VYM dividend yield: 2.91%. XYLD dividend yield: 9.02%. VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income. XYLD sells covered calls on the S&P 500, converting equity volatility into monthly income. Yields 8-10% depending on market conditions. Similar to QYLD but with S&P 500 exposure — less volatile but comparable income mechanics. Popular for retirement income portfolios alongside other dividend ETFs.
VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income.
XYLD sells covered calls on the S&P 500, converting equity volatility into monthly income. Yields 8-10% depending on market conditions. Similar to QYLD but with S&P 500 exposure — less volatile but comparable income mechanics. Popular for retirement income portfolios alongside other dividend ETFs.
Is VYM or XYLD better for dividend income in 2026?
VYM currently offers a 2.91% yield (3.44/share/year) while XYLD offers 9.02% (3.48/share/year). XYLD provides higher current income. However, VYM has grown its dividend faster (7.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in VYM vs XYLD earn per year?
With $10,000 invested today: VYM pays approximately $291/year. XYLD pays approximately $902/year. With DRIP reinvestment over 10 years, these grow to $785/year (VYM) and $2,364/year (XYLD).
Does VYM or XYLD pay monthly dividends?
VYM pays quarterly dividends. XYLD pays monthly dividends. XYLD pays monthly, which is preferred by investors who need regular cash flow.
📬
Get this VYM vs XYLD comparison by email
Save your analysis + get weekly dividend insights. Free forever.