Wealthy PotVTI vs VYM: The Whole US Market or Its High-Dividend Payers?
Almost all of VYM is already inside VTI: 98.9% of its weight, by our calculation from the two funds' latest SEC holdings filings. Those shared stocks make up 32.8% of VTI. VYM picks the higher-yielding US stocks and leaves out Nvidia, Apple, Alphabet, Microsoft, Amazon and most other large growth companies. It pays more than twice the income (a 2.35% SEC yield against 1.03%) and costs a little more (0.04% against 0.03%). Over the ten years to 30 June 2026 it returned 3.43 percentage points a year less than VTI. VTI is the total-return core. VYM is an income tilt.
Table of Contents
The Short Answer
- Overlap: 98.9% one way, 32.8% the other. Nearly all of VYM is VTI stocks, and those stocks are about a third of VTI. That is our calculation from SEC holdings filings for 31 July 2026 (VYM) and 30 June 2026 (VTI).
- Fees: VTI 0.03%, VYM 0.04%. On $10,000 over ten years the prospectus examples come to $39 and $51.
- VYM pays more income. 30-day SEC yield on 30 September 2026: VYM 2.35%, VTI 1.03%.
- VTI has the better record at every horizon. Ten years to 30 June 2026 at NAV: VTI 15.04% a year, VYM 11.61%. VTI also led over one, three and five years, on both 30 June and 30 September.
- VYM has been calmer most of the time. Three-year standard deviation of 11.18% against 13.45%. Its worst quarter in the prospectus was deeper, though: -23.96% against -20.89%, both in early 2020.
- VYM costs more in tax in a taxable account. Prospectus figures to 31 December 2025 show taxes on distributions trimming 0.81 points a year from VYM's ten-year return, against 0.47 for VTI.
How Much of VTI Is Already VYM
VYM's prospectus says it tracks an index of "common stocks of companies that pay dividends that generally are higher than average (excluding real estate investment trusts ('REITs'))." VTI's index "represents 100% of the investable U.S. stock market." So VYM is a dividend screen applied to roughly the same universe VTI already owns.
We matched the two funds' Form N-PORT holdings reports, using the same data as our Portfolio Overlap Checker. The filings are a month apart: VTI's is for 30 June 2026 and VYM's for 31 July 2026.
| Overlap measure | Result |
|---|---|
| VYM holdings also held by VTI | 578 of 601 |
| Share of VYM's weight in stocks VTI also owns | 98.9% |
| Share of VTI's weight in stocks VYM also owns | 32.8% |
| Overlap (sum of the smaller weight in each shared stock) | 32.8% |
The 23 VYM holdings we did not find in VTI's filing add up to 0.84% of VYM. The largest is NXP Semiconductors at 0.24%.
| Stock | Weight in VTI | Weight in VYM |
|---|---|---|
| Broadcom | 2.47% | 7.35% |
| JPMorgan Chase | 1.12% | 3.82% |
| Exxon Mobil | 0.78% | 2.63% |
| Johnson & Johnson | 0.84% | 2.51% |
| Cisco Systems | 0.58% | 1.86% |
| AbbVie | 0.61% | 1.80% |
| Bank of America | 0.50% | 1.66% |
| UnitedHealth Group | 0.52% | 1.52% |
| Caterpillar | 0.68% | 1.50% |
The other direction is the telling one. About two-thirds of VTI is in companies VYM does not hold, led by Nvidia (6.36% of VTI), Apple (5.87%), Alphabet (5.18%), Microsoft (3.83%), Amazon (3.19%), Micron, Meta, Tesla and Eli Lilly. Of VTI's ten largest holdings, only Broadcom is in VYM.
