Which Vanguard Dividend ETF Is the Better Buy: VIG or VYM?
One ETF leans into technology and dividend growth, while the other prioritizes higher income and lower volatility. Which approach better fits your portfolio?
Which Vanguard Dividend ETF Is the Better Buy: VIG or VYM?
Overview
Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) focuses on companies with a history of increasing their payouts, while Vanguard High Dividend Yield ETF (NYSEMKT:VYM) targets a broader group of stocks that offer a higher current yield.
Vanguard offers two primary options for equity income investors, but their underlying philosophies differ significantly. This comparison examines whether VIG’s focus on dividend consistency provides a better balance of growth and stability than VYM’s high-yield screening in the current market environment.
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.
Source
Originally published at www.fool.com.
