VYM pays higher dividends, but VIG has delivered better total returns over 10 years for retirees.
Vanguard's VYM ETF offers retirees significantly higher quarterly income with a 2.35% yield compared to VIG's 1.51%, generating about $8,400 more annually on a $1 million investment. However, VIG has outperformed VYM in total returns over the past decade, with a 12.87% annualized return versus 11.28%, due to its focus on dividend growth stocks with stronger earnings and higher valuations. VYM targets high-yield, value stocks with lower valuations but more economic cyclicality. Retirees prioritizing income may prefer VYM, while those focused on long-term wealth growth might choose VIG or a balanced split of both ETFs.
Vanguard's VYM ETF offers retirees significantly higher quarterly income with a 2.35% yield compared to VIG's 1.51%, generating about $8,400 more annually on a $1 million investment. However, VIG has outperformed VYM in total returns over the past decade, with a 12.87% annualized return versus 11.28%, due to its focus on dividend growth stocks with stronger earnings and higher valuations. VYM targets high-yield, value stocks with lower valuations but more economic cyclicality. Retirees prioritizing income may prefer VYM, while those focused on long-term wealth growth might choose VIG or a balanced split of both ETFs.
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