Vanguard VYM Provides Greater Diversification Compared to NOBL
Comparison of ETFs: The Vanguard High Dividend Yield ETF (VYM) and ProShares - S&P 500 Dividend Aristocrats ETF (NOBL) differ in cost, breadth, and yield, with VYM holding 589 stocks and charging lower fees compared to NOBL's focus on S&P 500 dividend consistency.
Performance Metrics: Over the past five years, VYM outperformed NOBL with a total return of 98.5% compared to NOBL's 53.1%, attributed to lower fees and a broader stock selection outside the S&P 500.
Investment Strategies: VYM tracks the FTSE All-World High Dividend Yield Index, focusing on companies with above-average dividend yields, while NOBL targets S&P 500 companies that have consistently raised dividends for at least 25 years.
Sector Allocation: VYM has significant allocations in Financial Services, Technology, and Healthcare, while NOBL's holdings are more concentrated in Consumer Defensive, Industrials, and Financial Services, with each stock equally weighted in the portfolio.
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Top Income Opportunities for 2026: Dividend Stocks, Energy Pipelines, and More Recommended Choices
- Bond Market Performance: The bond market experienced its best year since 2020, surprising income investors who were losing hope.
- Future Outlook: Despite some emerging risks, the outlook for the bond market in 2026 remains positive.
VYM vs. FDVV: A Comparison of Yield, Costs, and Risk for These Popular Dividend ETFs
Cost and Structure Comparison: VYM is more affordable with a lower expense ratio (0.06%) and holds a broader range of 566 stocks, while FDVV has a higher expense ratio (0.15%) and is more concentrated with only 107 holdings, primarily in technology.
Dividend Yield and Income Potential: FDVV offers a higher dividend yield of 3.02% compared to VYM's 2.42%, making it more appealing for income-focused investors, despite the higher fees potentially reducing net income.
Risk and Volatility: VYM has lower volatility and a shallower drawdown over the past five years, focusing more on financial services, while FDVV's concentration in technology leads to higher volatility and risk.
Investment Strategy Differences: VYM employs a passive, full-replication approach tracking the FTSE High Dividend Yield Index, whereas FDVV uses a sector-constrained strategy that tilts towards technology and consumer defensive sectors for potentially higher yields.
VIG vs. VYM: Which Vanguard Dividend ETF Is the Superior Investment?
Vanguard ETFs Overview: The Vanguard Dividend Appreciation ETF (VIG) focuses on long-term dividend growth stocks, while the Vanguard High Dividend Yield ETF (VYM) targets stocks with above-average yields, making them popular choices for conservative dividend stock exposure.
Performance Comparison: VYM offers a higher yield of 2.4% compared to VIG's 1.6%, and in a weakening economic environment, VYM's value-oriented nature may provide better performance due to its lower price-to-earnings ratio.
Sector Allocations: VIG has a significant allocation to technology (27.8%), which may pose risks if investor confidence declines, while VYM is more diversified across sectors, including financials and industrials, making it appear more traditional for dividend funds.
Current Preference: Given the current economic outlook and labor market challenges, the author prefers the Vanguard High Dividend Yield ETF (VYM) over the Vanguard Dividend Appreciation ETF (VIG) for its potential to outperform in a slowing economy.
VYM vs. FDVV: Which High-Yield Dividend ETF Is the Superior Option for Investors?
Expense Ratios and Stock Holdings: VYM has a lower expense ratio and holds 566 stocks, providing greater diversification, while FDVV has a higher dividend yield but is more volatile and holds only 107 stocks with a significant tilt towards technology.
Performance Comparison: Over the past five years, VYM has experienced smaller drawdowns compared to FDVV, which has shown higher total returns but also greater price swings, indicating a trade-off between risk and reward.
Sector Exposure: VYM's largest sector exposures are in financial services, technology, and healthcare, while FDVV is heavily weighted towards technology, which can influence both yield and risk characteristics.
Investment Considerations: For investors seeking stability and lower fees, VYM may be preferable, whereas those willing to accept more volatility for potentially higher earnings might find FDVV more attractive.
3 Vanguard ETFs to Invest $500 in and Keep for the Long Term
Vanguard ETFs Performance: The Vanguard Growth ETF (VUG) has consistently outperformed the S&P 500 since its inception, achieving an 874% return compared to the S&P's 490%. It is heavily invested in tech stocks, which have driven much of its growth.
Dividend Yield of VYM: The Vanguard High Dividend Yield ETF (VYM) has averaged a 3% dividend yield over the past decade, currently offering a yield of 2.4%. It includes companies from various sectors, providing a good complement to growth-focused ETFs.
Investment in VOO: The Vanguard S&P 500 ETF (VOO) is favored for its low expense ratio of 0.03% and its ability to mirror the performance of the broader U.S. economy, making it a solid long-term investment option.
Stock Advisor Recommendations: The Motley Fool's Stock Advisor has identified 10 top stocks for investment, which have historically outperformed the market, suggesting that investors consider these options alongside Vanguard ETFs for potentially higher returns.
Looking to Earn $10,000 in Passive Income? This Vanguard ETF Might Be Your Solution.
Vanguard High Dividend Yield ETF Overview: The Vanguard High Dividend Yield ETF (VYM) focuses on companies with high forecast dividend yields, averaging a 3% yield over the past decade and total annual returns of approximately 11.5%.
