Vanguard VYM Offers Broader Diversification Than NOBL
Key Points
The Vanguard High Dividend Yield ETF and the ProShares S&P 500 Dividend Aristocrats ETF differ in cost.
The Vanguard High Dividend Yield ETF holds 589 stocks.
The ProShares S&P 500 Dividend Aristocrats ETF comes with higher fees than the Vanguard High Dividend Yield ETF.
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The Vanguard High Dividend Yield ETF (NYSEMKT:VYM) and the ProShares - S&P 500 Dividend Aristocrats ETF (NYSEMKT:NOBL) differ most in cost, breadth, and yield: VYM holds 589 stocks and charges lower fees, while NOBL targets S&P 500 dividend consistency.
The Vanguard High Dividend Yield ETF tracks a broader index, holding hundreds of U.S. stocks forecasted to pay above-average dividends. VYM stands out as more affordable, with a 0.06% fee as of Oct. 31, 2025—less than one-fifth of NOBL’s 0.35%—potentially appealing for cost-conscious, income-seeking investors. Here’s how these two income-focused ETFs compare.
Snapshot (cost & size)
| Metric | NOBL | VYM |
|---|---|---|
| Issuer | ProShares | Vanguard |
| Expense ratio | 0.35% | 0.06% |
| 1-yr return (as of Oct. 31, 2025) | (1.8%) | 10.0% |
| Dividend yield | 2.1% | 2.5% |
| Beta | 0.86 | N/A |
| AUM | $11.1 billion | $81.3 billion |
Beta measures price volatility relative to the S&P 500; figures use five-year weekly returns.
Performance & risk comparison
| Metric | NOBL | VYM |
|---|---|---|
| Max drawdown (5 y) | (17.92%) | (15.85%) |
| Growth of $1,000 over 5 years | $1,396 | $1,734 |
What's inside
Vanguard High Dividend Yield ETF holds 589 U.S. stocks, tilting toward Financial Services (22%), Technology (16%), and Healthcare (12%). Its top holdings—Broadcom Inc (NASDAQ:AVGO), JPMorgan Chase (NYSE:JPM), and Exxon Mobil (NYSE:XOM)—each make up a small slice of the portfolio. The fund, now 19 years old, follows a rules-based approach to capture companies with forecasted above-average dividend yields.
The ProShares - S&P 500 Dividend Aristocrats ETF, by contrast, is built around long-term dividend growth, with 70 stocks equally weighted and capped sector exposure. Consumer Defensive, Industrials, and Financial Services dominate. Notable holdings include C.H. Robinson Worldwide (NASDAQ:CHRW), Cardinal Health (NYSE:CAH), and Caterpillar (NYSE:CAT), each at just 0.02% of assets. NOBL’s approach is narrower, focusing on proven dividend raisers within the S&P 500 universe.
For more guidance on ETF investing, check out the full guide at this link.
Foolish take
The Vanguard High Dividend Yield ETF tracks the FTSE All-World High Dividend Yield Index. The relatively successful index eschews real estate investment trusts and focuses on businesses that pay higher-than-average dividend yields. Stocks are ranked by their forward-looking dividend yields and market caps. Only those in the 45th percentile are included in the index.
The ProShares - S&P 500 Dividend Aristocrats ETF tracks companies in the S&P 500 index that have consistently raised their dividend payouts for at least 25 years.
Both of these ETFs fill their portfolios with high-yield dividend payers, but their performance has been very different. Over the past five years, the ProShares - S&P 500 Dividend Aristocrats ETF delivered a paltry 53.1% return if we include dividend payments. Significantly lower fees and inclusion of stocks not in the S&P 500 index helped the Vanguard High Dividend Yield ETF outperform with a total return of 98.5%. The S&P 500 index is up by 98% over the past five years, or 113% if you include dividend payments.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
AUM (Assets Under Management): The total market value of all assets managed by a fund.
Beta: A measure of a fund's volatility compared to the overall market; values below 1 indicate less volatility.
Max drawdown: The largest percentage decline from a fund’s peak value to its lowest point over a specific period.
Rules-based approach: An investment strategy that follows predefined criteria or formulas rather than active management decisions.
Equally weighted: A portfolio construction method where each holding has the same weight, regardless of company size.
Sector exposure: The proportion of a fund’s assets invested in specific industry sectors.
Dividend Aristocrats: S&P 500 companies that have increased their dividends for at least 25 consecutive years.
Drawdown: The decline in value from a fund’s peak to its subsequent low, often used to assess risk.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase, ProShares S&P 500 Dividend Aristocrats ETF, and Vanguard Whitehall Funds - Vanguard High Dividend Yield ETF. The Motley Fool recommends Broadcom and C.H. Robinson Worldwide. The Motley Fool has a disclosure policy.
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