VTI vs VYM Side by Side
| VTI | VYM | |
|---|---|---|
| Current name | Vanguard Morningstar Total Stock Market ETF | Vanguard High Dividend Yield ETF |
| Index | Morningstar US Total Market 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 | 3,531 | 605 |
| Top 10 holdings, % of assets | 33.4% | 25.9% |
| Median market cap | $336.5B | $161.5B |
| Price/earnings ratio | 27.0x | 21.6x |
| Price/book ratio | 4.9x | 3.1x |
| 3-year standard deviation | 13.45% | 11.18% |
| 30-day SEC yield (30 Sep 2026) | 1.03% | 2.35% |
| Portfolio turnover, latest fiscal year | 3% | 11% |
| ETF share class net assets | $663.5 billion | $79.0 billion |
| Inception | 24 May 2001 | 10 November 2006 |
Where the Two Funds Differ
Both fact sheets use the Industry Classification Benchmark, so the sector weights compare directly.
| Sector (ICB), 30 June 2026 | VTI | VYM | Difference |
|---|---|---|---|
| Technology | 41.0% | 14.6% | -26.4 |
| Financials | 10.0% | 20.6% | +10.6 |
| Industrials | 12.5% | 14.4% | +1.9 |
| Health Care | 9.1% | 12.4% | +3.3 |
| Consumer Staples | 3.4% | 8.5% | +5.1 |
| Energy | 3.2% | 8.5% | +5.3 |
| Consumer Discretionary | 12.3% | 7.9% | -4.4 |
| Utilities | 2.5% | 6.0% | +3.5 |
| Telecommunications | 2.1% | 4.0% | +1.9 |
| Basic Materials | 1.6% | 3.0% | +1.4 |
| Real Estate | 2.3% | 0.0% | -2.3 |
VYM swaps about 26 points of technology for financials, energy, staples, utilities and health care. Its technology weight is mostly one stock: Broadcom was 7.3% of VYM on the fact sheet. Real estate is zero because the index excludes REITs, which, in the fact sheet's words, "generally do not benefit from currently favorable tax rates on qualified dividends."
Size and valuation shift too. VYM's median company was about $162 billion, against $337 billion for VTI, and it traded at 21.6 times earnings against 27.0. VYM's fact sheet describes it as "large-cap equity"; VTI also owns thousands of small companies.
VYM's turnover is higher (11% against 3%). Its index re-ranks stocks by expected yield each year, and the fact sheet notes it "uses buffer zones during annual rebalancing to reduce portfolio turnover." Whatever the turnover, the larger dividend stream is taxable each year in a brokerage account.
Returns and the Cost of a Higher Yield
| Average annual return at NAV | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| VTI, to 30 Jun 2026 | 23.16% | 20.43% | 12.24% | 15.04% |
| VYM, to 30 Jun 2026 | 21.52% | 17.44% | 11.78% | 11.61% |
| VYM minus VTI | -1.64 | -2.99 | -0.46 | -3.43 |
| VTI, to 30 Sep 2026 | 15.33% | 22.32% | 12.56% | 14.70% |
| VYM, to 30 Sep 2026 | 12.72% | 17.67% | 11.63% | 11.28% |
| VYM minus VTI | -2.61 | -4.65 | -0.93 | -3.42 |
A higher yield is not a higher return. Total return counts dividends and price changes together, and on that measure VTI led at every horizon on both dates. Most of the ten-year gap came from the large technology companies that pay little or no dividend and so are absent from VYM.
| Hypothetical $10,000 held for 10 years | Ending value |
|---|---|
| At VTI's 10-year return to 30 Jun 2026 (15.04%) | $40,597 |
| At VYM's 10-year return to 30 Jun 2026 (11.61%) | $29,994 |
Taxes widen the gap in a brokerage account. In the prospectus returns to 31 December 2025, taxes on distributions cut VYM's ten-year return from 11.32% to 10.51% a year (0.81 points) and VTI's from 14.25% to 13.78% (0.47 points). The prospectus assumes the highest individual federal tax bracket, so your own figures will differ.
This is educational information, not personalized investment advice. Past performance does not guarantee future results, and all investing carries the risk of loss.
Which One Fits You
Building wealth over decades: VTI. It owns VYM's dividend payers plus the growth companies and small caps VYM leaves out, for less, 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 spread across about 600 stocks gives steadier cash flow without selling shares. Dividends can be cut, though, and selling a few VTI shares produces cash too.
