Better Dividend ETF: Vanguard's VYM vs. ProShares' NOBL
Key Points
VYM charges a much lower expense ratio and delivers a slightly higher yield than NOBL.
VYM holds nearly 600 stocks spanning more sectors, while NOBL is more concentrated in consumer defensive and industrials.
VYM posted stronger 1-year and 5-year returns, though both ETFs showed similar risk profiles over recent years.
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The Vanguard High Dividend Yield ETF (NYSEMKT:VYM) offers broader diversification, a higher recent return, and a lower expense ratio than ProShares - S&P 500 Dividend Aristocrats ETF (NYSEMKT:NOBL), which focuses on S&P 500 (SNPINDEX:^GSPC) companies with long dividend growth histories and a more concentrated sector mix.
This comparison examines how VYM and NOBL stack up for investors seeking dividend income, risk management, and broad U.S. equity exposure. Both ETFs target companies with strong dividend characteristics, but their approaches and results differ in cost, yield, portfolio makeup, and performance.
Snapshot (cost & size)
| Metric | NOBL | VYM |
|---|---|---|
| Issuer | ProShares | Vanguard |
| Expense ratio | 0.35% | 0.06% |
| 1-yr return (as of 2025-12-26) | 4.3% | 12.2% |
| Dividend yield | 2.1% | 2.4% |
| Beta | 0.77 | 0.76 |
| AUM | $11.2 billion | $84.5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VYM is significantly more affordable, charging just 0.06% in annual fees compared to 0.35% for NOBL, and also delivers a modestly higher dividend yield, which may appeal to cost-conscious income investors.
Performance & risk comparison
| Metric | NOBL | VYM |
|---|---|---|
| Max drawdown (5 y) | (17.92%) | (15.83%) |
| Growth of $1,000 over 5 years | $1,327 | $1,601 |
What's inside
VYM holds 589 stocks as of December 29, 2025, with its largest sector exposures in financial services (21%), technology (18%), and healthcare (13%). Top positions include Broadcom Inc. (NASDAQ:AVGO), JPMorgan Chase & Co. (NYSE:JPM), and Exxon Mobil Corp. (NYSE:XOM). This broad approach gives VYM a wide industry reach and reduces single-stock risk, with no notable quirks or overlays.
NOBL, in contrast, comprises a portfolio of 70 stocks concentrated in consumer defensive (23%), industrials (21%), and financial services (13%). Top holdings include Albemarle Corp. (NYSE:ALB), Cardinal Health Inc. (NYSE:CAH), and C.H. Robinson Worldwide Inc. (NASDAQ:CHRW). NOBL's equal-weighted strategy and sector caps lead to a more focused but less diversified portfolio.
What this means for investors
Both the Vanguard High Dividend Yield ETF (VYM) and ProShares - S&P 500 Dividend Aristocrats ETF (NOBL) strive to deliver attractive dividends, but through very different approaches.
NOBL targets companies that have a history of increasing dividend payments over time. As a result, it holds a much smaller basket of 70 stocks. The focus on rising dividends means the fund invests in businesses with strong fundamentals that can afford to bump up payouts regularly.
NOBL's equal weighting approach also prevents a handful of stocks from affecting overall fund performance. However, its total returns lag VYM, and the higher expense ratio eats into the dividend income.
VYM's nearly 600 holdings give it a diverse portfolio, which helps it weather downturns in a particular sector. Its inclusion of tech stocks has been a boon with the advent of artificial intelligence, leading to better overall returns compared to NOBL. However, its largest holdings can affect fund performance.
In addition, VYM's much larger AUM provides it with greater liquidity, and its low expense ratio means more money in your pocket. These factors make it a better ETF compared to NOBL for investors seeking both dividend income as well as good overall fund performance.
Glossary
ETF: Exchange-traded fund, a basket of securities that trades on an exchange like a stock.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund’s average assets.
Dividend yield: Annual dividends per share divided by the current share price, shown as a percentage.
Dividend growth: A company’s pattern of increasing its dividend payments over time.
Dividend Aristocrats: S&P 500 companies that have increased their dividends for at least 25 consecutive years.
Sector exposure: The percentage of a fund’s assets invested in specific industries or sectors.
Equal-weighted strategy: Portfolio approach where each holding is kept at roughly the same weight.
Concentrated portfolio: Fund that holds relatively few securities or has large weights in certain sectors or stocks.
Diversification: Spreading investments across many securities or sectors to reduce the impact of any single holding.
Beta: Measure of an investment’s volatility relative to a benchmark, typically the S&P 500 index.
Max drawdown: The largest peak-to-trough decline in an investment’s value over a specified period.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
For more guidance on ETF investing, check out the full guide at this link.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Robert Izquierdo has positions in Broadcom and JPMorgan Chase. 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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