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Comparing VYM Vs. VIG: Which Vanguard ETF Is Best For You?

Vanguard is one of the most popular ETF managers and has an impressive history in terms of its performance.

Comparing two exchange-traded funds (ETFs) from Vanguard, let’s have a VYM vs. VIG showdown.

VYM: Vanguard High Dividend Yield ETF

VYM tracks the FTSE High Dividend Yield Index. The FTSE tracks the stocks that offer higher-than-average dividend profits.

VIG: Vanguard Dividend Appreciation Index  Fund ETF

VIG is a dividend growth ETF that tracks the NASDAQ US Dividend Achievers Select Index.

Key Differences

VYM seeks to pay investors now, while VIG is investing in companies that offer to pay dividends in the future.

If we consider the volatility of VIG, it is 3.96% monthly and 12.74% annually. The volatility of VYM is factored at 4.11% monthly and 14.23% annually.

Risk Analysis

Fees

The expense ratio of both dividend-oriented funds is set at 0.06%. If you consider the other investment options in the ETF landscape, VIG and VYM are significantly cheaper.

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