VUG vs VYM
Vanguard Morningstar Growth ETF vs Vanguard High Dividend Yield ETF
Which is better, VUG or VYM?
Large Cap Growth against Large Cap Value.
VUG has a lower expense ratio. VUG led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 63.6%.
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 | VUG | VYM |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.04% |
| AUM | $219.5B | $81.6B |
| Dividend Yield | 0.38% | 2.22% |
| Holdings | 146 | 613 |
| YTD Return | +7.68% | +12.87%Best |
| 1Y Return | +10.16% | +17.25%Best |
| 3Y Return (annualized) | +23.26%Best | +17.66% |
| 5Y Return (annualized) | +11.92% | +11.98%Best |
| Volatility (annualized) | 17.3% | 14.5%Best |
| Max Drawdown | -51.4%Best | -58.8% |
| $10,000 over 5 years | $17,561 | $17,608Best |
| Top 10 Weight | 63.6% | 26.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Jan 26, 2004 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 15, 2026 (19.8 years).
VUG 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 19.8 years both funds cover.
VUG vs VYM Performance
Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year VUG returned +10.16% while VYM returned +17.25%. Year to date, VUG is up 7.68% versus a gain of 12.87% for VYM.
Over three years, VUG compounded at +23.26% per year against +17.66% for VYM; over five years the annualized figures are +11.92% and +11.98% respectively. Across the full 20-year window we track, VUG has the edge at +11.89% annualized vs +6.90%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 17.3% compared with 14.5% 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 -51.4% for VUG and -58.8% 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VUG charges 0.03% per year while VYM charges 0.04%. On a $10,000 position that is $3 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, VUG currently yields 0.38% against 2.22% for VYM.
Holdings Overlap
7.8% of VUG's money is in holdings VYM also owns. 12.8% of VYM's money is in holdings VUG also owns.
VYM and VUG share little of their money.
17 positions in common, counted across the 147 positions we hold weights for in VUG and 557 in VYM, against full books of 146 and 613.
What only one of them owns
Our book lists 511 positions for VYM that do not appear in our book for VUG (84.3% of the fund), and 129 for VUG that do not appear in VYM (92.0%).
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 VUG | Weight in VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 4.46% | 7.35% | 2.89% |
| ORCLOracle Corp - Common | 0.63% | 0.90% | 0.27% |
| TXNTexas Instrument Inc | 0.36% | 1.02% | 0.66% |
| MCDMcdonald'S Corp | 0.55% | 0.78% | 0.23% |
| SBUXStarbucks Corp | 0.35% | 0.49% | 0.14% |
| BXBlackstone Group Inc. Class A | 0.15% | 0.39% | 0.24% |
| RCLRoyal Caribbean Cruises | 0.13% | 0.32% | 0.19% |
| TRGPTarga Resources Corp Preferred | 0.18% | 0.23% | 0.05% |
| FASTFastenal Co. | 0.17% | 0.22% | 0.05% |
| YUMYum! Brands, Inc. | 0.13% | 0.17% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of VUG and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VUG or VYM?
VUG has an expense ratio of 0.03% while VYM charges 0.04%. VUG is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VUG or VYM?
Over the past year VUG returned +10.16% vs +17.25% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), VUG annualized +11.89% vs +6.90% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VUG or VYM?
VUG has been the more volatile fund at 17.3% annualized versus 14.5% for VYM. Worst drawdown: VUG -51.4% vs VYM -58.8%.
Should I hold both VUG and VYM?
VUG and VYM have a monthly-return correlation of 0.78, 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 VUG and VYM?
12.8% of VYM's money is in holdings VUG also owns. 12.8% of VYM's is in holdings VUG also owns. They hold 17 positions in common, counted across the 147 positions we hold weights for in VUG and 557 in VYM.
Which pays a higher dividend, VUG or VYM?
VUG yields 0.38% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than VUG?
VUG has a lower expense ratio. VUG led over 3Y and the full window, VYM over 1Y and 5Y. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.