VIG vs. VYM

Last updated Jun 13, 2026

VIG (Vanguard Dividend Appreciation ETF) and VYM (Vanguard High Dividend Yield ETF) are both Dividend funds from Vanguard - VIG tracks the S&P U.S. Dividend Growers Index while VYM tracks the FTSE High Dividend Yield Index. Both are passively managed. Over the past 10 years, VIG returned 13.24%/yr vs 11.95%/yr for VYM. Their correlation of 0.93 suggests significant overlap in exposure. Both charge a 0.04% expense ratio.

Performance

VIG vs. VYM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Dividend Appreciation ETF (VIG) and Vanguard High Dividend Yield ETF (VYM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIG achieves a 7.68% return, which is significantly lower than VYM's 12.37% return. Over the past 10 years, VIG has outperformed VYM with an annualized return of 13.24%, while VYM has yielded a comparatively lower 11.95% annualized return.

VIG

• 1D: 0.53%
• 1M: 3.08%
• YTD: 7.68%
• 6M: 6.99%
• 1Y: 18.23%
• 3Y*: 15.98%
• 5Y*: 10.74%
• 10Y*: 13.24%

VYM

• 1D: 0.80%
• 1M: 3.01%
• YTD: 12.37%
• 6M: 11.19%
• 1Y: 24.69%
• 3Y*: 18.06%
• 5Y*: 11.59%
• 10Y*: 11.95%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VIG vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIG Vanguard Dividend Appreciation ETF	7.68%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%
VYM Vanguard High Dividend Yield ETF	12.37%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Correlation

The correlation between VIG and VYM is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.90
Correlation (All Time) Calculated using the full available price history since Nov 16, 2006	0.93

The correlation between VIG and VYM has been stable across timeframes, ranging from 0.90 to 0.93 - a consistent structural relationship.

VIG vs. VYM - Sectors Allocation Comparison

Sectors	VIG	VYM
Technology	26.2%	17.7%
Financial Services	20.6%	20.5%
Healthcare	16.5%	12.2%
Industrials	11.8%	12.1%
Consumer Defensive	10.1%	8.1%
Consumer Cyclical	4.7%	6.7%
Energy	3.5%	9.8%
Basic Materials	3.5%	3.5%
Utilities	3.2%	5.7%
Communication Services	0.5%	3.5%
Real Estate	-	0.0%

Return for Risk

VIG vs. VYM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VIG

VIG Risk / Return Rank: 60
VIG Sharpe Ratio Rank: 63
VIG Sortino Ratio Rank: 66
VIG Omega Ratio Rank: 61
VIG Calmar Ratio Rank: 53
VIG Martin Ratio Rank: 60

VYM

VYM Risk / Return Rank: 83
VYM Sharpe Ratio Rank: 85
VYM Sortino Ratio Rank: 86
VYM Omega Ratio Rank: 83
VYM Calmar Ratio Rank: 81
VYM Martin Ratio Rank: 81

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VIG vs. VYM - Risk-Adjusted Trends 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VIG	VYM	Difference
Sharpe ratio: Return per unit of total volatility	1.80	2.37	-0.57
Sortino ratio: Return per unit of downside risk	2.61	3.37	-0.75
Omega ratio: Gain probability vs. loss probability	1.32	1.42	-0.10
Calmar ratio: Return relative to maximum drawdown	2.32	3.70	-1.39
Martin ratio: Return relative to average drawdown	9.34	13.81	-4.47

VIG vs. VYM - Sharpe Ratio Comparison

The current VIG Sharpe Ratio is 1.80, which is comparable to the VYM Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of VIG and VYM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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.

Drawdown Indicators

	VIG	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-46.81%	-56.98%	+10.17%
Max Drawdown (1Y) Largest decline over 1 year	-7.91%	-6.69%	-1.22%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-14.46%	-0.49%
Max Drawdown (5Y) Largest decline over 5 years	-20.39%	-15.84%	-4.55%
Max Drawdown (10Y) Largest decline over 10 years	-31.72%	-35.21%	+3.49%
Current Drawdown Current decline from peak	-0.33%	-0.52%	+0.19%
Average Drawdown Average peak-to-trough decline	-5.51%	-7.18%	+1.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	1.80%	+0.16%

Volatility

VIG vs. VYM - Volatility Comparison

The current volatility for Vanguard Dividend Appreciation ETF (VIG) is 2.93%, while Vanguard High Dividend Yield ETF (VYM) has a volatility of 3.31%. This indicates that VIG experiences smaller price fluctuations and is considered to be less risky than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIG	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.93%	3.31%	-0.38%
Volatility (6M) Calculated over the trailing 6-month period	7.78%	7.81%	-0.03%
Volatility (1Y) Calculated over the trailing 1-year period	10.19%	10.47%	-0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.25%	13.99%	+0.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.06%	16.35%	-0.29%

VIG vs. VYM - Expense Ratio Comparison

Both VIG and VYM have an expense ratio of 0.04%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VIG vs. VYM - Dividend Comparison

VIG's dividend yield for the trailing twelve months is around 1.47%, less than VYM's 2.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIG Vanguard Dividend Appreciation ETF	1.47%	1.62%	1.73%	1.88%	1.96%	1.55%	1.63%	1.71%	2.08%	1.88%	2.14%	2.34%
VYM Vanguard High Dividend Yield ETF	2.19%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VIG and VYM in my portfolio?

With a correlation of 0.92, VIG and VYM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VIG or VYM?

VYM has higher volatility (3.31%) compared to VIG (2.93%). In terms of maximum drawdown, VIG dropped -46.81% vs VYM's -56.98%.

Which ETF is better, VIG or VYM?

On 10-year performance, VIG leads with 13.24% vs 11.95% for VYM. Both ETFs have the same 0.04% expense ratio. On volatility, VIG has been the lower-risk option at 2.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIG or VYM?

Over the 10-year period, VIG has performed better with a 13.24% return vs 11.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIG or VYM?

VIG and VYM have the same expense ratio: 0.04% per year.

Which ETF pays a higher dividend yield, VIG or VYM?

VYM has the higher dividend yield at 2.19%, compared with 1.47% for VIG.

What is the main difference between VIG and VYM?

VIG tracks S&P U.S. Dividend Growers Index, while VYM tracks FTSE High Dividend Yield Index.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.37 vs 1.80), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.