CGDG vs VYM
Capital Group Dividend Growers ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | CGDG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.04% | |
| AUM | $5.5B | $79.0B | |
| Dividend Yield | 2.27% | 2.86% | |
| Holdings | 108 | 568 | |
| YTD Return | +9.64% | +16.53% | |
| 1Y Return | +17.51% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 8.7% | 14.6% | |
| Max Drawdown | -10.5% | -58.8% | |
| Fund Family | Capital Group (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 26, 2023 | Nov 10, 2006 |
CGDG vs VYM Performance
Capital Group Dividend Growers ETF (CGDG) is a ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CGDG returned +17.51% while VYM returned +25.03%. Year to date, CGDG is up 9.64% versus a gain of 16.53% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.7% for CGDG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -10.5% for CGDG and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
CGDG charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, CGDG currently yields 2.27% against 2.86% for VYM.
Holdings Overlap
CGDG and VYM share 40 holdings out of 620 unique holdings combined, representing a 23.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CGDG or VYM?
CGDG has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, CGDG or VYM?
Over the past year CGDG returned +17.51% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), CGDG annualized +19.27% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, CGDG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.7% for CGDG. Worst drawdown: CGDG -10.5% vs VYM -58.8%.
Should I hold both CGDG and VYM?
CGDG and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CGDG and VYM?
CGDG and VYM share 40 common holdings with a 23.9% weight overlap. Combined, they hold 620 unique securities.
Which pays a higher dividend, CGDG or VYM?
CGDG yields 2.27% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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