Wealthy PotVOO vs VYM: The S&P 500 or Vanguard's High-Dividend Fund?
VYM is Vanguard's high-dividend fund, and more than 90% of it is in stocks VOO already owns. Those shared stocks are only about a third of VOO, by our calculation from the funds' latest SEC holdings filings, because VYM leaves out almost every large company with a low yield: Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta and Tesla. VYM's 30-day SEC yield was 2.35% against 1.00% for VOO. The price of that income has been total return: VYM trailed VOO by 3.86 percentage points a year over the ten years to 30 June 2026. VOO for growth of the whole pot. VYM if you specifically want more of your return paid out as dividends.
Table of Contents
The Short Answer
- Overlap: 92.2% of VYM is in VOO stocks. Those stocks are 34.4% of VOO, which is also the overlap. That is our calculation from SEC holdings filings for 30 June 2026 (VOO) and 31 July 2026 (VYM).
- Nearly the same fee. VOO 0.03%, VYM 0.04% in Vanguard's 2026 prospectuses.
- VYM pays more than twice the income. 30-day SEC yield on 30 September 2026: VYM 2.35%, VOO 1.00%.
- VOO has returned more. Over the ten years to 30 June 2026 at NAV: VOO 15.47% a year, VYM 11.61%. Over one year the gap was small (22.28% against 21.52%); to 30 September 2026 it widened again.
- Nine of VOO's ten biggest holdings are not in VYM. Broadcom is the only one VYM owns, and it is VYM's largest position at 7.35%.
- VYM is broader, not narrower. 605 stocks against 506 for VOO on 30 June 2026, with the top ten at 25.9% of assets against 37.9%.
How Much of VYM Is Already in VOO
VYM tracks the FTSE High Dividend Yield Index, which in its prospectus's words "consists of common stocks of companies that pay dividends that generally are higher than average (excluding real estate investment trusts)." Vanguard's fact sheet says the fund emphasizes "stocks that are forecasted to have above-average dividend yields." Most large dividend payers are S&P 500 members, so VYM sits largely inside VOO.
| Overlap measure | Result |
|---|---|
| Holdings in common | 255 |
| Share of VYM's weight in stocks VOO also owns | 92.2% |
| Share of VOO's weight in stocks VYM also owns | 34.4% |
| Overlap (sum of the smaller weight in each shared stock) | 34.4% |
| Stock | Weight in VOO | Weight in VYM |
|---|---|---|
| Broadcom | 2.77% | 7.35% |
| JPMorgan Chase | 1.26% | 3.82% |
| Exxon Mobil | 0.88% | 2.63% |
| Johnson & Johnson | 0.95% | 2.51% |
| Cisco Systems | 0.72% | 1.86% |
| AbbVie | 0.69% | 1.80% |
| Bank of America | 0.58% | 1.66% |
| UnitedHealth Group | 0.59% | 1.52% |
| Caterpillar | 0.76% | 1.50% |
The two-thirds of VOO that VYM does not own starts with Nvidia (7.51%), Apple (6.59%), Alphabet (5.84%), Microsoft (4.30%), Amazon (3.62%), Micron (2.02%), Meta (1.92%), Tesla (1.84%), Eli Lilly (1.47%) and AMD (1.47%). Together those ten were 36.6% of VOO. The roughly 8% of VYM outside VOO is a long list of mid-sized dividend payers, none above 0.2%.
VOO vs VYM Side by Side
| VOO | VYM | |
|---|---|---|
| Name | Vanguard S&P 500 ETF | Vanguard High Dividend Yield ETF |
| Index | S&P 500 Index | FTSE High Dividend Yield Index |
| Expense ratio | 0.03% | 0.04% |
| Prospectus cost of $10,000 over 10 years | $39 | $51 |
| Number of stocks (30 June 2026) | 506 | 605 |
| Top 10 holdings, % of assets | 37.9% | 25.9% |
| Median market cap | $455.6B | $161.5B |
| Price/earnings ratio | 27.5x | 21.6x |
| Price/book ratio | 5.4x | 3.1x |
| 3-year standard deviation | 13.06% | 11.18% |
| 30-day SEC yield (30 Sep 2026) | 1.00% | 2.35% |
| Portfolio turnover, latest fiscal year | 2% | 11% |
| ETF share class net assets | $979.0 billion | $79.0 billion |
| Inception | 7 September 2010 | 10 November 2006 |
Where the Two Funds Differ
Vanguard's VOO fact sheet uses GICS sectors and its VYM fact sheet uses the Industry Classification Benchmark. The labels look similar but the boundaries differ (ICB "Technology" is not the same bucket as GICS "Information Technology"), so we show each fund on its own scheme rather than subtract.
