VIG vs VYM

Portfolio characteristics

VIG’s $115.8B is the ETF-share figure on Vanguard’s fund page in early November; Vanguard also reports fund-level assets across share classes. VYM’s $83.3B is ETF Central’s net-asset figure for Nov 2; Vanguard’s fact sheet shows $78.9B for the ETF share class at Sep 30 and $95.8B for the whole fund. VYM’s SEC yield, spread, premium or discount, shares outstanding and NAV were not captured, and VIG’s NAV, premium or discount and beta were not captured. Both market capitalizations are Vanguard medians at Sep 30.

Top ten sums: VIG 34.5% · VYM 26.2%. Vanguard rounds to one decimal. Five stocks appear in both top-ten lists. Weights change.

The sector mirror

Same funds, different lenses

Company size

Both funds, Vanguard Sep 30: VIG median market capitalization $337.6B, VYM $171.0B. VIG is the larger-company fund by this measure, and VYM adds many smaller names across its 593 holdings. Both are overwhelmingly large-company funds.

What you actually own

Average annual: Vanguard, Sep 30, 2026. “Since inception” starts in different years (VIG April 2006, VYM November 2006), so the columns are close in time but should still be read with care. Vanguard’s fact sheets do not show after-tax returns. Calendar years: VIG from Yahoo Finance, VYM from TotalRealReturns. Past performance does not guarantee future results.

Growth of a hypothetical $10,000 · NAV total return to Sep 30, 2026

Both funds derived from the issuers’ annualized NAV returns (compounded). Distributions reinvested, fund expenses deducted. Illustration, not a forecast.

Quarterly payouts per share, newest first

Single payouts are noisy; a four-quarter comparison is steadier. Computed from the distribution tables above.

Rank by rank, the ten largest positions of each fund, both Vanguard, Sep 30. Top five: VIG 22.1%, VYM 18.2%. Top ten: VIG 34.5%, VYM 26.2%.

Both trade on NYSE Arca. A spread of 0.01% is about $10 between the buy and sell price on $100,000. VYM’s spread, premium or discount and share count were not captured for this page, so check them on Vanguard’s fund page before placing a large trade. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.

Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions and taxes. VIG’s ratio has been listed as low as 0.04% and as high as 0.06% in older Vanguard documents; the 0.04% figure is from the current prospectus, as is VYM’s.

Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.

VYM’s higher yield comes from how the two indexes are built. VIG requires at least ten straight years of dividend growth and drops the highest-yielding quarter of eligible stocks, which concentrates it in lower-yielding growers such as Microsoft, Apple and Broadcom. VYM holds every U.S. stock with an above-average forecast yield, which gives 593 holdings, more energy and utilities, and a lower valuation (P/E 19.5x against 24.4x).

The return pattern flips with the window. VYM led over 1 year (12.72% vs 9.77%), 3 years (17.67% vs 16.51%) and 5 years (11.63% vs 10.72%), while VIG led over 10 years (12.86% vs 11.28%). VIG’s technology weight helped over the decade and VYM’s mix held up better in 2022, when VIG fell 9.81% and VYM 0.45%. Sector tilt is the simplest explanation, not proof: leadership can reverse, and a higher yield is not a promise of higher total return. Read yield vs total return before choosing on yield alone.

Start with what separates them. Cost does not: both charge 0.04%, or $4 a year on $10,000. Yield favors VYM: 2.24% trailing against about 1.49%, which on a $100,000 balance implies roughly $2,240 a year against $1,490 at those yields before taxes, if yields held (they change, and the dates differ). Breadth favors VYM: 593 stocks against 333 and a flatter top ten. Dividend-growth screening and a technology tilt favor VIG.

Then check what you already own. Five top-ten stocks are shared and sector weights overlap by about 81%, so holding both adds less than it looks. If you already hold a broad U.S. fund such as VOO or VTI, either fund adds a dividend tilt on top of what you own.

• Step 1 · Goal: dividend growth and a quality tilt (VIG) or higher income and a wide, cheaper-valued list (VYM).
• Step 2 · Overlap: compare each fund with your existing index funds using the Diversification Calculator.
• Step 3 · Sectors: accept a technology-heavy mix (VIG) or more financials, industrials and energy (VYM).
• Step 4 · Cost: identical, so it should not decide this one.
• Step 5 · Account: consider how dividends are taxed in your account type.

Most investors would pick one rather than both. For other ways to compare dividend funds, VIG vs DGRO and SCHD vs VIG show how VIG sits against other dividend funds. Size the position against your whole portfolio.

VIG and VYM are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Currency moves also change your return in Canadian dollars even if the funds are flat in U.S. dollars.

U.S. dividends paid to Canadian residents can be subject to U.S. withholding tax, generally 15% under the Canada-U.S. tax treaty. Registered accounts are treated differently: an RRSP is generally exempt from that withholding on U.S. dividends, while a TFSA is not. In a taxable account the withheld amount may be claimable through the foreign tax credit. Because VYM yields more, the withholding in dollar terms is larger on a given balance.

Canadians holding U.S.-listed assets above a modest threshold may also face U.S. estate tax exposure, which treaty relief can reduce. This is general education, not tax advice; confirm the rules for your situation with a cross-border tax professional.

Both funds invest in U.S. stocks and pay quarterly. Both turn over little: VIG’s turnover was 8.2% and VYM’s 11.3% in their latest fiscal years, which usually limits taxable distributions. Capital gains distribution history was not captured for either fund. U.S. taxpayers may see some dividends taxed at lower qualified rates if holding-period rules are met.

