Which Vanguard Dividend ETF Is the Better Buy: VIG or VYM?
Key takeaways
- Vanguard offers two primary options for equity income investors, but their underlying philosophies differ significantly.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- Cost is a non-issue in this matchup, as both funds feature identical 0.04% expense ratios, placing them among the most affordable options in the category.
VIG ^GSPC Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) focuses on companies with a history of increasing their payouts, while Vanguard High Dividend Yield ETF (NYSEMKT:VYM) targets a broader group of stocks that offer a higher current yield.
Vanguard offers two primary options for equity income investors, but their underlying philosophies differ significantly. This comparison examines whether VIG’s focus on dividend consistency provides a better balance of growth and stability than VYM’s high-yield screening in the current market environment.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.