VYM vs. VIG
Compare and contrast key facts about Vanguard High Dividend Yield ETF (VYM) and Vanguard Dividend Appreciation ETF (VIG).
VYM and VIG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. 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. Both VYM and VIG 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: VYM or VIG.
Key characteristics
| VYM | VIG | |
|---|---|---|
| YTD Return | 4.49% | 2.74% |
| 1Y Return | 14.04% | 13.77% |
| 3Y Return (Ann) | 7.07% | 6.49% |
| 5Y Return (Ann) | 9.14% | 11.08% |
| 10Y Return (Ann) | 9.48% | 10.90% |
| Sharpe Ratio | 1.11 | 1.29 |
| Daily Std Dev | 10.84% | 9.86% |
| Max Drawdown | -56.98% | -46.81% |
| Current Drawdown | -4.13% | -4.72% |
Correlation
The correlation between VYM and VIG 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
VYM vs. VIG - Performance Comparison
In the year-to-date period, VYM achieves a 4.49% return, which is significantly higher than VIG's 2.74% return. Over the past 10 years, VYM has underperformed VIG with an annualized return of 9.48%, while VIG has yielded a comparatively higher 10.90% 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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VYM vs. VIG - Expense Ratio Comparison
Both VYM and VIG 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
VYM vs. VIG - Risk-Adjusted Performance 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.
Dividends
VYM vs. VIG - Dividend Comparison
VYM's dividend yield for the trailing twelve months is around 2.95%, more than VIG's 1.85% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VYM Vanguard High Dividend Yield ETF | 2.95% | 3.12% | 3.01% | 2.76% | 3.18% | 3.03% | 3.40% | 2.80% | 2.91% | 3.22% | 2.78% | 2.81% |
VIG Vanguard Dividend Appreciation ETF | 1.85% | 1.88% | 1.96% | 1.55% | 1.63% | 1.71% | 2.08% | 1.88% | 2.14% | 2.34% | 1.95% | 1.84% |
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. For additional features, visit the drawdowns tool.
Volatility
VYM vs. VIG - Volatility Comparison
Vanguard High Dividend Yield ETF (VYM) has a higher volatility of 3.15% compared to Vanguard Dividend Appreciation ETF (VIG) at 2.87%. 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.