• Home
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Team
  • Contact
Tuesday, May 6, 2025
FinCurrency
No Result
View All Result
  • Home
  • News
  • Finance
  • Economy
  • Crypto
  • Home
  • News
  • Finance
  • Economy
  • Crypto
No Result
View All Result
FinCurrency
No Result
View All Result

VYM vs. VOO: Choosing the Right Vanguard ETF for Long-Term Investment

Andras Crow-Hreidar by Andras Crow-Hreidar
June 23, 2023
in Crypto
Reading Time: 3 mins read
A A
0
2VYM-vs-VOO--Choosing-the-Right-Vanguard-ETF-for-Long-Term-Investment-
0
SHARES
16
VIEWS
FacebookTweetPinShareShare

When it comes to choosing between two popular Vanguard exchange-traded funds (ETFs) VYM vs VOO understanding their differences is fundamental . VYM tracks the FTSE High Dividend Yield Index while focusing on U .S . large-cap dividend value stocks . In contrast VOO tracks the S&P 500 Index and  encompasses both growth and value U .S . large-cap stocks . This article provides a comprehensive analysis of VYM vs . VOO to help you make an informed decision for your long-term investment strategy .

 

Focus and Holdings

 

The primary distinction between VYM and VOO is in their underlying indices . VYM targets U .S . large-cap dividend value stocks through the FTSE High Dividend Yield Index . On the other hand VOO replicates the performance of the S&P 500 Index and provides exposure to a broader range of U .S . large-cap stocks both growth and value-oriented .

 

blockdag 70m

Additionally VOO includes Real Estate Investment Trusts (REITs) while VYM does not . This difference arises from the nature of the indices they track . The FTSE High Dividend Yield Index focuses on stocks with above-average dividend yields and excludes those that do not pay dividends or have no record of dividend payment in the past 12 months .

 

Sector Weighting and Diversification

 

In terms of sector weighting VOO offers a more diverse portfolio compared to VYM . Since VOO tracks the S&P 500 Index it spreads its holdings across a broader range of sectors which makes it suitable for investors who seek a well-diversified portfolio . On the other hand VYM may be more appealing to dividend investors looking to overweight high-dividend stocks in their portfolios but might not provide the same level of diversification as a core holding .

VYM-vs-VOO--Choosing-the-Right-Vanguard-ETF-for-Long-Term-Investment-

Popularity and Expense Ratio

 

While both VYM and VOO are popular Vanguard ETFs VOO has a significantly larger asset base with over $550 billion compared to approximately $43 billion for VYM . Both ETFs offer low-cost investment which aligns with the core principle of ETFs . VOO boasts a lower expense ratio of 0 .03% compared to VYM’s expense ratio of 0 .06% .

 

Performance and Investment Strategy

 

When it comes to performance VOO has shown better results compared to VYM partly thanks to VYM’s focus on value stocks . Growth stocks have outperformed value stocks in recent years which  highlights the advantage of diversification across asset classes . However it is important to remember the fact that VYM has also performed well over the last decade and may still generate profits for investors .

 

Choosing the Right Vanguard ETF

 

If you are seeking broad and diversified exposure to the U .S . stock market VOO may be the preferred choice as a core holding . Its inclusion of REITs and broader market coverage offers greater diversification . On the other hand VYM is more suitable for investors who target high-dividend yield stocks and seek a dividend tilt in their portfolios . However relying solely on VYM may not provide optimal portfolio diversification .

 

Both VYM and VOO are excellent Vanguard ETFs each with their own focus and value proposition . By understanding their differences and aligning them with your investment objectives, you can make an informed decision that suits your long-term investment strategy . Remember to consider factors such as sector weighting, diversification expense ratios and performance when choosing between VYM and VOO to ensure the best fit for your investment goals .

