VYM vs. VOO — ETF comparison tool (2024)

FAQs

VYM vs. VOO — ETF comparison tool? ›

VOO - Performance Comparison. In the year-to-date period, VYM achieves a 8.10% return, which is significantly lower than VOO's 11.30% return. Over the past 10 years, VYM has underperformed VOO with an annualized return of 9.65%, while VOO has yielded a comparatively higher 12.68% annualized return.

Average Return

In the past year, QQQ returned a total of 30.38%, which is higher than VOO's 27.99% return. Over the past 10 years, QQQ has had annualized average returns of 18.30% , compared to 12.63% for VOO. These numbers are adjusted for stock splits and include dividends.

SPY - Performance Comparison. In the year-to-date period, VYM achieves a 8.62% return, which is significantly lower than SPY's 11.82% return. Over the past 10 years, VYM has underperformed SPY with an annualized return of 9.83%, while SPY has yielded a comparatively higher 12.81% annualized return.

The SCHD dividend is consistently twice that of VOO. The SCHD holdings are primarily large-cap blue-chip stocks. VOO and SCHD have a lot of holdings overlap. But VOO contains all U.S. stocks in the S&P 500 index, while SCHD contains only the top-value dividend stocks.

Many people pair VOO with the Vanguard Total Bond Market ETF (BND) in a broader portfolio. The fixed income ETF has $95 billion in assets and is the largest bond ETF trading in the U.S. BND has two-thirds of its assets in U.S. government bonds, with most of the remainder in investment-grade corporate bonds.

QQQ appears to be the single best long-term investment option for investors seeking total returns due to its ability to expose holders to top U.S. companies on an ongoing basis. The Nasdaq 100 has consistently outperformed the S&P 500 in terms of total returns, making it a favorable choice for long-term investors.

VTI is a total U.S. market fund and holds more than 3,500 stocks. VTI is better diversified and benefits from small and mid-cap stocks that grow into large caps. VOO is less diversified, tracking the performance of the S&P 500 Index. VOO excludes small and mid-cap stocks.

Because of this, VYM is an outstanding option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well. The iShares Russell 1000 Value ETF (IWD) and the Vanguard Value ETF (VTV) track a similar index.

VYM has a dividend yield of 2.90% and paid $3.42 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.

Vanguard High Dividend Yield (VYM): Historical Returns

In the last 30 Years, the Vanguard High Dividend Yield (VYM) ETF obtained a 9.75% compound annual return, with a 14.58% standard deviation. Discover new asset allocations in USD and EUR, in addition to the lazy portfolios on the website.

How do I know which ETF is best? ›

Measure how well the ETF tracks the index

Determine how closely the ETF tracks the index returns. See how consistent the ETF's tracking quality is over time. While an ETF is closely aligned with the performance of the index it is tracking, they do not match exactly.

A favored measure is tracking difference—a statistic that looks at how far an ETF has lagged its benchmark, on average, over a one-year period. Tracking difference incorporates the effects of an entire range of management decisions, from securities lending to optimization decisions.

QQQ and VOO Holdings Overlap

The VOO and QQQ portfolio contains matching assets. Of the 100 companies included in the Nasdaq-100, 78 are also included in the S&P 500. If we compare QQQ and VOO by the top 10 companies, 8 of them will match.

Ultimately, investors choosing an ETF need to ask 3 questions: What exposure does this ETF have? How well does the ETF deliver this exposure? And how efficiently can I access the ETF? Look at the ETF's underlying index (benchmark) to determine the exposure you're getting.