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Dividend Vision

ETF Comparison

VIG vs VYM: Dividend Growth, or High Yield?

A head-to-head of Vanguard Dividend Appreciation and Vanguard High Dividend Yield covering how each picks stocks, cost, and cash.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • VIGInvestors who want simple, diversified core exposure in one low-cost fund.
  • VYMInvestors who want higher current income (2.27% vs 1.58% for VIG).

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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

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

VIG has lagged VYM over the trailing twelve months, posting a 10.12% total return against 13.62%. The picture flips over 10 years, though — VIG has compounded at 13.00% a year, ahead of VYM at 11.41%. 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.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Nov 2006Volatility Sharpe Sortino Max drawdown
VIG7.84%10.12%16.94%10.68%13.00%9.92%12.2%0.921.34-15.0%
VYM10.00%13.62%18.48%11.55%11.41%9.14%12.4%1.011.46-14.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Nov 2006” measures every fund from November 16, 2006 — the start of shared available history — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVIGVYM
Full nameVanguard Dividend Appreciation ETFVanguard High Dividend Yield ETF
IssuerVanguardVanguard
Underlying indexS&P U.S. Dividend Growers IndexFTSE High Dividend Yield Index
Last Close$235.05 as of October 2, 2026$156.46 as of October 2, 2026
Distribution rate1.58%2.27%
Trailing 12-month yield1.55%2.35%
Distribution Safety Score™ 10095
Safety-Adjusted Yield 1.58%2.16%
Expense ratio0.04%0.04%
AUM$111B$80.2B
Distribution frequencyQuarterlyQuarterly
ObjectiveSeeks to track the performance of the S&P U.S. Dividend Growers Index, which consists of common stocks of companies that have a record of at least 10 years of increasing regular cash dividend payments.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 date04/21/200611/10/2006
Beta0.740.66
Last dividend$0.93$0.887
Ex-dividend date09/28/202609/18/2026

Bottom lineChoose VIG if you want simple, diversified core exposure in one low-cost fund. Choose VYM if you want higher current income (2.27% vs 1.58% for VIG).

Dividend growth versus high dividend yield

VIG holds companies with a record of raising dividends. VYM holds higher-yielding dividend stocks. Screen is the split.

VIGVYM
ScreenDividend appreciationHigh dividend yield
Expense ratio0.04%0.04%
Distribution rate1.58%2.27%
Fund size$111B$80.2B
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Income calculator

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

Vanguard
ETFs116
Total AUM$4676B

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 VIG and VYM.

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Quick verdict

VIG (Vanguard Dividend Appreciation ETF) and VYM (Vanguard High Dividend Yield ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VYM offers the higher yield at 2.27% vs 1.58% for VIG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

They have different reference exposures: VIG is linked to S&P U.S. Dividend Growers Index while VYM is linked to FTSE High Dividend Yield Index, which means their performance drivers differ.

VIG is the larger fund by assets ($111B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VIG would generate roughly $39.50 cash per distribution, while VYM would produce $56.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

VIG yield1.58%
VYM yield2.27%
Cash diff on $10K$17.25

Cost & efficiency

Over 10 years on $10,000, VIG would cost approximately $40 in fees vs $40 for VYM (simplified, not compounded). Both charge the same expense ratio.

VIG ER0.04%
VYM ER0.04%

Strategy & risk

VIG tracks S&P U.S. Dividend Growers Index, while VYM tracks FTSE High Dividend Yield Index. Beta is 0.74 for VIG and 0.66 for VYM, making VYM the less volatile of the two by this measure.

VIG beta0.74
VYM beta0.66

Fund details

VIG is managed by Vanguard (launched 04/21/2006) with $111B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $80.2B in assets.

VIG AUM$111B
VYM AUM$80.2B
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Frequently asked questions

What is the difference between VIG and VYM?