Holding both. Almost all of VYM is already in VTI, so adding it raises your weight in banks, energy, health care and Broadcom and lowers your weight in the largest technology names. That is a tilt you are choosing, not extra diversification.
Taxable account. On $100,000, VYM's yield means roughly $2,350 of reportable income a year against $1,030 for VTI, our arithmetic assuming the yields hold. If you do not need the cash, that is tax paid early for no benefit. Check where your income falls in the 2026 tax brackets.
Mutual fund versions. VTI's fund is also sold as VTSAX (0.04%) and VYM's as VHYAX (0.08%), 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 at Fidelity, Schwab or any other broker.
For other income options, see VIG vs VTI (dividend growth instead of high yield), SCHD vs VTI, VYM vs SCHD and VTV vs VYM. If you are choosing against the S&P 500 instead, see VOO vs VYM.
Sources & Methodology
- Vanguard Index Funds, Form 485BPOS filed 28 April 2026: VTI ETF fee table (0.03%), cost example, turnover, index description, after-tax returns, VTSAX fee and Admiral minimum.
- VYM summary prospectus, Form 497K dated 27 February 2026: VYM fee table (0.04%), cost example, turnover, index description, after-tax returns, best and worst quarters.
- VHYAX summary prospectus, Form 497K dated 27 February 2026: Admiral Shares fee (0.08%).
- Vanguard, Form 497 supplement dated 29 July 2026: VTI's renaming to Vanguard Morningstar Total Stock Market ETF and its index to the Morningstar US Total Market Index, with objective and strategy unchanged. VYM was not renamed.
- Vanguard VTI fact sheet and VYM fact sheet, both as of 30 June 2026: returns, holdings, sectors, valuation, volatility and net assets.
- Vanguard VTI profile and VYM profile: 30-day SEC yields and returns as of 30 September 2026.
- VTI Form N-PORT, period ended 30 June 2026 and VYM Form N-PORT, period ended 31 July 2026: the holdings behind the overlap figures.
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 two filings are a month apart, which is what the SEC had published for each fund when we checked.
Notes and limits. The two fact sheets count stocks differently from the N-PORT filings (605 against 601 for VYM). We checked Vanguard's supplements filed after VYM's February 2026 prospectus and found no fee change. Returns from 30 June and 30 September 2026 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, 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: VTI vs VYM
Is VYM better than VTI?
For total return, it has not been: VTI returned 15.04% a year at NAV over the ten years to 30 June 2026 against 11.61% for VYM, and VTI also led over one, three and five years. VYM pays more income and has been less volatile over three years.
Should I hold both VTI and VYM?
You can, but by our calculation 98.9% of VYM is already in VTI stocks. Adding VYM shifts weight toward high-yield sectors; it does not add new companies.
How much do VTI and VYM overlap?
98.9% of VYM's weight is in stocks VTI owns, and those stocks are 32.8% of VTI, from SEC filings for 31 July 2026 (VYM) and 30 June 2026 (VTI).
What is the dividend yield of VYM vs VTI?
The 30-day SEC yield on 30 September 2026 was 2.35% for VYM and 1.03% for VTI.
Which is cheaper?
VTI, at 0.03% a year against VYM's 0.04%. On $10,000 over ten years the prospectus examples come to $39 and $51.
Does VYM own REITs?
No. Its index excludes real estate investment trusts. VTI holds them as part of the whole market (2.3% real estate on its June 2026 fact sheet).
Is VYM good for retirement income?
It can be one way to draw income, mostly inside an IRA where its dividends are not taxed each year. A total-market fund plus planned withdrawals is the other common approach. Neither is advice for your situation.
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"VTI vs VYM: The Whole US Market or Its High-Dividend Payers?" Wealthy Pot, 2026. https://wealthypot.com/vti-vs-vym/
Related comparisons: VOO vs VYM · VTV vs VYM · VIG vs VYM · SCHD vs VTI · VYM vs SCHD · VTI vs VTV · All ETF comparisons
