ETF Versus

VGT vs VYM

Vanguard Information Technology Index Fund ETF Shares vs Vanguard High Dividend Yield Index Fund ETF Shares

Last updated: 2026-04-02

VGT

Vanguard Information Technology Index Fund ETF Shares (VGT) is an exchange-traded fund that provides exposure to us sector - technology securities. It charges a low expense ratio of 0.09%. The fund offers a modest dividend yield of 0.43%. Launched in 2004, the fund has a 22-year track record.

AUM: $102.6B ER: 0.09% Yield: 0.43% Since: Jan 26, 2004
VYM Vanguard

Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 2.37%. Launched in 2006, the fund has a 20-year track record.

AUM: $71.3B ER: 0.04% Yield: 2.37% Since: Nov 10, 2006

Quick Verdict

VYM has a slightly lower expense ratio (0.04% vs 0.09%), saving about $99 per $10,000 over 10 years. Over the past year, VGT has significantly outperformed with a 29.2% return vs 15.0%. Income investors may prefer VYM for its higher yield (2.4% vs 0.4%).

Key Metrics

Metric VGT VYM
Expense Ratio 0.09% 0.04%
Dividend Yield 0.4% 2.4%
Fund Family N/A Vanguard
Category US Sector - Technology US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

80 107 134 161 188 215 2021-04 2022-06 2023-09 2024-12 2026-04
VGT +89.7%
VYM +44.6%

Performance Comparison

Period VGT VYM Difference
1 Month -3.71% -4.59% +0.88%
3 Months -6.53% +2.20% -8.73%
6 Months -6.49% +4.52% -11.01%
YTD -6.53% +2.20% -8.73%
1 Year +29.20% +14.98% +14.22%
3 Years +83.56% +39.18% +44.38%
5 Years +89.73% +44.55% +45.18%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VGT Fees VYM Fees You Save
$10.000 10 years $179 $80 $99
$10.000 20 years $771 $344 $427
$10.000 30 years $2.486 $1.112 $1.373
$50.000 10 years $896 $399 $497
$50.000 30 years $12.428 $5.560 $6.867
$100.000 30 years $24.855 $11.121 $13.734

Risk Metrics

Based on 5 years of daily returns

Metric VGT VYM
Annualized Volatility 25.1% 14.0%
Max Drawdown -35.5% -17.5%
Sharpe Ratio 0.46 0.28

Dividend Comparison

Metric VGT VYM
Annual Dividend (per share) $3.06 $3.51
Dividend Yield 0.43% 2.37%
Distribution Frequency Quarterly Quarterly

Top Holdings

1 of top 10 holdings overlap (10% overlap in top holdings)

VGT Top Holdings

NameWeight
NVIDIA CorporationNVDA18.07%
Apple Inc.AAPL15.84%
Microsoft CorporationMSFT10.39%
Broadcom Inc.AVGO4.34%
Micron Technology, Inc.MU2.37%
Advanced Micro Devices, Inc.AMD1.65%
Cisco Systems, Inc.CSCO1.63%
Palantir Technologies Inc.PLTR1.57%
Applied Materials, Inc.AMAT1.54%
Lam Research CorporationLRCX1.53%

VYM Top Holdings

NameWeight
Broadcom Inc.AVGO6.48%
JPMorgan Chase & Co.JPM3.36%
Exxon Mobil CorporationXOM2.83%
Johnson & JohnsonJNJ2.63%
Walmart Inc.WMT2.44%
AbbVie Inc.ABBV1.81%
The Procter & Gamble CompanyPG1.72%
The Home Depot, Inc.HD1.66%
Chevron CorporationCVX1.54%
Caterpillar Inc.CAT1.51%

Which One Should You Choose?

Choose VYM if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose VGT if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose VYM if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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