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VYM vs. VIG

Vanguard High Dividend Yield ETF

VYM
$--
vs

Vanguard Dividend Appreciation ETF

VIG
$--

Correlation

0.98
VYMVanguard High Dividend Yield ETF
VIGVanguard Dividend Appreciation ETF

What is VYM?

Seeks to track the performance of the FTSE High Dividend Yield Index which measures the investment return of common stocks of companies characterized by high dividend yields. Provides a convenient way to track the performance of stocks with histories of above-average dividend yields. Follows a passively managed full-replication approach.

Snapshot
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VYM Vanguard High Dividend Yield ETF
VIG Vanguard Dividend Appreciation ETF
Inception date
Nov 10 2006
Apr 21 2006
Expense ratio
0.06%
0.06%
VYM and VIG have the same expense ratio, meaning it’s equally as costly to invest in either one.
Type
US Equities
US Equities
VYM targets investing in US Equities, while VIG targets investing in US Equities.
Fund owner
Vanguard
Vanguard
VYM is managed by Vanguard, while VIG is managed by Vanguard.
Volume (1m avg. daily)
$134,746,385
$157,665,108
Both VYM and VIG are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$48,466,955,232
$67,239,425,848
VYM has more assets under management than VIG by $18,772,470,616. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
FTSE High Dividend Yield Index
S&P U.S. Dividend Growers Index
VYM is based off of the FTSE High Dividend Yield Index, while VIG is based off of the S&P U.S. Dividend Growers Index
Inverse/Leveraged
No
No
VYM and VIG use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
VYM and VIG both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
Yes
Yes
Prospectus
Neither VYM nor VIG require a K1.
VYM and VIG’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toVYM

#CV

Controlling for Volatility

Category

Getting Defensive, Worried about Inflation?

Risk Rating

Moderate

Automated Strategies
Related toVIG

#RB

Rotating Bonds

Category

Getting Defensive, Diversification

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

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We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.