VYM vs. VIG

Last updated Jun 11, 2026

VYM (Vanguard High Dividend Yield ETF) and VIG (Vanguard Dividend Appreciation ETF) are both Dividend funds from Vanguard - VYM tracks the FTSE High Dividend Yield Index while VIG tracks the S&P U.S. Dividend Growers Index. Both are passively managed. Over the past 10 years, VYM returned 11.63%/yr vs 12.97%/yr for VIG. Their correlation of 0.93 suggests significant overlap in exposure. Both charge a 0.04% expense ratio.

Performance

VYM vs. VIG - Performance Comparison

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

Returns By Period

In the year-to-date period, VYM achieves a 10.18% return, which is significantly higher than VIG's 5.84% return. Over the past 10 years, VYM has underperformed VIG with an annualized return of 11.63%, while VIG has yielded a comparatively higher 12.97% annualized return.

VYM

• 1D: -1.03%
• 1M: 0.90%
• YTD: 10.18%
• 6M: 8.44%
• 1Y: 22.92%
• 3Y*: 17.66%
• 5Y*: 11.15%
• 10Y*: 11.63%

VIG

• 1D: -1.02%
• 1M: 1.51%
• YTD: 5.84%
• 6M: 4.83%
• 1Y: 16.95%
• 3Y*: 15.77%
• 5Y*: 10.36%
• 10Y*: 12.97%

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

VYM vs. VIG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	10.18%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
VIG Vanguard Dividend Appreciation ETF	5.84%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%

Correlation

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

VYM vs. VIG - Sectors Allocation Comparison

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

Return for Risk

VYM vs. VIG — Risk / Return Rank

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

VYM

VYM Risk / Return Rank: 79
VYM Sharpe Ratio Rank: 80
VYM Sortino Ratio Rank: 82
VYM Omega Ratio Rank: 78
VYM Calmar Ratio Rank: 77
VYM Martin Ratio Rank: 77

VIG

VIG Risk / Return Rank: 56
VIG Sharpe Ratio Rank: 57
VIG Sortino Ratio Rank: 60
VIG Omega Ratio Rank: 55
VIG Calmar Ratio Rank: 49
VIG Martin Ratio Rank: 57

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.

VYM vs. VIG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and Vanguard Dividend Appreciation ETF (VIG). 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.

	VYM	VIG	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.68	+0.53
Sortino ratio: Return per unit of downside risk	3.15	2.45	+0.71
Omega ratio: Gain probability vs. loss probability	1.40	1.30	+0.10
Calmar ratio: Return relative to maximum drawdown	3.44	2.15	+1.29
Martin ratio: Return relative to average drawdown	12.81	8.65	+4.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VYM vs. VIG - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.22, which is higher than the VIG Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of VYM and VIG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VYM	VIG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.22	1.68	+0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.80	0.73	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.71	0.81	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.60	-0.09

Drawdowns

VYM vs. VIG - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, which is greater than VIG's maximum drawdown of -46.81%. Use the drawdown chart below to compare losses from any high point for VYM and VIG.

Drawdown Indicators

	VYM	VIG	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-46.81%	-10.17%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-7.91%	+1.22%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-14.95%	+0.49%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-20.39%	+4.55%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-31.72%	-3.49%
Current Drawdown Current decline from peak	-2.46%	-2.03%	-0.43%
Average Drawdown Average peak-to-trough decline	-7.19%	-5.51%	-1.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	1.96%	-0.17%

Volatility

VYM vs. VIG - Volatility Comparison

Vanguard High Dividend Yield ETF (VYM) has a higher volatility of 3.05% compared to Vanguard Dividend Appreciation ETF (VIG) at 2.68%. This indicates that VYM's price experiences larger fluctuations and is considered to be riskier than VIG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	VIG	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	2.68%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	7.81%	7.75%	+0.06%
Volatility (1Y) Calculated over the trailing 1-year period	10.40%	10.14%	+0.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.98%	14.25%	-0.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.35%	16.06%	+0.29%

VYM vs. VIG - Expense Ratio Comparison

Both VYM and VIG 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

VYM vs. VIG - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.23%, more than VIG's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIG Vanguard Dividend Appreciation ETF	1.49%	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	2.23%	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 VYM and VIG in my portfolio?

With a correlation of 0.92, VYM and VIG 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, VYM or VIG?

VYM has higher volatility (3.05%) compared to VIG (2.68%). In terms of maximum drawdown, VYM dropped -56.98% vs VIG's -46.81%.

Which ETF is better, VYM or VIG?

On 10-year performance, VIG leads with 12.97% vs 11.63% for VYM. Both ETFs have the same 0.04% expense ratio. On volatility, VIG has been the lower-risk option at 2.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VYM or VIG?

Over the 10-year period, VIG has performed better with a 12.97% return vs 11.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYM or VIG?

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

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

VYM has the higher dividend yield at 2.23%, compared with 1.49% for VIG.

What is the main difference between VYM and VIG?

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

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.22 vs 1.68), 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.