vym vs vig

So, is VIG really that much better than VYM? This website uses cookies to improve your experience. It favors dividend stocks with higher yields, but lower dividend growth than VIG.

For investors who want exposure to only U.S. stocks, they can buy. The Fund seeks to track the performance of a benchmark index that measures the investment return of common stocks of companies that are characterized by high dividend yield. But here’s the kicker. This may be especially important to the conservative investor aiming for stability in growth. Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer. The stability of the industrial sector lends itself to this type of criteria. VIG’s heavy exposure to industrials is almost mirrored by VYM’s exposure to financial services, although not as heavily pronounced.

All information on this site is for informational and educational purposes only. read. VYM vs FDVV; Or use Finny Compare Wizard to create a comparison you’d like to see. VYM has underperformed the S&P 500 index historically. For investors who want to hold a collection of stocks with dividends that are likely to appreciate in the future, VIG is likely a better choice. For investors who want to hold a collection of stocks with dividends that are likely to appreciate in the future, VIG is likely a better choice. Both VYM and VIG are ETFs. to track your investments with their free Investment Checkup tool and Retirement Planner. VYM has a lower 5-year return than VIG (8.16% vs 13.92%). VIG was started in early 2006. VYM and VIG have the same expense ratio (0.06%). Provides a convenient way to track the performance of stocks of companies with a record of growing their dividends each year. The subject of this thread is VIG vs. VYM, which is, basically, whether an investor prefers a lower initial yield (VIG) with a distribution growth focus versus a higher initial yield (VYM) and a lower distribution growth rate. There are only two differences between the two funds: The reason these two ETFs differ in total number of stocks held and dividend yield is due to the outcomes they seek to achieve: Because VYM seeks to pay out high dividends to investors now, rather than at some point in the future, it has a higher dividend yield. Below is the comparison between VYM and VIG. Both VYM and VIG are ETFs. However, it is hard to say which ETF is really better than the other because they both are geared toward different investment objectives.

The chart above illustrates the hypothetical growth of $10,000 USD if invested at the inception of both ETFs in 2006: $10,000 in VIG would have resulted in around $28,000 today while VYM would have yielded around $23,800. Just looking at the graph we see how much VIG has outperformed VYM over time. While we’re at it, we can compare Vanguard’s VIG to the iShares Core Dividend Growth ETF (DGRO). Index funds outperform most individual stocks over the long haul. In 2019, I quit my day job as a data scientist because I started earning enough income through profitable websites to support my entire lifestyle. However, from 2010 to 2018, VYM offered higher annualized returns (11.66%) than VYM (10.88%). Vanguard themselves investigated the strategies, Ray Dalio All Weather Portfolio Review, ETF’s, & Leverage, Riding the HEDGEFUNDIE Adventure (UPRO/TMF) on M1 Finance, Golden Butterfly Portfolio Review and M1 Finance ETF Pie, Harry Browne Permanent Portfolio Review, ETFs, & Leverage, Treasury Bonds vs. Corporate Bonds – The Showdown, The 60/40 Portfolio Review and ETF Pie for M1 Finance, Bogleheads 3 Fund Portfolio Review and M1 Finance ETF Pie, The Best M1 Finance Dividend Pie for FIRE & Income Investors, Portfolio Asset Allocation by Age – Beginners to Retirees, The 5 Best Stock Brokers Online for Investing (2020 Review), The 4 Best Investing Apps for Beginners (2020 Review), The 7 Best Small Cap Value ETFs (3 From Vanguard). Right now, the steady dividend ETF (VIG) is even leading slightly. , Taylor Larimore gives several reasons for why index funds are better investment vehicles than individual stocks for most investors: Once you’re convinced of the benefits of stock index-fund investing, the next step is deciding, For investors who want to own a piece of every publicly traded stock in the world, they can buy something as broad as a total world stock index fund. I am not a financial advisor, portfolio manager, or accountant. VYM was started a bit later than VIG, in late 2006. VYM is composed of 419 individual stocks, compared to just 184 for VIG. Looking to open a 15 year investment that I can keep liquid. VIG and VYM both have an expense ratio of 0.06% which can be considered fairly cheap in the ETF world. It is interesting to see, however, that VIG outperformed during the crash of 2008 and the subsequent years in 2009 and 2010, while underperforming in most of the years since then. There are several other exchange-traded funds with high dividends that you might consider. It’s a completely free platform and it’s the only one I personally use on a monthly basis. Once you’re convinced of the benefits of stock index-fund investing, the next step is deciding which index fund(s) to invest in. Read my lengthier disclaimer here. The first thing that is apparent when looking at this chart is the striking difference in performance in times of economic downturns. I lead the Paid Search marketing efforts at Gild Group. Since VYM tracks the FTSE High Dividend Yield Index, shareholders will get exposure to more than 400 U.S. dividend paying stocks. VYM and VIG have the same expense ratio (0.06%). This category only includes cookies that ensures basic functionalities and security features of the website.

Since they both offer an attractive alternative to more expensive funds such as DGRO and NOBL I thought it was worth taking a closer look at them to see which ETF is actually better, VIG or VYM? Compare fees, performance, dividend yield, holdings, technical indicators, and many other metrics to make a better investment decision. Two of the most popular dividend-oriented ETF’s are the Vanguard Dividend Appreciation ETF (VIG) and the Vanguard High Dividend Yield ETF (VYM). In my opinion, it … In The Bogleheads’ Guide to the Three-Fund Portfolio, Taylor Larimore gives several reasons for why index funds are better investment vehicles than individual stocks for most investors: 1. You also have the option to opt-out of these cookies. There are other options for dividends in the ETF universe. REITs are excluded from VYM as well so you will see no exposure to the real estate sector here. VIG and VYM are issued by Vanguard, one of my favorite ETF companies. VIG is better than VYM in terms of overall returns. Please discuss all financial and investment decisions with a registered investment advisor (RIA). For investors who are seeking a higher dividend now, VYM is likely a better choice since it offers a higher dividend yield.

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