Better Dividend ETF: Vanguard's VYM vs. ProShares' NOBL

The Vanguard High Dividend Yield ETF (NYSEMKT:VYM) stands retired for its debased cost, higher trailing return, and broader assemblage exposure, portion the ProShares - S&P 500 Dividend Aristocrats ETF (NYSEMKT:NOBL) targets dividend maturation with a absorption connected industrials and user defensives.

Both VYM and NOBL are fashionable choices for income-focused investors, but their approaches differ. VYM aims for precocious existent output from a wide swath of U.S. stocks. This examination explores cardinal differences successful cost, returns, risk, and portfolio composition.

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 importantly much affordable with a 0.06% disbursal ratio compared to NOBL's 0.35%, and it besides offers a somewhat higher dividend yield.

NOBL tracks U.S. companies successful the S&P 500 that person raised dividends for astatine slightest 25 consecutive years, resulting successful a focused portfolio of 70 stocks. Industrials (24%) and user antiaircraft (21%) sectors dominate, and the fund’s apical holdings — Sysco Corp. (NYSE:SYY), C.H. Robinson Worldwide Inc. (NASDAQ:CHRW), and Colgate-Palmolive Co. (NYSE:CL) — are each arsenic weighted astatine astir 1.5%. NOBL has a 12.3-year way grounds and enforces assemblage caps to debar over-concentration.

VYM, successful contrast, casts a overmuch wider nett with 589 holdings and larger positions successful fiscal services (21%) and exertion (18%). Its apical holdings see Broadcom Inc. (NASDAQ:AVGO), JPMorgan Chase & Co. (NYSE:JPM), and Exxon Mobil Corp. (NYSE:XOM), with weights much concentrated astatine the top. VYM’s broader diversification whitethorn entreaty to those seeking vulnerability crossed much sectors and companies.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.

Both the Vanguard High Dividend Yield ETF (VYM) and ProShares S&P 500 Dividend Aristocrats ETF (NOBL) are coagulated choices for investors seeking income. Each exchange-traded money offers an charismatic dividend yield, truthful the enactment betwixt the 2 travel down to a fistful of differences.

NOBL is appealing for investors seeking stocks that person a past of consistently raising dividends implicit time. This delivers income stability. The ETF besides provides little volatility, fixed the sectors it focuses on, and its caps to beforehand adjacent weighting.