VIG vs. VYM
Compare and contrast key facts about Vanguard Dividend Appreciation ETF (VIG) and Vanguard High Dividend Yield ETF (VYM).
VIG and VYM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VIG is a passively managed fund by Vanguard that tracks the performance of the NASDAQ US Dividend Achievers Select Index. It was launched on Apr 21, 2006. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index. It was launched on Nov 10, 2006. Both VIG and VYM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VIG or VYM.
Key characteristics
| VIG | VYM | |
|---|---|---|
| YTD Return | 17.37% | 17.60% |
| 1Y Return | 32.38% | 32.84% |
| 3Y Return (Ann) | 8.43% | 9.21% |
| 5Y Return (Ann) | 12.69% | 10.95% |
| 10Y Return (Ann) | 11.82% | 10.00% |
| Sharpe Ratio | 3.44 | 3.24 |
| Sortino Ratio | 4.79 | 4.51 |
| Omega Ratio | 1.64 | 1.58 |
| Calmar Ratio | 3.91 | 3.84 |
| Martin Ratio | 23.21 | 21.51 |
| Ulcer Index | 1.46% | 1.60% |
| Daily Std Dev | 9.85% | 10.59% |
| Max Drawdown | -46.81% | -56.98% |
| Current Drawdown | -2.07% | -2.21% |
Correlation
The correlation between VIG and VYM is 0.93, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VIG vs. VYM - Performance Comparison
The year-to-date returns for both investments are quite close, with VIG having a 17.37% return and VYM slightly higher at 17.60%. Over the past 10 years, VIG has outperformed VYM with an annualized return of 11.82%, while VYM has yielded a comparatively lower 10.00% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VIG vs. VYM - Expense Ratio Comparison
Both VIG and VYM have an expense ratio of 0.06%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
VIG vs. VYM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation ETF (VIG) and Vanguard High Dividend Yield ETF (VYM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
VIG vs. VYM - Dividend Comparison
VIG's dividend yield for the trailing twelve months is around 1.73%, less than VYM's 2.82% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VIG Vanguard Dividend Appreciation ETF | 1.73% | 1.88% | 1.96% | 1.55% | 1.63% | 1.71% | 2.08% | 1.88% | 2.14% | 2.34% | 1.95% | 1.84% |
VYM Vanguard High Dividend Yield ETF | 2.82% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
Drawdowns
VIG vs. VYM - Drawdown Comparison
The maximum VIG drawdown since its inception was -46.81%, smaller than the maximum VYM drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VIG and VYM. For additional features, visit the drawdowns tool.
Volatility
VIG vs. VYM - Volatility Comparison
Vanguard Dividend Appreciation ETF (VIG) and Vanguard High Dividend Yield ETF (VYM) have volatilities of 2.67% and 2.72%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.