
VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You?
MarketBeat
Published: Aug 23, 2026, 04:06 PM
Sentiment Analysis
Vanguard now manages about $4.7 trillion in ETF assets and briefly overtook BlackRock as the largest U.S. ETF provider.
Vanguard offers 116 ETFs, including three dividend-focused funds, VIG, VYM, and VYMI, each with distinct yield and growth strategies.
VYMI, Vanguard's international high-dividend fund, currently offers the highest yield at 3.42% and has posted the strongest year-to-date gain of nearly 17%.
Vanguard has cemented itself as one of the biggest names in exchange-traded funds (ETFs).
The investment advisory firm and global asset manager briefly surpassed BlackRock as the largest U.S. ETF provider by assets.
In fact, the firm now manages around $4.7 trillion in assets just in its ETFs, with the Vanguard S& P 500 ETF becoming the first fund ever to surpass $1 trillion in assets under management (AUM) in June 2026.
The company debuted its first-ever ETF, the Vanguard Total Stock Market ETF, in 2001.
It has since built on that success, now offering 116 ETFs, including an array of reputable and diverse dividend-focused funds for income investors.
By tracking the S&P U.S. Dividend Growers Index, the Vanguard Dividend Appreciation ETF targets high-quality companies with proven track records of increasing their dividend payments over time rather than chasing the highest yields.
The fund holds all the index's stocks in approximately the same proportions as their index weightings.
With more than $112 billion in AUM and an expense ratio of just 0.04%, the VIG currently yields 1.47%, or $3.58 per share annually.
The VIG focuses on U.S.-based Dividend Achievers and Dividend Contenders —companies that have at least 10 consecutive years of increasing annual regular dividend payments—while excluding the top 25% highest-yielding stocks to avoid risk.
Shareholders get exposure to traditional dividend stocks like Johnson & Johnson alongside high-growth tech stocks like Broadcom, the fund’s largest current allocation, with a weighting of 4.52%.
Because of that strategy, the VIG is also capable of providing strong share appreciation.
The fund has gained around 11% year to date (YTD).
The Vanguard High Dividend Yield ETF is an exchange-traded fund designed to track the performance of the FTSE High Dividend Yield Index.
The fund provides exposure to U.S. companies that are forecast to pay above-average dividends, offering investors a diversified way to access income-generating equities.
With about $83 billion in AUM, the fund carries an expense ratio of 0.04%.
The VYM primarily focuses on large-cap stocks across a range of sectors.
Financials is currently the ETF’s largest sector exposure at 21.8%, followed by tech at 17% and healthcare at 13.1%.
Top holdings include JPMorgan Chase, Broadcom, and Johnson & Johnson.
What sets VYM apart from VIG is its dividend.
The fund currently yields 2.2%, or $3.63 per share annually.
That high yield, combined with targeted value stock exposure has made the ETF extremely popular among institutional investors.
with more than $24 billion in inflows over the past 12 months against just over $3 billion in outflows.
In addition to its notable yield...
Source: MarketBeat
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