Why is DVY's expense ratio so much higher than VYM's?

DVY launched in 2003 when ETF fees were higher across the board, and BlackRock has not lowered it. VYM, launched in 2006 by Vanguard with its low-cost ethos, has always charged near-zero fees.

Is DVY's utility tilt good for retirement income?

Utilities are stable income generators but underperform when interest rates rise. DVY's heavy utility weighting is a double-edged sword — defensive in equity selloffs, vulnerable in rising-rate cycles.

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ETF Comparison

VYM vs DVY: Broad High Yield or Utilities-Tilted Yield?

VYM's broad market-cap-weighted high-yield exposure versus DVY's growth-screened, utilities-heavy approach. Compare yield, sector tilt, and expense.

Data as of April 27, 2026

VYM

Vanguard High Dividend Yield ETF

Vanguard

High Dividend Yield

Price

$154.95

Yield (TTM)

2.41%

DVY

iShares Select Dividend ETF

BlackRock

High Dividend Yield

Price

$151.91

Yield (TTM)

3.46%

Quick Comparison Summary

VYM vs DVY: compare dividend yield (2.4% vs 3.5%), expense ratio (0.04% vs 0.38%), holdings, returns, and our verdict for dividend investors.

Side-by-Side Metrics

Metric	VYM	DVY
Issuer	Vanguard	BlackRock
Inception	2006-11-10	2003-11-03
Category	High Dividend Yield	High Dividend Yield
Price	$154.95	$151.91
NAV	$154.96	$151.98
Dividend Yield (TTM)	2.41%	3.46%
Expense Ratio	0.04%	0.38%
Distribution Frequency	Quarterly	Quarterly
AUM	$76.7B	$22.4B

Total Returns

3Y and 5Y figures are annualized. A 0% value indicates the fund had not been listed for the full period.

Holdings & Sector Exposure

VYM

Top 5 / 5 shown

JPM
JPMorgan Chase
3.92%
AVGO
Broadcom
3.41%
XOM
ExxonMobil
3.05%
JNJ
Johnson & Johnson
2.48%
PG
Procter & Gamble
2.31%

Sector Weights

Financials21.5%
Health Care13.8%
Consumer Staples12.6%
Industrials11.4%
Energy9.8%
Information Tech9.1%

DVY

Top 5 / 5 shown

ALL
Allstate
2.42%
PFG
Principal Financial
2.18%
VLO
Valero Energy
2.12%
CVX
Chevron
2.05%
PRU
Prudential
1.98%

Sector Weights

Utilities22.6%
Financials19.8%
Energy11.2%
Consumer Staples10.4%
Industrials8.6%
Materials6.8%

Pros & Cons

VYMPros

Far lower 0.04% expense ratio
Broader 400+ stock diversification
Higher liquidity

DVYPros

Dividend per share growth screen
Heavy utilities exposure provides defensive tilt
Long track record (since 2003)

VYMCons

No quality screens
Less defensive sector mix

DVYCons

0.38% expense ratio is high for a passive fund
Utilities concentration creates rate sensitivity
Lower total returns historically

The Verdict

VYM is broader and cheaper; DVY is more income-tilted with heavy utilities exposure. VYM's 0.04% expense beats DVY's 0.38% by a meaningful margin. DVY's heavy utilities tilt (~22%) makes it more rate-sensitive but also more defensive. DVY currently yields about 3.5% versus roughly 2.4% for VYM, but VYM's lower fee compounds materially over decades.

Best for

VYM

Cost-conscious investors wanting broad high-yield exposure

Best for

DVY

Income investors who want defensive utility/financial tilt with dividend-growth screens

Strategy Summary

VYM

Tracks the FTSE High Dividend Yield Index — U.S. stocks with above-average forecast dividend yields, excluding REITs. Broad, market-cap-weighted exposure for low-cost income.

DVY

Tracks the Dow Jones U.S. Select Dividend Index — 100 stocks screened on dividend per share growth, payout ratio, and average daily volume, with utilities-heavy exposure.

Frequently Asked Questions

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Disclaimer: This page is for educational purposes only and is not financial, investment, or tax advice. ETF data is sourced from issuer fact sheets and may be slightly out of date. Past performance is not indicative of future results. Always consult a qualified advisor before making investment decisions.