%1.001.45-14.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Oct 2012” measures every fund from October 18, 2012 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

SPHD (Invesco S&P 500 High Dividend Low Volatility ETF) and VYM (Vanguard High Dividend Yield Index Fund ETF Shares) are both dividend ETFs, but they take different approaches.

SPHD offers the higher yield at 4.84% vs 2.35% for VYM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VYM is cheaper with an expense ratio of 0.06% compared to 0.30%.

They track different benchmarks: SPHD is linked to S&P 500 Low Volatility High Dividend Index while VYM tracks FTSE High Dividend Yield Index, which means their performance drivers differ.

VYM is the larger fund by assets ($83.4B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose SPHD

Invesco S&P 500 High Dividend Low Volatility ETF

  • Want higher current income — SPHD yields 4.84% vs 2.35% for VYM.
  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.5 vs 0.7 for VYM.

Choose VYM

Vanguard High Dividend Yield Index Fund ETF Shares

  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.06% expense ratio vs 0.30% for SPHD.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, SPHD would generate roughly $40.33/month, while VYM would produce $19.58/month, at current distribution rates.

SPHD yield4.84%
VYM yield2.35%
Monthly diff on $10K$20.75

Cost & efficiency

Over 10 years on $10,000, SPHD would cost approximately $300 in fees vs $60 for VYM (simplified, not compounded). The $240.00 difference may be offset by yield or performance.

SPHD ER0.30%
VYM ER0.06%

Strategy & risk

SPHD tracks S&P 500 Low Volatility High Dividend Index with a dividend approach, while VYM tracks FTSE High Dividend Yield Index. Beta is 0.45 for SPHD and 0.68 for VYM, indicating SPHD is less volatile relative to the market.

SPHD beta0.45
VYM beta0.68

Fund details

SPHD is managed by Invesco (launched 10/18/2012) with $3.43B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $83.4B in assets.

SPHD AUM$3.43B
VYM AUM$83.4B
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Frequently asked questions

What is the current distribution yield for SPHD and VYM?

SPHD currently distributes 4.84% and VYM 2.35%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is SPHD or VYM better for dividend income?

It depends on your goals. SPHD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between SPHD and VYM?

SPHD (Invesco S&P 500 High Dividend Low Volatility ETF) tracks S&P 500 Low Volatility High Dividend Index with a dividend approach, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks FTSE High Dividend Yield Index. They are issued by Invesco and Vanguard respectively.

Can I hold both SPHD and VYM?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is SPHD or VYM safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VYM scores 95, SPHD scores 91, so VYM's payout currently looks the more resilient of the two. SPHD has also shown lower price volatility (beta 0.45 vs 0.68 for VYM). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, SPHD or VYM?

SPHD has an expense ratio of 0.30% while VYM charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in SPHD vs VYM generate?

At current rates, $10,000 in SPHD would generate roughly $40.33 per month ($484.00 annually). The same in VYM would produce about $19.58 per month ($235.00 annually).

Which has performed better historically, SPHD or VYM?

SPHD has lagged VYM over the trailing twelve months, posting a 14.06% total return against 24.05%. The lead holds up over 10 years too: VYM has compounded at 11.92% a year, against 7.38% for SPHD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

SPHD vs VYM — at a glance

Generated August 15, 2026.

Overview

SPHD and VYM are both U.S. equity dividend ETFs, but they pursue meaningfully different income strategies. SPHD targets the 50 least volatile, highest-yielding S&P 500 stocks and distributes monthly, while VYM tracks a broader FTSE index of value-oriented dividend payers and pays quarterly. The result is a 4.84% yield on SPHD versus 2.35% on VYM—a tradeoff between concentrated income and diversification.

How they differ

SPHD's defining feature is its tight focus: it holds only the 50 most stable, dividend-rich constituents of the S&P 500, paired with monthly distributions designed to feed income-hungry portfolios. VYM casts a wider net, tracking the FTSE High Dividend Yield Index, which captures a broader universe of large-cap dividend payers across value characteristics, not just volatility and yield. This makes VYM substantially larger—$83.4B versus $3.43B in AUM—and explains the expense ratio gulf: VYM charges 0.06% while SPHD costs 0.30%. On volatility, SPHD's beta of 0.45 versus VYM's 0.68 reflects its lower-volatility construction; SPHD's concentrated stock-picking is intended to smooth drawdowns. The yield difference—4.84% versus 2.35%—stems directly from SPHD's deliberate selection of higher-yielding names rather than VYM's broader value-dividend mandate.

Who each is best for

SPHD: Fits investors who prioritize steady monthly income and can tolerate single-digit concentration (holding just 50 stocks) in exchange for a yield well above the market average, and who value low volatility through market cycles.

VYM: Fits investors seeking broad large-cap dividend exposure at minimal cost, comfortable with quarterly distributions and a lower yield, and who prefer market-weight-ish diversification over yield maximization.

Key risks to know

  • Concentration risk in SPHD. Limiting the portfolio to 50 names introduces idiosyncratic risk; if a handful of these stocks stumble or cut dividends, the fund's income and NAV could move sharply. VYM's broader index mitigates this exposure.
  • NAV erosion at SPHD's elevated yield. A 4.84% distribution rate on a large-cap equity ETF raises questions about whether underlying earnings or buybacks fully support the payout. If total return falls short of the distribution rate, NAV will erode over time—a structural risk VYM sidesteps with its lower, more conservative 2.35% yield.
  • Low-volatility equity drawback. SPHD's 0.45 beta and emphasis on stability may lag in strong bull markets when more volatile, growthier dividend payers rally harder. VYM's broader value tilt captures some of this upside.
  • Index methodology and overlap. SPHD and VYM track different underlying indexes (S&P 500 Low Volatility High Dividend versus FTSE High Dividend Yield), so their holdings likely diverge; verify any overlap if these are held alongside each other.

Bottom line

If you want high monthly income and accept holding 50 concentrated blue-chip names, SPHD delivers a 4.84% yield at the price of higher concentration and NAV erosion risk. If you prefer broad diversification, minimal fees, and a lower, more sustainable yield, VYM's $83.4B asset base and 0.06% expense ratio offer a simpler, lower-friction choice. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

What the distribution rate really tells you Why a high yield isn't high income How to read a fund's stats

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