VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You?

VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You?

Jessica Mitacek, MarketBeat

Sun, August 23, 2026 at 7:05 PM GMT+3 4 min read

Key Points

• Interested in Vanguard Dividend Appreciation ETF? Here are five stocks we like better.

• Vanguard now manages about $4.7 trillion in ETF assets and briefly overtook BlackRock as the largest U.S. ETF provider.

• Vanguard offers 116 ETFs, including three dividend-focused funds, VIG, VYM, and VYMI, each with distinct yield and growth strategies.

• VYMI, Vanguard's international high-dividend fund, currently offers the highest yield at 3.42% and has posted the strongest year-to-date gain of nearly 17%.

Vanguard has cemented itself as one of the biggest names in exchange-traded funds (ETFs). The investment advisory firm and global asset manager briefly surpassed BlackRock (NYSE: BLK) as the largest U.S. ETF provider by assets.

In fact, the firm now manages around $4.7 trillion in assets just in its ETFs, with the Vanguard S&P 500 ETF (NYSEARCA: VOO) becoming the first fund ever to surpass $1 trillion in assets under management (AUM) in June 2026.

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The company debuted its first-ever ETF, the Vanguard Total Stock Market ETF (NYSEARCA: VTI), in 2001. It has since built on that success, now offering 116 ETFs, including an array of reputable and diverse dividend-focused funds for income investors.

VIG: Dividend Appreciation

By tracking the S&P U.S. Dividend Growers Index, the Vanguard Dividend Appreciation ETF (NYSEARCA: VIG) targets high-quality companies with proven track records of increasing their dividend payments over time rather than chasing the highest yields.

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The fund holds all the index's stocks in approximately the same proportions as their index weightings.

With more than $112 billion in AUM and an expense ratio of just 0.04%, the VIG currently yields 1.47%, or $3.58 per share annually.

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The VIG focuses on U.S.-based Dividend Achievers and Dividend Contenders—companies that have at least 10 consecutive years of increasing annual regular dividend payments—while excluding the top 25% highest-yielding stocks to avoid risk.

Shareholders get exposure to traditional dividend stocks like Johnson & Johnson (NYSE: JNJ) alongside high-growth tech stocks like Broadcom (NASDAQ: AVGO), the fund's largest current allocation, with a weighting of 4.52%.

Because of that strategy, the VIG is also capable of providing strong share appreciation. The fund has gained around 11% year to date (YTD).

VYM: High Yield From U.S. Companies

The Vanguard High Dividend Yield ETF (NYSEARCA: VYM) is an exchange-traded fund designed to track the performance of the FTSE High Dividend Yield Index.

The fund provides exposure to U.S. companies that are forecast to pay above-average dividends, offering investors a diversified way to access income-generating equities.

With about $83 billion in AUM, the fund carries an expense ratio of 0.04%.

The VYM primarily focuses on large-cap stocks across a range of sectors.

Financials is currently the ETF's largest sector exposure at 21.8%, followed by tech at 17% and healthcare at 13.1%.

Top holdings include JPMorgan Chase (NYSE: JPM), Broadcom, and Johnson & Johnson.

What sets VYM apart from VIG is its dividend.

The fund currently yields 2.2%, or $3.63 per share annually. That high yield, combined with targeted value stock exposure has made the ETF extremely popular among institutional investors. with more than $24 billion in inflows over the past 12 months against just over $3 billion in outflows.

In addition to its notable yield, the VYM has outperformed the S&P 500 with a YTD gain of about 15%.

VYMI: High Yield With a Global Twist

Like the VYM, the Vanguard International High Dividend Yield ETF (NYSEARCA: VYMI) targets high yield but through a global lens.

The fund has apprximately $21.3 billion in AUM, an expense ratio of 0.07%—the highest of the three ETFs on this list—and mostly invests in high-yield international equity.

The VYMI tracks a market-cap-weighted index of developed and emerging market firms (ex-U.S.) that are forecast to pay above-average dividends over the next 12 months.

Now in its 10th year, the ETF's portfolio includes names like London-based HSBC Holdings (NYSE: HSBC), Swiss multinational pharmaceutical company Novartis (NYSE: NVS), and the Royal Bank of Canada (TSE: RY).

However, the largest geographic exposure is from Japan, which accounts for nearly 12% of the VYMI's holdings.

The fund is of particular interest to investors looking for substantial and immediate income.

VYMI currently yields 3.42%—the highest of all three Vanguard ETFs profiled herein—or $3.60 per share annually.

As international equities continue to outperform their U.S. counterparts, so far in 2026, the VYMI has outperformed the three other ETFs on this list, posting a YTD gain of nearly 17%.

The article "VIG, VYM, and VYMI: Which Vanguard Dividend ETF Is Right for You?" was originally published by MarketBeat.

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