Both of These Two Vanguard ETFs Both Offer Low Fees. But Which One Has Delivered the Better Five-Year Return?
VYM offers 2.3% yield and stronger 1-year returns, while VIG targets dividend growers with tech-heavy exposure. Both charge just 0.04% in fees.
Overview
Investors choosing between the Vanguard High Dividend Yield ETF (NYSEMKT:VYM) and the Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) are essentially weighing a higher current income stream against the potential for companies to consistently raise their payouts.
Both funds provide income and stability, but they target different corporate behaviors: VYM seeks currently high yields, while VIG focuses on dividend growth over at least 10 consecutive years. This leads to distinct sector weights and risk profiles despite their shared low-cost pedigree within the Vanguard family.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.