![]() You can read more about why I love Vanguard here. This combined with the fact that Vanguard investors also become shareholders of the fund they are invested in makes Vanguard an excellent choice as an ETF issuer. Not only do they provide extremely low-fee funds for investors, but their entire philosophy is based on providing investors with the best options available in the market to succeed. VIG and VYM are issued by Vanguard, one of my favorite ETF companies. Even though there are cheaper ETFs such as Vanguard’s VTI at 0.03%, both VIG’s and VYM’s expense ratio is very affordable! Issuer ![]() DGRO still comes in fairly inexpensive at 0.08% while NOBL charges a whopping 0.35%. No mutual fund can beat that!īoth ETFs have very low fees when compared to other players in the dividend ETF space such as DGRO and NOBL. An expense ratio of 0.06% means that you would pay around $6 in fees for a $10,000 investment in VIG. VIG and VYM both have an expense ratio of 0.06% which can be considered fairly cheap in the ETF world. The advantage here goes to VIG in my opinion due to the stable index of the NASDAQ US Dividend Achievers. In other words, you don’t really know which companies you are actually investing in over the long term as dividend forecasts may change frequently. Even on their website, FTSE remains rather vague about how exactly stocks are selected to be included in the index: When comparing both indexes tracked by VIG and VYM I find it striking that the NASDAQ US Dividend Achievers Select Index is much clearer defined than the FTSE® High Dividend Yield Index. VYM also makes us of a full-replication approach with regards to the index. This index is made up of a select number of securities based on the forecast of paying out above-average dividends in the coming year. The Vanguard High Dividend Yield ETF (VYM) tracks the FTSE® High Dividend Yield Index. Vanguard’s VIG tracks this index with a full-replication approach, aiming to fully mirror the index’s performance. This index is comprised of a select group of securities with at least ten consecutive years of increasing annual regular dividend payments. The Vanguard Dividend Appreciation ETF (VIG) tracks the NASDAQ US Dividend Achievers Select Index. Select Index FTSE High Dividend Yield Index Expense Ratio 0.06% 0.06% Issuer Vanguard Vanguard Inception Date Net Assets $35.8B $23.3B VYM vs. VIG – What’s The Difference? VIG VYM Name Vanguard Dividend Appreciation ![]() Finally, we’ll conclude with a comparison of VIG’s and VYM’s historical performance over the past decade. We’ll also conduct a risk analysis to measure which ETF provides more stability and fewer drawdowns over time. In this article, we’ll look at some of the key differences between the two ETFs in terms of the index they follow, their expense ratio and net assets.
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