As people have been more interested in dividend investing in recent weeks, they have come across two separate dividend ETFs that appear promising: VIG and VYM. Because they both provide an enticing alternative to more expensive funds like DGRO and NOBL, I felt it would be worthwhile to investigate which ETF is genuinely superior, vig vs vym.
VYM and VIG both have a 0.06 per cent expenditure ratio. VIG is less diverse than VYM, with about 198 stocks vs over 300 for VYM.
This comparison between vig vs vym is more detailed.
The Differences:
Ratio of Expenses
Both VIG and VYM have a cost ratio of 0.06 per cent, which is considered low in the world of ETFs. With a 0.06 percent expense ratio, a $10,000 investment in VIG would cost you about $6 in fees. That's something no mutual fund can match!
Both ETFs offer meagre costs when contrasted to vig vs vym etf, such as DGRO and NOBL. At 0.08 per cent, DGRO is still a bargain, but NOBL costs a staggering 0.35 per cent. No matter how good or bad the cost of VYM and VIG may be compared, the expense ratio of VYM is still very cheap!
Assets
VIG has a net asset value of $36.8 billion, making it one of the most significant mutual funds available.
VYM has assets worth $24.3 billion, which is almost two-thirds the size of VIG. Both funds have enough support and trading activity that liquidity and trading volume should never be an issue for either.
Index
is indicator comprises a chosen set of securities that have paid rising yearly recurring dividend payments for at least ten years in a row. Vanguard's VIG uses a full-replication method to monitor this index, attempting to replicate the index's behaviour fully.
This index comprises a small number of stocks expected to pay out higher-than-average dividends in the future year. In terms of the index, VYM also employs a full-replication strategy.
In other terms, because dividend estimates vary often, you don't honestly know which firms you're investing in over the long run. In my perspective, VIG has an edge here thanks to the NASDAQ US Dividend Achievers' steady index.
The Date of Inception
VIG was founded in the early months of 2006. This was a few times before the 2008 market crisis to learn about its past performance and behaviour during economic slowdowns. There is plenty of past performance data to watch out for as the company approaches its 14th anniversary this year.
VYM began in late 2006, a few months after VIG. We'll have good data sets to evaluate both funds' results properly later on because they were both launched at almost the same time.
Wrapping Up,
In this article, we have talked about which one to choose between, vym or vig. Hope this article will help you to choose the best one for you.