DIVB vs VYM

DIVB vs VYM

Which is better, DIVB or VYM?

Nearly the same fund. VYM costs less.

VYM has a lower expense ratio. DIVB led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 30.4%.

Lower Fees: VYMHigher Returns: DIVBLess Concentrated: VYM

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

MetricDIVBVYM
Expense Ratio0.05%0.04%Best
AUM$2.0B$81.6B
Dividend Yield2.02%2.22%
Holdings385613
YTD Return+28.90%Best+13.91%
1Y Return+33.69%Best+17.57%
3Y Return (annualized)+24.03%Best+18.12%
5Y Return (annualized)+13.87%Best+12.17%
Volatility (annualized)17.0%15.0%Best
Max Drawdown-36.9%-35.7%Best
$10,000 over 5 years$19,145Best$17,758
Top 10 Weight30.4%25.9%Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Value
InceptionNov 7, 2017Nov 10, 2006

Volatility and max drawdown are measured over the window both funds cover: Nov 9, 2017 to Sep 11, 2026 (8.8 years).

DIVB 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 8.8 years both funds cover.

DIVB vs VYM Performance

iShares Core Dividend ETF (DIVB) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year DIVB returned +33.69% while VYM returned +17.57%. Year to date, DIVB is up 28.90% versus a gain of 13.91% for VYM.

Over three years, DIVB compounded at +24.03% per year against +18.12% for VYM; over five years the annualized figures are +13.87% and +12.17% respectively. Across the full 9-year window we track, DIVB has the edge at +13.76% annualized vs +9.95%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DIVB has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 15.0% for VYM. 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 -36.9% for DIVB and -35.7% 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

DIVB charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, DIVB currently yields 2.02% against 2.22% for VYM.

Holdings Overlap

DIVB already in VYM92.2%
VYM already in DIVB64.2%

92.2% of DIVB's money is in holdings VYM also owns. 64.2% of VYM's money is in holdings DIVB also owns.

Most of DIVB is already inside VYM. Owning both mostly buys the same companies twice.

304 positions in common, counted across the 383 positions we hold weights for in DIVB and 603 in VYM, against full books of 385 and 613.

What only one of them owns

Our book lists 266 positions for VYM that do not appear in our book for DIVB (33.4% of the fund), and 73 for DIVB that do not appear in VYM (7.3%).

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

StockWeight in DIVBWeight in VYMDifference
JPMJpmorgan Chase & Co.2.79%3.38%0.59%
ADPAutomatic Data Processing, Inc.5.45%0.37%5.08%
IBMInternational Business Machines Corp.3.89%1.10%2.79%
ACNAccenture Plc4.53%0.32%4.21%
JNJJohnson & Johnson2.13%2.54%0.41%
XOMExxon Mobil Corp.2.24%2.36%0.12%
ABBVAbbvie Inc.1.74%1.85%0.11%
BACBank Of America Corp.1.56%1.56%0.00%
PGProcter & Gamble Company1.52%1.42%0.10%
UNHUnitedhealth Group Inc.1.30%1.56%0.26%

92.2% of DIVB 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.

DIVBVYM

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, DIVB or VYM?

DIVB has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option, by $1 a year on a $10,000 investment.

Which performed better, DIVB or VYM?

Over the past year DIVB returned +33.69% vs +17.57% for VYM, so DIVB leads on 1-year performance. Over the longest common window we track (9 years), DIVB annualized +13.76% vs +9.95% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, DIVB or VYM?

DIVB has been the more volatile fund at 17.0% annualized versus 15.0% for VYM. Worst drawdown: DIVB -36.9% vs VYM -35.7%.

Should I hold both DIVB and VYM?

DIVB and VYM have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.

What is the holdings overlap between DIVB and VYM?

92.2% of DIVB's money is in holdings VYM also owns. 64.2% of VYM's is in holdings DIVB also owns. They hold 304 positions in common, counted across the 383 positions we hold weights for in DIVB and 603 in VYM.

Which pays a higher dividend, DIVB or VYM?

DIVB yields 2.02% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.

Is VYM better than DIVB?

VYM has a lower expense ratio. DIVB led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.96. VYM is less concentrated, with 25.9% of the fund in its ten largest positions against 30.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.