ETF Versus

VUG vs VYM

Vanguard Growth Index Fund ETF Shares vs Vanguard High Dividend Yield Index Fund ETF Shares

Last updated: 2026-04-10

VUG

Vanguard Growth Index Fund ETF Shares (VUG) is an exchange-traded fund that provides exposure to large-cap U.S. growth stocks with above-average earnings potential. It charges a very low expense ratio of 0.03%. The fund offers a modest dividend yield of 0.43%. Launched in 2004, the fund has a 22-year track record.

AUM: $193.7B ER: 0.03% Yield: 0.43% Since: Jan 26, 2004
VYM

Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is an exchange-traded fund that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 2.30%. Launched in 2006, the fund has a 20-year track record.

AUM: $74.7B ER: 0.04% Yield: 2.30% Since: Nov 10, 2006

Quick Verdict

Both funds have nearly identical expense ratios (0.03% vs 0.04%), so fees are not a differentiator here. VUG has edged ahead over the past year (30.1% vs 28.1%). Income investors may prefer VYM for its higher yield (2.3% vs 0.4%).

Key Metrics

Metric VUG VYM
Expense Ratio 0.03% 0.04%
Dividend Yield 0.4% 2.3%
Fund Family N/A N/A
Category US Large Cap Growth US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

75 97 119 141 163 185 2021-04 2022-07 2023-10 2024-12 2026-04
VUG +68.9%
VYM +48.9%

Performance Comparison

Period VUG VYM Difference
1 Month -0.86% +1.58% -2.44%
3 Months -6.70% +3.41% -10.11%
6 Months -4.19% +9.40% -13.59%
YTD -5.49% +5.46% -10.95%
1 Year +30.07% +28.11% +1.96%
3 Years +86.72% +42.98% +43.74%
5 Years +68.85% +48.86% +19.99%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VUG Fees VYM Fees You Save
$10,000 10 years $60 $80 $20
$10,000 20 years $258 $344 $86
$10,000 30 years $835 $1,112 $277
$50,000 10 years $299 $399 $100
$50,000 30 years $4,176 $5,560 $1,385
$100,000 30 years $8,352 $11,121 $2,769

Risk Metrics

Based on 5 years of daily returns

Metric VUG VYM
Annualized Volatility 22.2% 14.1%
Max Drawdown -36.0% -17.5%
Sharpe Ratio 0.38 0.32

Dividend Comparison

Metric VUG VYM
Annual Dividend (per share) $1.99 $3.51
Dividend Yield 0.43% 2.30%
Distribution Frequency Quarterly Quarterly

Top Holdings

1 of top 9 holdings overlap (11% overlap in top holdings)

VUG Top Holdings

NameWeight
NVIDIA CorporationNVDA12.82%
Apple Inc.AAPL12.23%
Microsoft CorporationMSFT9.15%
Alphabet Inc.GOOG4.49%
Meta Platforms, Inc.META4.44%
Amazon.com, Inc.AMZN4.41%
Broadcom Inc.AVGO3.95%
Tesla, Inc.TSLA3.58%
Eli Lilly and CompanyLLY2.82%

VYM Top Holdings

NameWeight
Broadcom Inc.AVGO6.48%
JPMorgan Chase & Co.JPM3.36%
Exxon Mobil CorporationXOM2.83%
Johnson & JohnsonJNJ2.63%
Walmart Inc.WMT2.44%
AbbVie Inc.ABBV1.81%
The Procter & Gamble CompanyPG1.72%
The Home Depot, Inc.HD1.66%
Chevron CorporationCVX1.54%
Caterpillar Inc.CAT1.51%

Which One Should You Choose?

Choose VYM if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Related Comparisons