DIVB vs VYM

Quick Verdict

VYM has a lower expense ratio. DIVB delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: DIVBMore Diversified: VYM

Side-by-Side Comparison

MetricDIVBVYMWinner
Expense Ratio0.05%0.04%
AUM$1.7B$79.0B
Dividend Yield2.27%2.86%
Holdings385568
YTD Return+25.63%+15.45%
1Y Return+36.53%+26.05%
3Y Return (annualized)+22.22%+17.96%
5Y Return (annualized)+13.45%+12.54%
Volatility (annualized)17.0%14.6%
Max Drawdown-36.9%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 7, 2017Nov 10, 2006

DIVB vs VYM Performance

iShares Core Dividend ETF (DIVB) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DIVB returned +36.53% while VYM returned +26.05%. Year to date, DIVB is up 25.63% versus a gain of 15.45% for VYM.

Over three years, DIVB compounded at +22.22% per year against +17.96% for VYM; over five years the annualized figures are +13.45% and +12.54% respectively. Across the full 9-year window we track, DIVB has the edge at +13.60% annualized vs +7.06%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DIVB has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -36.9% for DIVB and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

DIVB charges 0.05% per year while VYM charges 0.04%. On a $10,000 position that is $5 vs $4 annually, a gap of $1 per year that compounds over a long holding period. On income, DIVB currently yields 2.27% against 2.86% for VYM.

Holdings Overlap

55.0%overlap

DIVB and VYM share 272 holdings out of 657 unique holdings combined, representing a 55.0% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in DIVBWeight in VYMDifference
IBM5.20%0.98%4.22%
JPM2.76%3.36%0.60%
ADP5.08%0.38%4.70%
XOMProProPro
JNJProProPro
2345:TWProProPro
ABBVProProPro
PGProProPro
CVXProProPro
BACProProPro
See all 10 holdings DIVB shares with VYM
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, DIVB or VYM?

DIVB has an expense ratio of 0.05% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $1 per year of difference.

Which performed better, DIVB or VYM?

Over the past year DIVB returned +36.53% vs +26.05% for VYM, so DIVB leads on 1-year performance. Over the longest common window we track (9 years), DIVB annualized +13.60% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, DIVB or VYM?

DIVB has been the more volatile fund at 17.0% annualized versus 14.6% for VYM. Worst drawdown: DIVB -36.9% vs VYM -58.8%.

Should I hold both DIVB and VYM?

DIVB and VYM have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between DIVB and VYM?

DIVB and VYM share 272 common holdings with a 55.0% weight overlap. Combined, they hold 657 unique securities.

Which pays a higher dividend, DIVB or VYM?

DIVB yields 2.27% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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