A head-to-head comparison of Vanguard Real Estate ETF and Vanguard High Dividend Yield Index Fund ETF Shares covering yield, cost, risk, and income potential.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.
See our curated list of related YouTube videos on VNQ and VYM.
Vanguard High Dividend Yield Index Fund ETF Shares
Issuer
Vanguard
Vanguard
Last Close
$97.57 as of July 15, 2026
$160.18 as of July 15, 2026
Distribution yield
3.51%
2.45%
Distribution Safety Score
93
100
Expense ratio
0.12%
0.06%
AUM
$37.7B
$78.3B
Distribution frequency
Quarterly
Quarterly
Underlying index
MSCI US IMI Real Estate 25/50 Index
a basket of Vanguard High Dividend Yield ETF holdings
Objective
Track the MSCI US Investable Market Real Estate 25/50 Index.
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 class
Equity
Equity
Inception date
09/23/2004
11/10/2006
Beta
1.0
0.69
Last dividend
$0.8554
$0.9800
Ex-dividend date
06/24/2026
06/18/2026
Bottom lineChoose VNQ if you want higher current income (3.51% vs 2.45% for VYM). Choose VYM if you want simple, diversified core exposure in one low-cost fund.
Most used
Income calculator
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Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
VNQ (Vanguard Real Estate ETF) and VYM (Vanguard High Dividend Yield Index Fund ETF Shares) are both quarterly-pay dividend ETFs, but they take different approaches.
VNQ offers the higher yield at 3.51% vs 2.45% 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 0.12%.
They track different benchmarks: VNQ is linked to MSCI US IMI Real Estate 25/50 Index while VYM tracks a basket of Vanguard High Dividend Yield ETF holdings, which means their performance drivers differ.
VYM is the larger fund by assets ($78.3B), which generally means tighter spreads and better liquidity.
Who should choose each?
Choose VNQ
Vanguard Real Estate ETF
Want higher current income — VNQ yields 3.51% vs 2.45% for VYM.
Want real-estate exposure for income and inflation sensitivity.
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 0.12% for VNQ.
Prefer lower volatility — a beta of 0.7 vs 1.0 for VNQ.
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, VNQ would generate roughly $29.25/month, while VYM would produce $20.42/month, at current distribution rates. Both pay quarterly distributions.
VNQ yield3.51%
VYM yield2.45%
Monthly diff on $10K$8.83
Cost & efficiency
Over 10 years on $10,000, VNQ would cost approximately $120 in fees vs $60 for VYM (simplified, not compounded). The $60.00 difference may be offset by yield or performance.
VNQ ER0.12%
VYM ER0.06%
Strategy & risk
VNQ tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach, while VYM holds a basket of Vanguard High Dividend Yield ETF holdings with an index approach. Beta is 1.0 for VNQ and 0.69 for VYM, indicating VYM is less volatile relative to the market.
VNQ beta1.0
VYM beta0.69
Fund details
VNQ is managed by Vanguard (launched 09/23/2004) with $37.7B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $78.3B in assets.
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Frequently asked questions
Is VNQ or VYM better for dividend income?
It depends on your goals. VNQ 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 VNQ and VYM?
VNQ (Vanguard Real Estate ETF) tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) holds a basket of Vanguard High Dividend Yield ETF holdings with an index approach. They are issued by Vanguard and Vanguard respectively.
Can I hold both VNQ 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.
Which has lower fees, VNQ or VYM?
VNQ has an expense ratio of 0.12% 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 VNQ vs VYM generate?
At current rates, $10,000 in VNQ would generate roughly $29.25 per month ($351.00 annually). The same in VYM would produce about $20.42 per month ($245.00 annually).
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