Passive Income Potential: Investing in dividend stocks or ETFs like VYM can generate passive income, with the potential to reach $10,000 in annual income requiring an investment of around $333,334, achievable through consistent monthly contributions over time.
Investment Strategy: By investing consistently, such as $500 monthly, one could reach the target investment amount in about 19 years, highlighting the power of compound earnings in growing investments.
Stock Advisor Recommendations: The Motley Fool's Stock Advisor has identified 10 top stocks for investment, which have historically outperformed the market, suggesting that VYM may not be the best option compared to these recommended stocks.
Top Income Opportunities for 2026: Dividend Stocks, Energy Pipelines, and More Recommended Choices
- Bond Market Performance: The bond market experienced its best year since 2020, surprising income investors who were losing hope.
- Future Outlook: Despite some emerging risks, the outlook for the bond market in 2026 remains positive.
VYM vs. FDVV: A Comparison of Yield, Costs, and Risk for These Popular Dividend ETFs
Cost and Structure Comparison: VYM is more affordable with a lower expense ratio (0.06%) and holds a broader range of 566 stocks, while FDVV has a higher expense ratio (0.15%) and is more concentrated with only 107 holdings, primarily in technology.
Dividend Yield and Income Potential: FDVV offers a higher dividend yield of 3.02% compared to VYM's 2.42%, making it more appealing for income-focused investors, despite the higher fees potentially reducing net income.
Risk and Volatility: VYM has lower volatility and a shallower drawdown over the past five years, focusing more on financial services, while FDVV's concentration in technology leads to higher volatility and risk.
Investment Strategy Differences: VYM employs a passive, full-replication approach tracking the FTSE High Dividend Yield Index, whereas FDVV uses a sector-constrained strategy that tilts towards technology and consumer defensive sectors for potentially higher yields.
VIG vs. VYM: Which Vanguard Dividend ETF Is the Superior Investment?
Vanguard ETFs Overview: The Vanguard Dividend Appreciation ETF (VIG) focuses on long-term dividend growth stocks, while the Vanguard High Dividend Yield ETF (VYM) targets stocks with above-average yields, making them popular choices for conservative dividend stock exposure.
Performance Comparison: VYM offers a higher yield of 2.4% compared to VIG's 1.6%, and in a weakening economic environment, VYM's value-oriented nature may provide better performance due to its lower price-to-earnings ratio.
Sector Allocations: VIG has a significant allocation to technology (27.8%), which may pose risks if investor confidence declines, while VYM is more diversified across sectors, including financials and industrials, making it appear more traditional for dividend funds.
Current Preference: Given the current economic outlook and labor market challenges, the author prefers the Vanguard High Dividend Yield ETF (VYM) over the Vanguard Dividend Appreciation ETF (VIG) for its potential to outperform in a slowing economy.
VYM vs. FDVV: Which High-Yield Dividend ETF Is the Superior Option for Investors?
Expense Ratios and Stock Holdings: VYM has a lower expense ratio and holds 566 stocks, providing greater diversification, while FDVV has a higher dividend yield but is more volatile and holds only 107 stocks with a significant tilt towards technology.
Performance Comparison: Over the past five years, VYM has experienced smaller drawdowns compared to FDVV, which has shown higher total returns but also greater price swings, indicating a trade-off between risk and reward.
Sector Exposure: VYM's largest sector exposures are in financial services, technology, and healthcare, while FDVV is heavily weighted towards technology, which can influence both yield and risk characteristics.
Investment Considerations: For investors seeking stability and lower fees, VYM may be preferable, whereas those willing to accept more volatility for potentially higher earnings might find FDVV more attractive.
3 Vanguard ETFs to Invest $500 in and Keep for the Long Term
Vanguard ETFs Performance: The Vanguard Growth ETF (VUG) has consistently outperformed the S&P 500 since its inception, achieving an 874% return compared to the S&P's 490%. It is heavily invested in tech stocks, which have driven much of its growth.
Dividend Yield of VYM: The Vanguard High Dividend Yield ETF (VYM) has averaged a 3% dividend yield over the past decade, currently offering a yield of 2.4%. It includes companies from various sectors, providing a good complement to growth-focused ETFs.
Investment in VOO: The Vanguard S&P 500 ETF (VOO) is favored for its low expense ratio of 0.03% and its ability to mirror the performance of the broader U.S. economy, making it a solid long-term investment option.
Stock Advisor Recommendations: The Motley Fool's Stock Advisor has identified 10 top stocks for investment, which have historically outperformed the market, suggesting that investors consider these options alongside Vanguard ETFs for potentially higher returns.
Looking to Earn $10,000 in Passive Income? This Vanguard ETF Might Be Your Solution.
Vanguard High Dividend Yield ETF Overview: The Vanguard High Dividend Yield ETF (VYM) focuses on companies with high forecast dividend yields, averaging a 3% yield over the past decade and total annual returns of approximately 11.5%.
Passive Income Potential: Investing in dividend stocks or ETFs like VYM can generate passive income, with the potential to reach $10,000 in annual income requiring an investment of around $333,334, achievable through consistent monthly contributions over time.
Investment Strategy: By investing consistently, such as $500 monthly, one could reach the target investment amount in about 19 years, highlighting the power of compound earnings in growing investments.
Stock Advisor Recommendations: The Motley Fool's Stock Advisor has identified 10 top stocks for investment, which have historically outperformed the market, suggesting that VYM may not be the best option compared to these recommended stocks.
