Wealthy PotVTV vs VYM: Two Vanguard Value Funds That Share About Two-Thirds
VTV and VYM are both cheap Vanguard funds of large, lower-valued US companies, and they share about two-thirds of their portfolios. Our calculation from their SEC holdings filings puts the overlap at 68.1%. The difference is the selection rule. VTV picks value stocks as its index provider defines them, with no dividend test in its prospectus, and holds Micron and Berkshire Hathaway; VYM picks stocks for high forecast dividend yield and holds Broadcom as its largest position. VYM yields more (2.35% against 1.89%). VTV has returned more, by 1.06 percentage points a year over the ten years to 30 June 2026, and costs 0.03% against 0.04%. Holding both adds little.
Table of Contents
The Short Answer
- Overlap: 68.1%. Shared stocks are 68.7% of VTV and 78.7% of VYM, by our calculation from N-PORT filings for 30 June 2026 (VTV) and 31 July 2026 (VYM).
- VTV is a penny cheaper. 0.03% against 0.04% in Vanguard's 2026 prospectuses.
- VYM yields more. 30-day SEC yield on 30 September 2026: VYM 2.35%, VTV 1.89%.
- VTV returned more at every horizon. To 30 June 2026 at NAV, ten years: VTV 12.67% a year, VYM 11.61%. One year: 25.92% against 21.52%. VTV also led at every horizon to 30 September 2026.
- Same valuation, different names. Both traded near 21.5 times earnings with a median company of about $165 billion. VTV holds Micron and Berkshire Hathaway, which VYM does not; VYM holds Broadcom, Oracle and McDonald's, which VTV does not.
- VTV changed its name. Since 29 July 2026 it is the Vanguard Morningstar Value ETF, tracking the Morningstar US Large Cap Value Index. Ticker and strategy are unchanged.
How Much VTV and VYM Overlap
| Overlap measure | Result |
|---|---|
| Holdings in common | 196 |
| Share of VTV's weight in stocks VYM also owns | 68.7% |
| Share of VYM's weight in stocks VTV also owns | 78.7% |
| Overlap (sum of the smaller weight in each shared stock) | 68.1% |
The biggest shared positions carry similar weights in both funds, which is unusual for a fund pair and shows how alike the two are:
| Stock | Weight in VTV | Weight in VYM |
|---|---|---|
| JPMorgan Chase | 3.06% | 3.82% |
| Johnson & Johnson | 2.29% | 2.51% |
| Exxon Mobil | 2.12% | 2.63% |
| Caterpillar | 1.83% | 1.50% |
| AbbVie | 1.66% | 1.80% |
| Cisco Systems | 1.56% | 1.86% |
| UnitedHealth Group | 1.41% | 1.52% |
| Bank of America | 1.36% | 1.66% |
| Home Depot | 1.32% | 1.34% |
The differences sit in a few large names. VTV owns, and VYM does not: Micron (4.87% of VTV), Berkshire Hathaway (3.47%), Walmart (1.86%), Intel (1.05%), GE (0.73%), Thermo Fisher (0.70%) and American Express (0.69%). VYM owns, and VTV does not: Broadcom (7.35% of VYM), Oracle (0.90%), McDonald's (0.78%) and Starbucks (0.49%), plus several hundred smaller companies, since VYM holds roughly twice as many stocks.
Two Indexes, Two Selection Rules
VTV tracks what Vanguard's April 2026 prospectus calls "a broadly diversified index made up of the value stocks of large U.S. companies, as determined by the index provider." The prospectus describes no dividend requirement: membership turns on the provider's value classification. A supplement dated 29 July 2026 renamed the fund and its index after Morningstar "announced the acquisition of the Center for Research in Security Prices ('CRSP') and its CRSP Market Indexes." The CRSP US Large Cap Value Index became the Morningstar US Large Cap Value Index, and the supplement states that each fund's "investment objective, strategies, and polices remain unchanged."