Vanguard’s fact sheets do not show after-tax returns for either fund. For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.

Investors comparing VIG and VYM often also look at Schwab U.S. Dividend Equity (SCHD), iShares Core Dividend Growth (DGRO), iShares Core High Dividend (HDV) and ProShares S&P 500 Dividend Aristocrats (NOBL). See SCHD vs VIG, SCHD vs VYM, VIG vs DGRO and SCHD vs VTI. Broad funds such as VTI and VOO already hold many of the same companies, so check overlap before adding a dividend fund to a core portfolio. See every dividend fund side by side on the Dividend ETFs page.

Is VIG or VYM better?

Neither is better for everyone. VYM pays a higher yield (2.24% trailing against about 1.49% for VIG) and led over 1, 3 and 5 years to Sep 30, 2026. VIG led over 10 years, requires ten straight years of dividend growth and holds a more technology-heavy list. Both charge 0.04%, so the choice turns on income and breadth against dividend growth and quality.

Which pays the higher dividend yield, VIG or VYM?

VYM. Its trailing 12-month yield was 2.24% (ETF Central, Nov 2, 2026) against about 1.49% for VIG (ETFdb, Sep 28). VIG’s 30-day SEC yield was 1.43% on Oct 31 and 1.60% on Sep 30; VYM’s SEC yield was not captured. The dates differ, so treat the gap as approximate.

What are the expense ratios of VIG and VYM?

Both charge 0.04% per Vanguard’s current prospectus, or $4 a year per $10,000. Older Vanguard documents showed higher figures for VIG, so check the latest prospectus.

How much do VIG and VYM overlap?

Five stocks appear in both top-ten lists: Broadcom, JPMorgan Chase, Exxon Mobil, Johnson & Johnson and AbbVie. By this page’s own sector arithmetic, the two funds overlap about 81% by sector weight. A fund-level weight overlap was not captured.

What index does each ETF track?

VIG tracks the S&P U.S. Dividend Growers Index. VYM tracks the FTSE High Dividend Yield Index. Both are passive, quarterly-paying U.S. dividend funds listed on NYSE Arca.

What are the top holdings of VIG and VYM?

VIG’s largest positions on Sep 30, 2026 were Microsoft (4.9%), Apple (4.9%), Broadcom (4.3%), Eli Lilly (4.1%) and JPMorgan Chase (3.9%). VYM’s largest on the same date were Broadcom (6.9%), JPMorgan Chase (3.8%), Exxon Mobil (2.8%), Johnson & Johnson (2.7%) and AbbVie (2.0%).

Which has performed better, VIG or VYM?

It depends on the window. To Sep 30, 2026 VYM led over 1 year (12.72% vs 9.77%), 3 years (17.67% vs 16.51%) and 5 years (11.63% vs 10.72%), and VIG led over 10 years (12.86% vs 11.28%), annualized on NAV. VYM led in 2022, 2024 and 2025 and VIG in 2023. Past performance does not guarantee future results.

Which grew its dividend faster?

VYM’s last four payouts total $3.676 per share, about 4.5% above the prior four. VIG’s last four total $3.646, about 2.7% above the prior four. Short windows are noisy and past growth does not guarantee future growth.

How do VIG and VYM differ by sector?

VIG (Sep 30, 2026) was 26.7% technology, 21.0% financials and 18.6% health care, with 3.6% in energy. VYM (Sep 30, 2026) was 20.4% financials, 14.3% technology, 13.6% industrials and 13.4% health care, with 10.1% in energy and 5.4% in utilities.

Can I own both VIG and VYM?

You can. They share five top-ten stocks and overlap by about 81% by sector weight, so owning both adds less diversification than it seems. Check your combined overlap with a diversification calculator and size positions against your whole portfolio.

Which is less volatile, VIG or VYM?

VIG’s three-year standard deviation was 10.33% against 11.11% for VYM at Sep 30, 2026. Maximum drawdowns were reported for different periods: about 31.7% for VIG’s worst decline in a decade (BestETF) and 14.4% for VYM over three years (ETF Central), so do not compare those two figures.

Are VIG and VYM suitable for Canadian investors?

Both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and may face U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice; confirm with a tax professional.

Third-party sources

StockAnalysis · TotalRealReturns · ETF Central · Yahoo Finance · BestETF.

Methodology and limits

• VIG figures come from Vanguard’s fact sheet and investment profile (Sep 30, 2026) and Vanguard’s fund page (Nov 5, 2026). VYM figures come from Vanguard’s fact sheet (Sep 30, 2026) and ETF Central (Nov 2–3, 2026).
• Top-ten holdings and sector weights for both funds are Vanguard, Sep 30, 2026, so the dates match.
• Sector overlap of 81% is this page’s sum of the smaller sector weight in each fund. Fund-level weight overlap, daily-move correlation, VYM SEC yield, spread, premium or discount, shares outstanding, VIG beta and capital gains history were not captured.
• Calendar-year returns for VIG (Yahoo Finance) and VYM (TotalRealReturns) come from two sources; VIG 2021 was not captured, so the table starts in 2022.
• Growth of $10,000 is derived from each issuer’s annualized NAV returns; dollar values are approximate.
• Drawdowns: VIG is BestETF’s 10-year worst decline; VYM is ETF Central’s three-year maximum drawdown. They cover different periods and are third party.
• Index rules summarize provider descriptions; confirm eligibility rules, caps and rebalance dates in each prospectus.

Pathways, not rankings or recommendations.