CGDG vs VYM
Capital Group Dividend Growers ETF vs Vanguard High Dividend Yield ETF
Which is better, CGDG or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. CGDG is less concentrated, with 25.6% of the fund in its ten largest positions against 25.9%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | CGDG | VYM |
|---|---|---|
| Expense Ratio | 0.47% | 0.04%Best |
| AUM | $5.7B | $81.6B |
| Dividend Yield | 2.22% | 2.22% |
| Holdings | 110 | 613 |
| YTD Return | +7.44% | +13.15%Best |
| 1Y Return | +13.05% | +17.82%Best |
| 3Y Return (annualized) | +17.89% | +17.99%Best |
| 5Y Return (annualized) | - | +12.16% |
| Volatility (annualized) | 8.7%Best | 10.7% |
| Max Drawdown | -10.5%Best | -14.5% |
| $10,000 over 3 years | $16,384 | $16,958Best |
| Top 10 Weight | 25.6%Best | 25.9% |
| Fund Family | Capital Group (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Sep 26, 2023 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Sep 28, 2023 to Sep 10, 2026 (3 years).
CGDG vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
CGDG vs VYM Performance
Capital Group Dividend Growers ETF (CGDG) is an ETF from Capital Group (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year CGDG returned +13.05% while VYM returned +17.82%. Year to date, CGDG is up 7.44% versus a gain of 13.15% for VYM.
Over three years, CGDG compounded at +17.89% per year against +17.99% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 10.7% 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 -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. 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 2.22% against 2.22% for VYM.
Holdings Overlap
39.1% of CGDG's money is in holdings VYM also owns. 35.7% of VYM's money is in holdings CGDG also owns.
The two portfolios partly overlap.
37 positions in common, counted across the 103 positions we hold weights for in CGDG and 603 in VYM, against full books of 110 and 613.
What only one of them owns
Our book lists 531 positions for VYM that do not appear in our book for CGDG (61.8% of the fund), and 10 for CGDG that do not appear in VYM (12.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in CGDG | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 4.52% | 7.29% | 2.77% |
| PMPhilip Morris International Inc. | 3.86% | 1.17% | 2.69% |
| JPMJpmorgan Chase & Co. | 1.17% | 3.38% | 2.21% |
| ABBVAbbvie Inc. | 1.86% | 1.85% | 0.01% |
| JNJJohnson & Johnson | 0.80% | 2.54% | 1.74% |
| XOMExxon Mobil Corp. | 0.95% | 2.36% | 1.41% |
| MRKMerck & Co. Inc. | 1.23% | 1.32% | 0.09% |
| BACBank Of America Corp. | 0.80% | 1.56% | 0.76% |
| UNHUnitedhealth Group Inc. | 0.65% | 1.56% | 0.91% |
| HDHome Depot Inc/The | 0.74% | 1.46% | 0.72% |
39.1% of CGDG is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $43 a year on a $10,000 investment.
Which performed better, CGDG or VYM?
Over the past year CGDG returned +13.05% vs +17.82% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, CGDG or VYM?
VYM has been the more volatile fund at 10.7% annualized versus 8.7% for CGDG. Worst drawdown: CGDG -10.5% vs VYM -14.5%.
Should I hold both CGDG and VYM?
CGDG and VYM have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between CGDG and VYM?
39.1% of CGDG's money is in holdings VYM also owns. 35.7% of VYM's is in holdings CGDG also owns. They hold 37 positions in common, counted across the 103 positions we hold weights for in CGDG and 603 in VYM.
Which pays a higher dividend, CGDG or VYM?
CGDG yields 2.22% while VYM yields 2.22%, so CGDG currently pays the higher dividend yield.
Is VYM better than CGDG?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. CGDG is less concentrated, with 25.6% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.