VYM tracks the FTSE High Dividend Yield Index, which its prospectus says "consists of common stocks of companies that pay dividends that generally are higher than average (excluding real estate investment trusts)." Vanguard's fact sheet adds that the index is drawn from the US part of FTSE's global equity series, focuses on stocks "forecasted to have above-average dividend yields," and uses buffer zones at its annual rebalance to limit turnover.
Both rules lead to roughly the same corner of the market: large, mature, lower-valued companies. One starts from price, the other from payout.
VTV vs VYM Side by Side
| VTV | VYM | |
|---|---|---|
| Current name | Vanguard Morningstar Value ETF | Vanguard High Dividend Yield ETF |
| Index | Morningstar US Large Cap Value 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) | 308 | 605 |
| Top 10 holdings, % of assets | 24.1% | 25.9% |
| Median market cap | $165.5B | $161.5B |
| Price/earnings ratio | 21.4x | 21.6x |
| Price/book ratio | 3.2x | 3.1x |
| 3-year standard deviation | 11.55% | 11.18% |
| 30-day SEC yield (30 Sep 2026) | 1.89% | 2.35% |
| Portfolio turnover, latest fiscal year | 8% | 11% |
| ETF share class net assets | $186.1 billion | $79.0 billion |
| Admiral Shares mutual fund | VVIAX, 0.05% | VHYAX, 0.08% |
Where the Two Funds Differ
Both fact sheets use the Industry Classification Benchmark, so the sector weights can be compared directly.
| Sector (ICB), 30 June 2026 | VTV | VYM |
|---|---|---|
| Financials | 21.3% | 20.6% |
| Industrials | 16.6% | 14.4% |
| Health Care | 13.9% | 12.4% |
| Technology | 11.9% | 14.6% |
| Consumer Discretionary | 8.2% | 7.9% |
| Consumer Staples | 7.8% | 8.5% |
| Energy | 6.8% | 8.5% |
| Utilities | 5.3% | 6.0% |
| Telecommunications | 3.3% | 4.0% |
| Real Estate | 2.5% | 0.0% |
| Basic Materials | 2.2% | 3.0% |
No sector differs by more than about three points. VYM has a little more technology (about half of it Broadcom), energy, staples and utilities, and no real estate, because its index excludes REITs. VTV has a little more in industrials, health care and real estate. Valuation, company size and three-year volatility are almost identical.
Concentration is similar too: the ten largest holdings were 24.1% of VTV and 25.9% of VYM. VYM's single largest position, Broadcom at 7.3% on the fact sheet, is bigger than anything in VTV, where Micron leads at 4.9%.
Returns and the Cost of a Higher Yield
| Average annual return at NAV | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| VTV, to 30 June 2026 | 25.92% | 18.01% | 12.32% | 12.67% |
| VYM, to 30 June 2026 | 21.52% | 17.44% | 11.78% | 11.61% |
| VTV minus VYM | +4.40 | +0.57 | +0.54 | +1.06 |
| VTV, to 30 September 2026 | 18.19% | 18.75% | 12.43% | 12.28% |
| VYM, to 30 September 2026 | 12.72% | 17.67% | 11.63% | 11.28% |
| VTV minus VYM | +5.47 | +1.08 | +0.80 | +1.00 |
VTV's lead over three to ten years has been modest, roughly half a point to a point a year. Over the decade, $10,000 compounding at VTV's 12.67% would have grown to $32,967, against $29,994 at VYM's 11.61%. That is our arithmetic on a hypothetical lump sum, before taxes and costs, and it describes the past only.
VYM's extra yield also costs a little more in a taxable account. Each prospectus reports ten-year returns to 31 December 2025 before and after taxes on distributions, at the highest federal rates: VTV 11.67% before and 11.00% after, VYM 11.32% and 10.51%. That is a drag of 0.67 points a year for VTV and 0.81 for VYM, our arithmetic. On $100,000, VYM's current SEC yield implies about $2,350 a year of reportable income against about $1,890 for VTV, assuming the yields hold. Inside an IRA or 401(k) the difference disappears.
Their worst calendar quarter in each prospectus was the first quarter of 2020: VTV down 25.03% and VYM down 23.96%.