You may be interested in:

RoboForex‌ ‌Review 2023: Pros, Cons and Key Features

A Beginner’s Guide to Where to Buy LUNC

Whales Shift Focus to Stablecoins, Signaling Expectations of Market Volatility

Previous Post

RoboForex‌ ‌Review 2023: Pros, Cons and Key Features

Next Post

VOO vs. VTSAX: Which Is the Better Fund for You?

Andras Crow-Hreidar

Andras Crow-Hreidar

Hi there, my name is András and I'm a business and finance journalist living in Norway. My passion lies in uncovering the latest stories in the world of finance and delivering them to my readers in a way that's clear and engaging. I cover a wide range of topics in the finance world, including cryptocurrencies, which I believe have the potential to transform the way we interact with money and financial systems.As a journalist, I'm committed to providing my readers with accurate and reliable reporting. I believe that access to high-quality information is essential for making informed decisions, whether it's about personal finances or investments. When I'm not writing about finance, I enjoy a variety of hobbies and interests.

Next Post
2VOO-vs-VTSAX--Which-Is-the-Better-Fund-for-You--

VOO vs. VTSAX: Which Is the Better Fund for You?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Popular News

  • How BlockDAG’s Community-First Strategy Raised $68.3M in Presale; Cardano To Roll out New Update & Solana Price Prediction Bullish

    How BlockDAG’s Community-First Strategy Raised $68.3M in Presale; Cardano To Roll out New Update & Solana Price Prediction Bullish

    0 shares
    Share 0 Tweet 0
  • Top 10 Altcoins Under $1 to Invest in 2025

    0 shares
    Share 0 Tweet 0
  • Alex Mashinsky Net Worth: From Tech Pioneer to Legal Battle

    0 shares
    Share 0 Tweet 0
  • How to Earn Passive Income? Embrace the Future of Passive Income and Earn 20% Instant USDT with Caged Beasts Coin

    0 shares
    Share 0 Tweet 0
  • Vanguard Routing Number: How to Find and Use It

    0 shares
    Share 0 Tweet 0

Recent News

$12k Void Opens Up Possibility Of Crash Toward $75,000

$12k Void Opens Up Possibility Of Crash Toward $75,000

January 11, 2025
Phishing, Fake Mining Scams, and $474K Loss in One Week

Phishing, Fake Mining Scams, and $474K Loss in One Week

January 11, 2025
3 kleine crypto’s met potentie

3 kleine crypto’s met potentie

January 11, 2025
Unbelievable 1000x Return in Just 12 Hours!

Crypto Whale Bags $4.9M in Profit with Solana’s AI Meme Coin

January 11, 2025
FinCurrency Logo White Mode Retina Mobile

FinCurrency is a user-friendly platform that stands out as a unique source where our strong team of experienced and academically qualified writers, who are experts in their fields, analyze current issues and global affairs related to the finance and crypto world in an enjoyable and non-technical approach.

$12k Void Opens Up Possibility Of Crash Toward $75,000

$12k Void Opens Up Possibility Of Crash Toward $75,000

January 11, 2025
Phishing, Fake Mining Scams, and $474K Loss in One Week

Phishing, Fake Mining Scams, and $474K Loss in One Week

January 11, 2025
3 kleine crypto’s met potentie

3 kleine crypto’s met potentie

January 11, 2025
Unbelievable 1000x Return in Just 12 Hours!

Crypto Whale Bags $4.9M in Profit with Solana’s AI Meme Coin

January 11, 2025

WARNING:

The content on this site should not be considered investment advice and we are not authorised to provide investment advice. Nothing on this website is an endorsement or recommendation of a particular trading strategy or investment decision. The information on this website is general in nature so you must consider the information in light of your objectives, financial situation and needs.
Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence or obtain advice where necessary. This website is free for you to use but we may receive a commission from the companies we feature on this site.

  • Home
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Team
  • Contact

© 2024 FinCurrency - Global News

No Result
View All Result
  • Home
  • News
  • Economy
  • Finance
  • Crypto
  • Technology
  • Terms and Conditions
  • Contact

© 2024 FinCurrency - Global News

Banner 1
Banner 2
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Terms and Conditions.