VYM vs. NOBL: Which Dividend-Focused ETF Delivers a Higher Yield and Lower Fees?

The Vanguard High Dividend Yield ETF (VYM +0.55%) stands out for its lower cost, slightly higher yield, and larger assets under management, while the ProShares - S&P 500 Dividend Aristocrats ETF (NOBL +0.52%) features a focused portfolio of established dividend growers with a different sector mix and higher expense ratio.

Both VYM and NOBL target dividend-oriented U.S. equities, but their approaches diverge: VYM tracks high-yielding companies broadly, whereas NOBL invests only in S&P 500 stocks with at least 25 consecutive years of dividend increases. This comparison examines how their costs, performance, risk, and portfolio construction differ.

Snapshot (Cost & Size)

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 considerably more affordable, charging just 0.04% annually versus NOBL’s 0.35% expense ratio. VYM also delivers a modestly higher yield, offering a 2.3% payout compared to NOBL’s 2.0%.

Performance & Risk Comparison

What’s Inside

NOBL holds 70 S&P 500 Dividend Aristocrats, each with at least 25 years of rising payouts. Its sector weights emphasize Industrials (24%), Consumer Defensive (21%), and Financial Services (13%). The largest positions—Amcor Plc (AMCR +3.21%), Pepsico Inc (PEP +1.31%), and Ww Grainger Inc (GWW +1.22%)—each make up less than 2% of assets, reflecting an equally weighted approach. With a 12.3-year track record, NOBL enforces a sector cap of 30% to avoid overconcentration.

In contrast, VYM holds a much broader basket of 589 high-yielding U.S. stocks, with Financial Services (21%), Technology (18%), and Healthcare (13%) as its top sectors. The fund’s largest holdings include Broadcom Inc (AVGO +0.74%), JPMorgan Chase & Co (JPM 2.34%), and Exxon Mobil Corp (XOM +2.67%). This broader, less concentrated portfolio may appeal to those seeking diversification across income-generating equities.

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What This Means For Investors

For investors interested in dividend stocks, Vanguard High Dividend Yield ETF (VYM) and ProShares - S&P 500 Dividend Aristocrats ETF (NOBL) are two exchanged traded funds (ETFs) worth considering. Here’s what investors need to know.

Both funds hold dividend-paying U.S. stocks, but there are some key differences in approach and execution. First off, NOBL is more targeted, holding around 70 stocks, all of which not only pay dividends, but have increased them over the last 25 years. VYM, on the other hand, casts a wider net. It holds 589 stocks — providing a greater level of diversification.

Turning to details, VYM wins the head-to-head matchup in two key respects. It has the lower expense ratio (0.04% vs. 0.35%), and it has the higher dividend yield (2.3% vs. 2.0%). What’s more, VYM has also edged out NOBL in terms of historic performance. Over the last ten years, VYM has generated a total return of 235%, equating to a compound annual growth rate (CAGR) of 12.9%. NOBL, meanwhile, has generated a total return of 198%, with a CAGR of 11.5%.

In summary, VYM comes out on top in most categories: lower fees, higher dividend yield, and superior historic returns. However, NOBL may still be of interest to investors seeking more concentrated exposure to dividend-paying stocks.