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ETF Comparison

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

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

Data updated August 19, 2026

Best for

  • VTVInvestors who want broad equity exposure.
  • VYMInvestors who want simple, diversified core exposure in one low-cost fund.

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

VTV has outpaced VYM over the trailing twelve months, posting a 28.52% total return against 23.69%. The lead holds up over 10 years too: VTV has compounded at 12.71% a year, against 11.82% for VYM. 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
VTV18.94%28.52%19.62%12.77%12.71%9.22%12.3%1.101.59-14.5%
VYM15.60%23.69%19.07%12.42%11.82%9.47%12.5%1.041.51-14.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 19, 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.
MetricVTVVYM
Full nameVanguard Morningstar Value ETFVanguard High Dividend Yield Index Fund ETF Shares
IssuerVanguardVanguard
Last Close$226.32 as of August 19, 2026$165.55 as of August 19, 2026
Distribution yield1.91%2.37%
Distribution Safety Score™ 9795
Expense ratio0.03%0.04%
AUM$194B$84.3B
Distribution frequencyQuarterlyQuarterly
Underlying indexMorningstar US Large Cap Value IndexFTSE High Dividend Yield Index
ObjectiveSeeks to track the Morningstar US Large Cap Value 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 classEquityEquity
Inception date01/26/200411/10/2006
Beta0.680.68
Last dividend$1.0820$0.9800
Ex-dividend date06/26/202606/18/2026

Bottom lineChoose VTV if you want broad equity exposure. 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.

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

VTV (Vanguard Morningstar Value ETF) 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 1.91% for VTV. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VTV is cheaper with an expense ratio of 0.03% compared to 0.04%.

They track different benchmarks: VTV is linked to Morningstar US Large Cap Value Index while VYM tracks FTSE High Dividend Yield Index, which means their performance drivers differ.

VTV is the larger fund by assets ($194B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VTV would generate roughly $15.92/month, while VYM would produce $19.75/month, at current distribution rates. Both pay quarterly distributions.

VTV yield1.91%
VYM yield2.37%
Monthly diff on $10K$3.83

Cost & efficiency

Over 10 years on $10,000, VTV would cost approximately $30 in fees vs $40 for VYM (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

VTV ER0.03%
VYM ER0.04%

Strategy & risk

VTV tracks Morningstar US Large Cap Value Index with an index approach, while VYM tracks FTSE High Dividend Yield Index.

VTV beta0.68
VYM beta0.68

Fund details

VTV is managed by Vanguard (launched 01/26/2004) with $194B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $84.3B in assets.

VTV AUM$194B
VYM AUM$84.3B
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Frequently asked questions

What is the current distribution yield for VTV and VYM?

VTV currently distributes 1.91% 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 VTV 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 VTV and VYM?

VTV (Vanguard Morningstar Value ETF) tracks Morningstar US Large Cap Value Index with an index approach, 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 VTV 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 VTV 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 — they are effectively tied: VTV scores 97, VYM scores 95. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VTV or VYM?

VTV has an expense ratio of 0.03% while VYM charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in VTV would generate roughly $15.92 per month ($191.00 annually). The same in VYM would produce about $19.75 per month ($237.00 annually).

Which has performed better historically, VTV or VYM?

VTV has outpaced VYM over the trailing twelve months, posting a 28.52% total return against 23.69%. The lead holds up over 10 years too: VTV has compounded at 12.71% a year, against 11.82% for VYM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VTV 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

VTV and VYM are large-cap U.S. equity ETFs from Vanguard that both tilt toward value stocks but use different selection criteria. VTV tracks the broad CRSP US Large Cap Value Index and targets companies showing value characteristics (low price-to-book, price-to-earnings ratios). VYM tracks the FTSE High Dividend Yield Index and focuses on large-cap stocks with a documented history of above-average dividend payments alongside value traits. The key distinction: VTV is a value-focused fund that happens to pay dividends; VYM is a dividend-focused fund that also exhibits value characteristics.

How they differ

VYM's explicit tilt toward dividend payers produces a distribution rate of 2.35% versus VTV's 1.90%—a meaningful 45 basis-point spread that compounds over time. Both funds hold beta of 0.68, suggesting similar market sensitivity, but VYM's narrower focus on dividend-paying stocks may create concentration risk in income-oriented sectors compared to VTV's broader value methodology. VYM has a slightly higher expense ratio at 0.06% versus VTV's 0.03%, though both remain very low; VTV's $191B in AUM dwarfs VYM's $83.4B, reflecting VTV's broader mandate and longer track record in the Vanguard suite.

Who each is best for

VTV: Fits investors seeking pure large-cap value exposure without sector or income constraints; works well for those who want the most diversified selection of undervalued companies and prefer lower fees.

VYM: Fits investors who prioritize current dividend income alongside value exposure; matches allocations where elevated yields matter but the investor still wants equity-market participation and moderate volatility.

Key risks to know

  • Sector concentration in VYM. A mandate favoring dividend-paying large-cap stocks concentrates exposure in historically high-yield sectors (financials, utilities, REITs) versus VTV's broader value exposure, potentially creating unintended sector bets.
  • Dividend-cut risk. VYM's screening for dividend-paying stocks does not guarantee dividend stability; a recession or earnings decline could prompt cuts across the portfolio, eroding the yield advantage that attracted investors.
  • Value-trap exposure. Both funds' value tilt means holdings may include companies whose low valuations reflect genuine business deterioration rather than temporary market mispricing; neither screens for quality metrics that might filter out value traps.
  • Index correlation and overlap. The funds' holdings likely overlap substantially given both track value-oriented large-cap indexes; the apparent diversification benefit between them is limited, so holding both together provides redundancy rather than meaningful diversification.

Bottom line

If you're building a broad value allocation and want the lowest cost and deepest diversification, VTV's lower expense ratio and larger asset base stand out. If current income is a stated portfolio goal alongside value exposure, VYM's 45 basis-point yield advantage may justify the higher fee—but verify that concentration in dividend-paying sectors fits your target allocation. 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

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