VYM
Vanguard High Dividend Yield ETF
VYM tracks the FTSE High Dividend Yield Index, selecting U.S. companies with higher-than-average dividend yields. Broad diversification across market caps and sectors. Focus on current income rather than dividend growth history.
NOBL
ProShares S&P 500 Dividend Aristocrats ETF
NOBL tracks the S&P 500 Dividend Aristocrats Index, comprising S&P 500 companies that have increased dividends for at least 25 consecutive years. Focus on quality, dividend growth, and financial stability rather than current yield.
Key Metrics Comparison
| Metric | VYM | NOBL | Winner |
|---|---|---|---|
| Dividend Yield | 3.18% | 2.15% | VYM (+1.03%) |
| Expense Ratio | 0.06% | 0.35% | VYM (-0.29%) |
| 5-Year Annual Return | 9.8% | 10.2% | NOBL (+0.4%) |
| Number of Holdings | 448 | 65 | VYM |
| Assets Under Management | $58.3B | $11.8B | VYM |
| 5-Year Dividend Growth | 5.8% | 8.2% | NOBL (+2.4%) |
| P/E Ratio | 16.5 | 20.2 | VYM |
| Beta vs S&P 500 | 0.90 | 0.75 | NOBL (lower risk) |
Performance Comparison
VYM Performance
Higher current income with slightly lower total returns. Broader diversification across 448 holdings. Value tilt provides defensive characteristics. Lower expense ratio reduces drag. More cyclical exposure given value focus.
NOBL Performance
Slightly higher total returns with lower current income. Quality focus with 65 elite dividend growers. Lower beta provides defensive characteristics. Higher expense ratio impacts returns. Strong dividend growth history.
Strategy Analysis
VYM Approach
High dividend yield focus:
- Tracks FTSE High Dividend Yield Index
- Selects companies with above-average yields
- Broad diversification (448 holdings)
- Includes all market caps
- No minimum dividend growth history
- Value-tilted portfolio
- Lower quality screens
- Current income priority
NOBL Approach
Dividend aristocrats quality focus:
- Tracks S&P 500 Dividend Aristocrats Index
- Minimum 25 years of dividend increases
- S&P 500 constituents only
- Equal-weighted methodology
- Quality over yield focus
- Financial stability emphasis
- Dividend growth priority
- Elite dividend payer club
Dividend Growth Characteristics
VYM focuses on current yield while NOBL focuses on dividend growth history and quality. This fundamental difference drives their different performance characteristics.
VYM Dividend Growth
NOBL Dividend Growth
VYM Yield Premium
Dividend Safety
Quality & Financial Stability Comparison
NOBL's 25-year dividend growth requirement ensures holdings have survived multiple economic cycles with strong financial management.
Financial Metrics (Average)
NOBL Debt/Equity: 55% vs VYM 85%
NOBL Payout Ratio: 48% vs VYM 62%
NOBL ROE: 22% vs VYM 18%
Profit Margin: NOBL 18% vs VYM 12%
Economic Cycle Performance
2008 Financial Crisis: NOBL -38% vs VYM -42%
2020 Covid Crash: NOBL -32% vs VYM -36%
2001 Dot-com: NOBL -18% vs VYM -25%
Recovery speed: NOBL typically faster
Dividend Cut Risk
NOBL 2008-2009: 0 cuts among holdings
VYM 2008-2009: 12% cut/suspended dividends
NOBL 2020: 0 cuts (all maintained)
Quality premium: Lower yield but safer
Sector Allocation Comparison
Sector Weighting Differences
VYM has significant financials exposure while NOBL has more balanced sector allocation with consumer staples and industrials overweight.
Financials Exposure
Consumer Staples
Industrials
Technology
Defensive Characteristics & Downturn Performance
NOBL's lower beta and quality focus provide better downside protection, while VYM's higher yield can cushion declines but may include more cyclical risk.
Beta Comparison
NOBL Beta: 0.75 (25% less than market)
VYM Beta: 0.90 (10% less than market)
Defensive tilt: NOBL significantly more defensive
Value vs Quality: Different defensive approaches
Yield Cushion Effect
VYM yield: 3.18% provides income during declines
NOBL yield: 2.15% lower income cushion
Total return: Yield cushions VYM during flat markets
Dividend growth: NOBL catches up over time
Equal Weight Benefit (NOBL)
Equal weighting: NOBL's methodology advantage
Prevents concentration: Max 2% per holding
Small-cap exposure: Includes smaller aristocrats
Diversification: Better than cap-weighted peers
Income Analysis
VYM Income Profile
Higher current income with moderate growth. Broader yield opportunity set includes higher-yielding but potentially riskier companies. Financials-heavy exposure impacts income stability.
NOBL Income Profile
Lower current income with stronger growth. Elite quality companies with proven dividend growth through cycles. More sustainable payout ratios and financial strength.
Historical Performance & Backtesting
Long-Term Performance Comparison
NOBL has slightly outperformed VYM historically despite lower yield, thanks to quality factor and dividend growth compounding.
Since 2013 (NOBL inception)
Maximum Drawdown
Sharpe Ratio
Dividend Growth
Top Holdings Comparison
VYM Top Holdings (High Yield Focus)
Note: Financials-heavy, value-oriented, 448 total holdings
NOBL Top Holdings (Dividend Aristocrats)
Note: Equal-weighted (all ~1.5-2.0%), 65 elite dividend growers
Investment Recommendation
💰 Choose VYM If:
- Maximum current income is priority (3.18% vs 2.15%)
- Lower expense ratio matters (0.06% vs 0.35%)
- You prefer broader diversification (448 vs 65 holdings)
- Value investing approach appeals to you
- You're in or near retirement needing income
- Lower cost basis is important
- You believe financials will outperform
- You want simple, low-cost dividend exposure
👑 Choose NOBL If:
- Dividend growth is more important than current yield
- Quality and financial stability are paramount
- You want proven dividend growers (25+ years)
- Lower beta appeals to you (0.75 vs 0.90)
- Better downside protection is valuable
- You have longer time horizon (10+ years)
- Dividend safety during recessions matters
- Equal-weight diversification appeals to you
💡 Portfolio Construction Strategy
For income-focused investors: Use VYM as core (70-80%) with NOBL satellite (20-30%) for quality balance. For growth-focused investors: Reverse with NOBL as core (70-80%) and VYM satellite (20-30%) for yield boost. For balanced approach: 50% VYM + 50% NOBL provides 2.67% blended yield with quality characteristics. Important: VYM's 0.06% expense ratio provides significant cost advantage over NOBL's 0.35% - this 0.29% difference equals the yield advantage gap over time. During economic expansions, VYM may outperform due to cyclical exposure. During recessions or uncertainty, NOBL's quality should provide better protection. Consider combining both with SCHD for ultimate dividend portfolio: 40% SCHD + 30% VYM + 30% NOBL.