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VUG vs. VYM

Vanguard Growth ETF

VUG
$--
vs

Vanguard High Dividend Yield ETF

VYM
$--

Correlation

0.72
VUGVanguard Growth ETF
VYMVanguard High Dividend Yield ETF

What is VUG?

Seeks to track the performance of the CRSP U.S. Large Cap Growth Index. Provides a convenient way to match the performance of many of the nation s largest growth stocks. Follows a passively managed full-replication approach.

Snapshot
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VUG Vanguard Growth ETF
VYM Vanguard High Dividend Yield ETF
Inception date
Jan 26 2004
Nov 10 2006
Expense ratio
0.04%
0.06%
VUG has a lower expense ratio than VYM by 0.01%. This can indicate that it’s cheaper to invest in VUG than VYM.
Type
US Equities
US Equities
VUG targets investing in US Equities, while VYM targets investing in US Equities.
Fund owner
Vanguard
Vanguard
VUG is managed by Vanguard, while VYM is managed by Vanguard.
Volume (1m avg. daily)
$205,784,508
$134,746,385
Both VUG and VYM are considered high-volume assets. They’re less likely to be affected by issues like slippage and failed orders on Composer than low-volume assets.
AUM
$89,278,316,853
$48,466,955,232
VUG has more assets under management than VYM by $40,811,361,621. Higher AUM can be associated with better liquidity and lower slippage in trading.
Associated index
CRSP U.S. Large Cap Growth Index
FTSE High Dividend Yield Index
VUG is based off of the CRSP U.S. Large Cap Growth Index, while VYM is based off of the FTSE High Dividend Yield Index
Inverse/Leveraged
No
No
VUG and VYM use the same leverage ratio. Inverse and leveraged ETFs can be used to either take an opposite position or amplify returns of a given index.
Passive/Active
Passive
Passive
VUG and VYM both use a Passive investing strategy. In an actively managed fund, the fund manager makes decisions about how funds are invested. A passively managed fund typically tries to track or follow a market index.
Dividend
No
Yes
VYM may offer dividends, while VUG does not. The frequency and yield of the dividend for VYM may vary.
Prospectus
Neither VUG nor VYM require a K1.
VUG and VYM’s Correlation
When ETFs are correlated, there are 3 main topics to analyze that will help you build your automated trading strategy: liquidity, expense, and risk.
  • Liquidity: In an active trading strategy (trading multiple time per week), it’s important to consider the liquidity of the ETF you’re using. Lower liquidity can mean more money lost in slippage. AUM and average daily volume are both indicators of liquidity.
  • Expense: Some ETFs are more expensive to use than others. For strategies that are focused on longer holding periods, it’s important to factor in how expensive it is to hold this ETF. Expense ratio is the main indicator of how expensive an ETF is.
  • Risk: Some ETFs will be highly correlated, but have varying degrees of returns, due to leverage. It’s important to consider if an ETF is using leverage or not. The main indicators of a riskier ETF will be the use of leverage and higher standard deviation or max drawdown in a backtest.

Automated Strategies
Related toVUG

#BTD

Buy the Dips: Nasdaq 100

Category

Featured, Technology Focus

Risk Rating

Aggressive

Automated Strategies
Related toVYM

#CV

Controlling for Volatility

Category

Getting Defensive, Worried about Inflation?

Risk Rating

Moderate

Create your own algorithmic
trading strategy

Disclaimers

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We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.

**

We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.