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ETF Comparison

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

A head-to-head comparison of Vanguard Dividend Appreciation Index Fund ETF Shares and Vanguard High Dividend Yield Index Fund ETF Shares covering yield, cost, risk, and income potential.

Data updated August 19, 2026

Best for

  • VIGInvestors who want simple, diversified core exposure in one low-cost fund.
  • VYMInvestors who want higher current income (2.37% vs 1.63% for VIG).

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

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

Total returns

VIG has lagged VYM over the trailing twelve months, posting a 18.58% total return against 23.85%. The picture flips over 10 years, though — VIG has compounded at 13.20% a year, ahead of VYM at 11.88%. 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 Nov 2006Volatility Sharpe Sortino Max drawdown
VIG11.73%18.58%17.14%10.57%13.20%10.18%12.2%0.931.36-15.0%
VYM15.75%23.85%18.97%12.16%11.88%9.48%12.5%1.041.51-14.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 18, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Nov 2006” measures every fund from November 16, 2006 — 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVIGVYM
Full nameVanguard Dividend Appreciation Index Fund ETF SharesVanguard High Dividend Yield Index Fund ETF Shares
IssuerVanguardVanguard
Last Close$244.48 as of August 19, 2026$165.55 as of August 19, 2026
Distribution yield1.63%2.37%
Distribution Safety Score™ 10095
Expense ratio0.04%0.04%
AUM$114B$84.3B
Distribution frequencyQuarterlyQuarterly
Underlying indexS&P U.S. Dividend Growers IndexFTSE High Dividend Yield Index
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
Beta0.740.68
Last dividend$0.9990$0.9800
Ex-dividend date06/26/202606/18/2026

Bottom lineChoose VIG if you want simple, diversified core exposure in one low-cost fund. Choose VYM if you want higher current income (2.37% vs 1.63% for VIG).

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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$4703B

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.

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Quick verdict

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

VYM offers the higher yield at 2.37% vs 1.63% for VIG. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

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

VIG is the larger fund by assets ($114B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VIG would generate roughly $13.58/month, while VYM would produce $19.75/month, at current distribution rates. Both pay quarterly distributions.

VIG yield1.63%
VYM yield2.37%
Monthly diff on $10K$6.17

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 0.68 for VYM, making VYM the less volatile of the two by this measure.

VIG beta0.74
VYM beta0.68

Fund details

VIG is managed by Vanguard (launched 04/21/2006) with $114B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $84.3B in assets.

VIG AUM$114B
VYM AUM$84.3B
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Frequently asked questions

What is the current distribution yield for VIG and VYM?

VIG currently distributes 1.63% and VYM 2.37%, 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 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.

What is the difference between VIG and VYM?

VIG (Vanguard Dividend Appreciation Index Fund ETF Shares) tracks S&P U.S. Dividend Growers Index, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks FTSE High Dividend Yield Index. They are issued by Vanguard and Vanguard respectively.

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 $13.58 per month ($163.00 annually). The same in VYM would produce about $19.75 per month ($237.00 annually).

Which has performed better historically, VIG or VYM?

VIG has lagged VYM over the trailing twelve months, posting a 18.58% total return against 23.85%. The picture flips over 10 years, though — VIG has compounded at 13.20% a year, ahead of VYM at 11.88%. 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 August 15, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

VIG and VYM are both broad-market equity ETFs from Vanguard that filter for dividend-paying stocks, but they select holdings using fundamentally different criteria. VIG targets companies with at least 10 years of rising dividends—a quality-focused screen that often captures more stable, mature businesses. VYM hunts for stocks with above-average current yields and value characteristics, which tilts its portfolio toward economically sensitive sectors and higher-yielding names at any given time.

How they differ

The core distinction is selection philosophy: VIG requires a track record of dividend growth, while VYM prioritizes high current yield. This drives VIG toward businesses that have reliably increased payouts over a decade or more—typically more defensive sectors and lower current yields (1.63%)—whereas VYM leans into value and cyclical stocks priced for higher near-term income (2.35% yield).

VYM's value tilt also shows up in beta: VYM registers 0.68 versus VIG's 0.74, suggesting VYM may move a touch less than the broad market in both directions, though both sit below 1.0. Both ETFs charge an identical 0.06% expense ratio and distribute quarterly. VIG holds $114B in AUM; VYM holds $83.4B—both large enough for tight trading and minimal tracking error, but VIG has nearly $31B more in assets.

Who each is best for

VIG: Fits investors seeking a portfolio of businesses with proven, long-term commitment to raising dividends—a signal of stable earnings and shareholder-friendly capital allocation. Suits longer time horizons where compounding reinvested dividends matters more than current yield.

VYM: Fits investors prioritizing current cash flow and exposure to economically sensitive, value-tilted stocks that happen to offer high dividend yields today. Works for those comfortable with sector overlap and potential dividend cuts if economic conditions shift.

Key risks to know

  • Dividend cut risk: VYM's higher yield is partly a function of valuation—stocks paying well above average often carry higher financial risk. Cyclical downturns or operational missteps can force cuts, whereas VIG's 10-year growth requirement tends to screen out more fragile payers.
  • Sector concentration: VYM's value and yield screens naturally overweight sectors like energy, utilities, and financials; VIG tends more defensive. Verify your portfolio doesn't already have heavy sector exposure before adding either.
  • Reinvestment drag: Both distribute quarterly, so an investor holding in a non-automatic-reinvestment account faces timing risk on when cash is redeployed. Over long periods, the timing of reinvestment can move returns more than the yield difference between these two.
  • Beta and market sensitivity: VYM's lower beta (0.68) may appeal during market stress, but in recovery phases it could lag a broader index. VIG's slightly higher beta (0.74) offers more upside in risk-on environments but still trails the full market.

Bottom line

If you want exposure to businesses with a proven dividend-raising discipline and can live with lower current income, VIG's quality lens fits. If current yield and value characteristics matter more and you're comfortable with higher sector concentration in economically sensitive industries, VYM delivers roughly half a percentage point more in distribution rate. Both are extremely cheap to own and liquid; the choice hinges on whether you prioritize dividend growth or high current yield. Past performance doesn't 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 T-bills vs. money market funds vs. CDs

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