Vanguard offers some of the world's best dividend ETFs with industry-leading low costs. Here is every Vanguard dividend fund analyzed and compared.
Vanguard's unique mutual ownership structure means profits go back to fund shareholders as lower expense ratios. Most Vanguard dividend ETFs charge 0.06-0.10%.
Founded by Jack Bogle in 1975, Vanguard manages over $8 trillion in global assets. Their investor-first philosophy has earned unmatched trust among long-term investors.
Vanguard's patented ETF-mutual fund structure allows them to minimize capital gains distributions, making their funds among the most tax-efficient available.
| ETF | Focus | Yield | Expense | Holdings | AUM |
|---|---|---|---|---|---|
| VYM | High Yield (U.S.) | 2.85% | 0.06% | 553 | $55B+ |
| VIG | Div. Appreciation (U.S.) | 1.75% | 0.06% | 338 | $82B+ |
| VIGI | Div. Appreciation (Int'l) | 2.10% | 0.15% | 534 | $6B+ |
| VYMI | High Yield (Int'l) | 4.25% | 0.22% | 1,420 | $8B+ |
| VNQ | Real Estate (REITs) | 3.85% | 0.13% | 162 | $35B+ |
| VXUS | Total Int'l (w/ divs) | 3.15% | 0.08% | 8,500+ | $68B+ |
Yield
2.85%
Expense Ratio
0.06%
Holdings
553
10Y Return
10.2%
VYM is Vanguard's flagship high-dividend-yield ETF, holding 553 U.S. stocks selected by forecasted yield. Tracking the FTSE High Dividend Yield Index, it provides the broadest dividend exposure of any Vanguard fund. Top holdings include Broadcom, JPMorgan Chase, ExxonMobil, and Procter & Gamble.
Yield
1.75%
Expense Ratio
0.06%
Holdings
338
10Y Return
11.8%
VIG is Vanguard's largest dividend ETF by assets ($82B+), focusing on companies with at least 10 consecutive years of dividend increases. Unlike VYM, VIG prioritizes dividend growth over current yield, resulting in a portfolio that tilts toward quality growth companies. Top holdings include Apple, Microsoft, Broadcom, JPMorgan, and UnitedHealth.
VIG vs VYM: VIG has outperformed VYM on total returns by about 1.5% annually over the past decade, largely due to its higher tech allocation. However, VYM generates 63% more income (2.85% vs 1.75% yield). Choose VIG for growth, VYM for income.
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Yield
2.10%
Expense Ratio
0.15%
Holdings
534
5Y Return
5.8%
VIGI is the international counterpart to VIG, holding non-U.S. companies with at least 7 years of consecutive dividend growth. Top holdings include Novo Nordisk, Roche, SAP, Nestle, and ASML. It provides exposure to developed and emerging market dividend growers across 40+ countries.
Yield
4.25%
Expense Ratio
0.22%
Holdings
1,420
5Y Return
4.2%
VYMI is VYM's international sibling, offering the highest yield among Vanguard's dividend ETFs at 4.25%. With over 1,400 holdings across developed and emerging markets, it provides massive global income exposure. Top holdings include Nestle, Samsung, TotalEnergies, Shell, and HSBC.
Yield
3.85%
Expense Ratio
0.13%
Holdings
162
10Y Return
5.8%
VNQ provides exposure to U.S. REITs (Real Estate Investment Trusts), which are required by law to distribute at least 90% of taxable income as dividends. This makes VNQ one of the highest-yielding Vanguard ETFs. Top holdings include Prologis, American Tower, Equinix, Crown Castle, and Simon Property Group.
Tax Note: REIT dividends are generally taxed as ordinary income (not qualified dividends), making VNQ most tax-efficient when held in IRAs or 401(k)s. The 20% QBI deduction can partially offset this for taxable accounts.
VYM 50%
U.S. High Yield
VYMI 20%
Int'l High Yield
VNQ 15%
Real Estate
BND 15%
Bonds
Best for: Retirees seeking reliable income with moderate growth
VIG 40%
U.S. Div Growth
VYM 30%
U.S. High Yield
VIGI 20%
Int'l Div Growth
VNQ 10%
Real Estate
Best for: Investors 10+ years from retirement building growing income
VYM 30%
U.S. High Yield
VYMI 30%
Int'l High Yield
VNQ 20%
Real Estate
VIGI 20%
Int'l Div Growth
Best for: Maximum income diversification across geographies and asset classes
| ETF | 1Y Return | 5Y Return | 10Y Return | Yield | Div Growth |
|---|---|---|---|---|---|
| VIG | 11.2% | 11.8% | 11.8% | 1.75% | 9.5% |
| VYM | 9.8% | 10.4% | 10.2% | 2.85% | 5.8% |
| VNQ | 5.4% | 4.2% | 5.8% | 3.85% | 3.2% |
| VIGI | 6.1% | 5.8% | N/A | 2.10% | 8.2% |
| VYMI | 7.3% | 4.2% | N/A | 4.25% | 4.1% |
Returns are annualized total returns including reinvested dividends. Past performance does not guarantee future results.
VIG has delivered the best total returns among Vanguard dividend ETFs, benefiting from its quality-growth tilt. VYM follows with strong risk-adjusted returns. International funds (VIGI, VYMI) have lagged due to the strong U.S. dollar and outperformance of U.S. markets, though they provide important diversification.
For most investors, VIG (Dividend Appreciation) is the best single choice due to its strong total returns, quality-focused methodology, and ultra-low 0.06% expense ratio. For investors who prioritize current income over growth, VYM (High Dividend Yield) is the better pick with its 2.85% yield.
Choose VIG if you are building wealth long-term and do not need high current income. VIG has higher total returns and more tech exposure. Choose VYM if you want more income now -- it yields 63% more (2.85% vs 1.75%). Many investors hold both: VIG in taxable accounts and VYM in tax-advantaged accounts.
International diversification is recommended by most financial advisors. VIGI and VYMI provide access to high-quality dividend payers outside the U.S. that you cannot get from VIG or VYM. A 70/30 U.S./international split is a common allocation.
VNQ offers a strong 3.85% yield from REITs, but keep in mind that REIT dividends are taxed as ordinary income, not at the lower qualified dividend rate. VNQ is best held in tax-advantaged accounts (IRA, 401k). It also provides inflation protection since rents tend to rise with inflation.
SCHD (Schwab) offers higher yield (3.45%) and faster dividend growth (12%) than VYM (2.85%, 5.8% growth) and VIG (1.75%, 9.5% growth). However, Vanguard offers international options (VIGI, VYMI) and REIT exposure (VNQ) that Schwab does not. Many investors combine SCHD with Vanguard international funds.