VIG (Vanguard Dividend Appreciation ETF) holds companies with a record of raising dividends. VYM (Vanguard High Dividend Yield ETF) holds higher-yielding dividend stocks. Cost is 0.04% versus 0.04%. Distributions are 1.58% and 2.27% as of October 2026. Screen, not a one-date yield, is the split.

What is the current distribution rate for VIG and VYM?

VIG currently distributes 1.58% and VYM 2.27%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is VIG or VYM better for dividend income?

It depends on your goals. VYM 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.

Can I hold both VIG 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 VIG 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 — VIG scores 100, VYM scores 95, so VIG's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VIG or VYM?

VIG and VYM both charge the same expense ratio of 0.04%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

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

At current rates, $10,000 in VIG would generate roughly $39.50 cash per distribution ($158.00 annually). The same in VYM would produce about $56.75 cash per distribution ($227.00 annually).

Which has performed better historically, VIG or VYM?

VIG has lagged VYM over the trailing twelve months, posting a 10.12% total return against 13.62%. The picture flips over 10 years, though — VIG has compounded at 13.00% a year, ahead of VYM at 11.41%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VIG vs VYM — at a glance

Generated October 3, 2026.

Overview

VIG and VYM are both broad-market large-cap equity ETFs that emphasize dividends, but they select stocks using fundamentally different criteria. VIG tracks the S&P U.S. Dividend Growers Index and focuses on companies with at least 10 years of consecutive dividend increases—a quality screen for consistent capital return. VYM tracks the FTSE High Dividend Yield Index and emphasizes companies with above-average current dividend yields and value characteristics, making it a yield-first strategy. The choice between them hinges on whether you prioritize dividend growth history or current income.

How they differ

The most important difference is selection logic: VIG requires a decade of rising dividends, filtering for companies with a disciplined track record of increasing payouts. VYM prioritizes current yield and value metrics, capturing companies paying well today without requiring a long history of increases. This drives the second key difference—current income. VYM's distribution rate is 2.27%, compared to 1.58% for VIG, a gap of 0.69%. Both charge 0.04%, so fees are identical. VIG has a larger asset base at $111B versus $80.2B, though both are substantial. A third distinction appears in volatility: VIG carries a beta of 0.74, while VYM's beta is 0.66, suggesting VIG has historically moved more with the broader market.

Who each is best for

VIG: Fits investors seeking capital appreciation paired with steady dividend growth, comfortable with lower current yields and a bias toward companies demonstrating disciplined payout management over a long arc.

VYM: Fits investors who prioritize current income from equities and value-oriented exposure, accepting exposure to companies with higher yields today even if their payout growth history is shorter.

Key risks to know

  • Dividend cut risk in VIG: Companies with 10-year streaks can still reduce or suspend payouts during severe downturns or strategic shifts; the historical record doesn't guarantee future increases.
  • Value trap exposure in VYM: High current yields may reflect permanent deterioration in business quality or earnings; screening for yield alone can lead to picking companies in structural decline.
  • Sector concentration: Both funds will tilt toward dividend-friendly sectors (financials, utilities, real estate) where yields cluster; this overlap may create unintended sector bets that amplify downturns in those industries.
  • Interest-rate sensitivity: Rising rates typically pressure dividend stocks; the lower beta of VYM (0.66) suggests it may be somewhat more defensive, but both remain equity-sensitive to yield curve movements.
  • Valuation divergence: A market rally favoring growth over value will likely pressure VYM more than VIG, since VYM's value tilt may lag in a momentum-driven environment.

Bottom line

If you want exposure to companies with a demonstrated commitment to rising payouts and can tolerate lower near-term income, VIG's growth-focused dividend screen fits that profile. If you prioritize current yield and are comfortable with value characteristics, VYM's 2.27% rate offers 0.69% more immediate income. Both offer very low fees and broad exposure, so the choice is mainly about philosophy: dividend growth versus dividend yield. Past performance doesn't guarantee 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 T-bills vs. money market funds vs. CDs

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These comparisons follow the Dividend Vision methodology.