| VOO (GICS), 30 June 2026 | Weight | VYM (ICB), 30 June 2026 | Weight |
|---|---|---|---|
| Information Technology | 38.0% | Financials | 20.6% |
| Financials | 11.8% | Technology | 14.6% |
| Communication Services | 9.7% | Industrials | 14.4% |
| Consumer Discretionary | 9.3% | Health Care | 12.4% |
| Health Care | 8.9% | Consumer Staples | 8.5% |
| Industrials | 8.8% | Energy | 8.5% |
| Consumer Staples | 4.6% | Consumer Discretionary | 7.9% |
| Energy | 3.0% | Utilities | 6.0% |
| Utilities | 2.2% | Telecommunications | 4.0% |
| Materials | 1.8% | Basic Materials | 3.0% |
| Real Estate | 1.8% | Real Estate | 0.0% |
Allowing for the different schemes, the shape is clear. VOO's single biggest exposure is technology at well over a third of the fund. About half of VYM's 14.6% technology weight is a single stock, Broadcom (7.3% on the same fact sheet). VYM leans instead on banks, industrials, health care, energy and utilities, and holds no REITs by design.
That makes VYM a cheaper-looking portfolio: 21.6 times earnings and 3.1 times book on 30 June 2026, against 27.5 and 5.4 for VOO. Its median company was about $162 billion, around a third of VOO's. In practice VYM behaves like a large-cap value fund with a yield screen, which is why VTV vs VYM is the closer comparison.
What the Extra Yield Has Cost
| Average annual return at NAV | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| VOO, to 30 June 2026 | 22.28% | 20.58% | 13.36% | 15.47% |
| VYM, to 30 June 2026 | 21.52% | 17.44% | 11.78% | 11.61% |
| VYM minus VOO | -0.76 | -3.14 | -1.58 | -3.86 |
| VOO, to 30 September 2026 | 15.70% | 22.85% | 13.75% | 15.29% |
| VYM, to 30 September 2026 | 12.72% | 17.67% | 11.63% | 11.28% |
| VYM minus VOO | -2.98 | -5.18 | -2.12 | -4.01 |
Total return counts dividends and price changes together, and on that measure VOO came out ahead at every horizon on both dates. A higher yield is not extra return on top; it is part of the return arriving as cash instead of as price growth. Over this decade the low-yield growth companies that VYM screens out did most of the rising.
VYM was calmer by Vanguard's three-year standard deviation (11.18% against 13.06%). That did not hold in the sharpest fall, though: the prospectuses show VYM's worst quarter at -23.96% and VOO's at -19.63%, both in the first quarter of 2020.
| Hypothetical $10,000 held for 10 years | Ending value |
|---|---|
| At VOO's 10-year return to 30 Jun 2026 (15.47%) | $42,140 |
| At VYM's 10-year return to 30 Jun 2026 (11.61%) | $29,994 |
Yield and Taxes in a Brokerage Account
The extra income is taxable every year in a regular brokerage account, whether you spend it or reinvest it. Each prospectus reports what that did to returns over the periods ended 31 December 2025, using the highest federal rates.
| Annualized at NAV, to 31 Dec 2025 | 1 year | 5 years | 10 years |
|---|---|---|---|
| VOO before taxes | 17.84% | 14.38% | 14.78% |
| VOO after taxes on distributions | 17.50% | 13.99% | 14.32% |
| VYM before taxes | 15.43% | 12.68% | 11.32% |
| VYM after taxes on distributions | 14.73% | 11.90% | 10.51% |
Over ten years VYM lost 0.81 points a year to tax on distributions and VOO 0.46, our arithmetic. On a $100,000 position, VYM's current SEC yield implies about $2,350 a year of reportable dividends against about $1,000 for VOO, assuming the yields hold. Inside an IRA, Roth IRA or 401(k) none of this applies. If you hold VYM for its income, a tax-sheltered account is the efficient place for it; check your 2026 tax bracket before holding it in a taxable account.
