If You're Looking for a Dividend Fund, Which Vanguard ETF Is the Better Buy, VYM or VIG?
Explore how these two popular funds differ in portfolio makeup, risk, and long-term performance to help refine your income investing strategy.
Overview
Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) targets companies with long records of growing dividends, while Vanguard High Dividend Yield ETF (NYSEMKT:VYM) focuses on stocks with higher current yields and a value tilt.
Both funds are staples in income-oriented portfolios, but they utilize different selection criteria to achieve their goals. The appreciation fund requires a 10-year track record of dividend increases, while the high-yield fund captures the highest-yielding portion of the market, resulting in distinct performance outcomes and risk profiles for long-term investors.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of June 30.
Source
Originally published at www.fool.com.