VYM vs. NOBL: Which Dividend-Focused ETF Delivers a Higher Yield and Lower Fees?

The Vanguard High Dividend Yield ETF (NYSEMKT:VYM) stands retired for its little cost, somewhat higher yield, and larger assets nether management, portion the ProShares - S&P 500 Dividend Aristocrats ETF (NYSEMKT:NOBL) features a focused portfolio of established dividend growers with a antithetic assemblage premix and higher disbursal ratio.

Both VYM and NOBL people dividend-oriented U.S. equities, but their approaches diverge: VYM tracks high-yielding companies broadly, whereas NOBL invests lone successful S&P 500 stocks with astatine slightest 25 consecutive years of dividend increases. This examination examines however their costs, performance, risk, and portfolio operation differ.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VYM is considerably much affordable, charging conscionable 0.04% annually versus NOBL’s 0.35% disbursal ratio. VYM besides delivers a modestly higher yield, offering a 2.3% payout compared to NOBL’s 2.0%.

NOBL holds 70 S&P 500 Dividend Aristocrats, each with astatine slightest 25 years of rising payouts. Its assemblage weights stress Industrials (24%), Consumer Defensive (21%), and Financial Services (13%). The largest positions—Amcor Plc (NYSE:AMCR), Pepsico Inc (NASDAQ:PEP), and Ww Grainger Inc (NYSE:GWW)—each marque up little than 2% of assets, reflecting an arsenic weighted approach. With a 12.3-year way record, NOBL enforces a assemblage headdress of 30% to debar overconcentration.

In contrast, VYM holds a overmuch broader handbasket of 589 high-yielding U.S. stocks, with Financial Services (21%), Technology (18%), and Healthcare (13%) arsenic its apical sectors. The fund’s largest holdings see Broadcom Inc (NASDAQ:AVGO), JPMorgan Chase & Co (NYSE:JPM), and Exxon Mobil Corp (NYSE:XOM). This broader, little concentrated portfolio whitethorn entreaty to those seeking diversification crossed income-generating equities.

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For investors funny successful dividend stocks, Vanguard High Dividend Yield ETF (VYM) and ProShares - S&P 500 Dividend Aristocrats ETF (NOBL) are 2 exchanged traded funds (ETFs) worthy considering. Here’s what investors request to know.