Which One Fits You
You want a value tilt at the lowest cost: VTV. It is cheaper, larger, and has the better record over every period shown. It also includes value companies that pay little, so its yield is lower.
You want the income itself: VYM. The yield screen is the point of the fund. Its 2.35% SEC yield is about half a point above VTV's, and it spreads that across roughly 600 stocks. Remember that dividends are not guaranteed.
Should you hold both? With about two-thirds overlap and nearly identical sectors and valuations, owning both mostly duplicates the same exposure. Pick one. If you want a meaningfully different dividend fund to pair with either, VYM vs SCHD and SCHD vs VTV cover Schwab's quality-screened fund, which overlaps much less.
Taxable account. VTV's lower yield makes it slightly more tax-efficient, per the prospectus figures above.
Mutual fund versions and minimums. VVIAX (0.05%) and VHYAX (0.08%) are the Admiral Shares equivalents, each generally with a $3,000 minimum at Vanguard. The ETFs cost less, and Vanguard's prospectuses say there is "no minimum dollar amount you must invest," so either ETF works in a Fidelity, Schwab or other brokerage account.
If you are weighing either fund against the whole S&P 500 instead, see VOO vs VTV and VOO vs VYM.
Sources & Methodology
- Vanguard Index Funds, Form 485BPOS filed 28 April 2026: VTV ETF fee table (0.03%, "restated to reflect current fees"), cost example, turnover, index description, Admiral fee, returns and after-tax returns to 31 December 2025.
- Vanguard, Form 497 supplement dated 29 July 2026: the renaming of VTV and its index.
- VYM summary prospectus, Form 497K dated 27 February 2026 and VHYAX summary prospectus: fees, cost example, turnover, index description, returns and after-tax returns.
- Vanguard VTV fact sheet and VYM fact sheet, both as of 30 June 2026.
- Vanguard VTV profile and VYM profile: SEC yields and month-end returns as of 30 September 2026, read 5 October 2026.
- VTV 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. VTV's 30 June fact sheet lists one top-ten line as "Issuer Not Found" at 2.1%; the N-PORT filing for the same date identifies it as Exxon Mobil. We checked Vanguard's supplements through September 2026 and found no later fee change for either fund. 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: VTV vs VYM
Is VTV or VYM better?
VTV has returned more: 12.67% a year at NAV over the ten years to 30 June 2026 against 11.61% for VYM, and it costs 0.03% against 0.04%. VYM pays more income, with a 2.35% SEC yield against 1.89%.
Should I hold both VTV and VYM?
There is little reason to. They overlap by 68.1% on our calculation and have nearly identical sector weights and valuations.
How much do VTV and VYM overlap?
68.1% by the sum-of-smaller-weights method from their June and July 2026 N-PORT filings. Shared stocks are 68.7% of VTV and 78.7% of VYM.
Which pays more dividends?
VYM. Its 30-day SEC yield was 2.35% on 30 September 2026, against 1.89% for VTV.
Did VTV's index change?
Its name did. Effective 29 July 2026 the CRSP US Large Cap Value Index became the Morningstar US Large Cap Value Index and the fund became the Vanguard Morningstar Value ETF. Vanguard says the objective and strategy are unchanged.
Why is Broadcom in VYM but not VTV?
VYM's index selects on forecast dividend yield, and Broadcom qualified; it was VYM's largest holding at 7.35% in July 2026. VTV's index selects on value characteristics, and Broadcom was not in VTV's June 2026 filing.
Which is more tax-efficient?
VTV, slightly. Over ten years to 2025 its prospectus shows 0.67 points a year lost to taxes on distributions against 0.81 for VYM, at the highest federal rates.
Cite This Page
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"VTV vs VYM: Two Vanguard Value Funds That Share About Two-Thirds." Wealthy Pot, 2026. https://wealthypot.com/vtv-vs-vym/
Related comparisons: VOO vs VTV · VOO vs VYM · SCHD vs VTV · VYM vs SCHD · VIG vs VYM · All ETF comparisons