Which One Fits You
Building wealth over decades: VOO. It holds the dividend payers VYM holds and the growth companies VYM leaves out, for 0.03%, and it has produced the higher total return.
Living on the income, especially in an IRA: VYM is a reasonable choice. A 2.35% yield across 600 stocks gives steadier cash flow without selling shares. Remember that dividends can be cut, and that selling a few VOO shares produces cash too.
Holding both. About 90% of VYM is already in VOO, so adding it raises your weight in banks, health care, energy and Broadcom and lowers your weight in the largest technology names. That is a tilt you are choosing, not extra diversification.
401(k) menus. Many plans offer an S&P 500 index fund but no high-dividend fund. That fund gives you VOO's exposure.
Mutual fund versions. VYM's portfolio is also sold as Admiral Shares (VHYAX) at 0.08%, and VOO's as VFIAX at 0.04%, each generally with a $3,000 minimum at Vanguard. The ETFs cost less and, per both prospectuses, carry "no minimum dollar amount you must invest," so they work in a Fidelity, Schwab or other brokerage account.
For other ways to get dividend income, see VYM vs SCHD, VIG vs VYM and SCHD vs VOO.
Sources & Methodology
- VYM summary prospectus, Form 497K dated 27 February 2026: fee table (0.04%), cost example, turnover, index description, returns and after-tax returns to 31 December 2025.
- VHYAX Admiral Shares summary prospectus, 27 February 2026: 0.08% and the $3,000 minimum.
- VOO summary prospectus, Form 497K dated 28 April 2026: fee table (0.03%), cost example, turnover, returns and after-tax returns.
- Vanguard VOO fact sheet and VYM fact sheet, both as of 30 June 2026.
- Vanguard VOO profile and VYM profile: SEC yields and month-end returns as of 30 September 2026, read 5 October 2026.
- VOO Form N-PORT, period ended 30 June 2026 and VYM Form N-PORT, period ended 31 July 2026: holdings behind the overlap.
How the overlap was computed. We matched both N-PORT holdings lists and summed, for each shared stock, the smaller of its two weights, the same method as our Portfolio Overlap Checker. The filings are a month apart.
Notes and limits. We checked Vanguard's supplements filed after each prospectus through September 2026 and found no fee change for either fund. Sector weights come from two different classification schemes and are not subtracted. Returns on the two dates are shown in separate rows and never mixed.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, dividends are not guaranteed, and past performance does not guarantee future results. All investing carries the risk of loss. Figures were checked against the sources above on 5 October 2026. Confirm current figures with Vanguard and consider speaking with a licensed financial professional before acting.
FAQ: VOO vs VYM
Is VYM better than VOO?
On total return, no: VOO returned 15.47% a year at NAV over the ten years to 30 June 2026, against 11.61% for VYM. VYM pays more income (2.35% SEC yield against 1.00%) and holds cheaper-valued stocks.
Should I hold both VOO and VYM?
You can, but about 90% of VYM is already in VOO on our calculation. Adding VYM shifts weight toward high-yield stocks rather than adding new companies.
How much do VOO and VYM overlap?
92.2% of VYM's weight is in stocks VOO owns, and those stocks are 34.4% of VOO, from their June and July 2026 N-PORT filings.
Does VYM own Apple, Microsoft or Nvidia?
No. None of the three was in VYM's July 2026 filing. Broadcom is the only one of VOO's ten largest holdings that VYM owns.
Which has the lower expense ratio?
VOO, at 0.03% against 0.04% for VYM: $3 against $4 a year on $10,000.
Is VYM good for a taxable account?
It is less tax-efficient than VOO. Its prospectus shows 0.81 points a year lost to taxes on distributions over ten years to 2025, against 0.46 for VOO, at the highest federal rates.
Why does VYM hold Broadcom as its top stock?
Broadcom was VYM's largest holding at 7.35% in the July 2026 filing. The index provider decides which stocks qualify as high yield, and membership can change at each annual rebalance.
Cite This Page
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"VOO vs VYM: The S&P 500 or Vanguard's High-Dividend Fund?" Wealthy Pot, 2026. https://wealthypot.com/voo-vs-vym/
Related comparisons: VYM vs SCHD · VIG vs VYM · VTV vs VYM · VIG vs VOO · SCHD vs VOO · VOO vs VTV · All ETF comparisons
