VYM VS WDIV
4 min read
By Beqa Bumbeishvili, ETF Insider

VYM VS WDIV

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, providing investors with diversified exposure to various sectors and asset classes. In this article, we will conduct a thorough analysis of two popular ETFs: VYM (Vanguard High Dividend Yield ETF) and WDIV (SPDR S&P Global Dividend ETF). This comparison will delve into key aspects of these ETFs, including their tickers, full names, issuers, sectors, top holdings, capitalization, investment strategies, tracking methods, and exposure.

VYM Vs WDIV: Overview

VYM and WDIV are both ETFs that focus on dividend-paying stocks, but they have distinct approaches to achieving their investment objectives. VYM seeks to track the performance of high-dividend-yielding U.S. companies, while WDIV aims to provide exposure to global dividend-paying companies. This fundamental difference in scope significantly influences the portfolio composition and risk profiles of these ETFs.

VYM Vs WDIV: Sectors and Top Holdings

The VYM ETF is primarily concentrated in sectors such as Consumer Discretionary, Financials, and Technology. Its top holdings include familiar names like Microsoft, Apple, and Johnson & Johnson. In contrast, WDIV's holdings span a broader spectrum of sectors due to its global focus. Investors considering these ETFs should analyze sector allocation and top holdings to align their investments with their financial goals.

VYM  overlap VYM VS WDIVVYM overlap VYM VS WDIV

VYM Vs WDIV: Capitalization and Investment Strategy

VYM boasts a substantial Asset Under Management (AUM) due to its popularity among income-focused investors. Its investment strategy centers around tracking an index of U.S. companies with high dividend yields. WDIV, on the other hand, seeks to generate consistent income from dividend-paying stocks worldwide. The contrast in capitalization and investment strategy underscores the different ways these ETFs cater to income-seeking investors.

VYM Vs WDIV: Tracking Methods and Exposure

VYM employs a strategy of replicating the performance of the FTSE High Dividend Yield Index, which consists of U.S. companies with attractive dividend yields. WDIV, however, tracks the S&P Global Dividend Aristocrats Index, which includes dividend-paying companies from around the world that have a history of consistent dividend growth. Understanding these tracking methodologies helps investors grasp how these ETFs provide exposure to dividend-paying equities.

Conclusion

VYM and WDIV represent distinct approaches to gaining exposure to dividend-paying stocks, catering to both domestic and global income-seeking investors. To gain deeper insights into these ETFs, including their holdings, correlations, and overlaps, ETF Insider emerges as an invaluable tool. With its user-friendly app, ETF Insider empowers investors with comprehensive information on these financial instruments and more.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services.

Sources:

Vanguard. (n.d.). Vanguard High Dividend Yield ETF (VYM). Retrieved from https://investor.vanguard.com/etf/profile/overview/vym
State Street Global Advisors. (n.d.). SPDR S&P Global Dividend ETF (WDIV). Retrieved from https://www.ssga.com/us/en/individual/etfs/funds/spdr-sp-global-dividend-etf-wdiv

VYM quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the VYM Vanguard High Dividend Yield Index ETF, access our dedicated page now.

Get started

FAQ

  • Why is VYM better than WDIV?

    VYM may be considered better than WDIV for some investors due to its specific focus, offering diversification.

  • Does WDIV beat VYM?

    WDIV's performance relative to VYM will vary over time, depending on market conditions.

  • Should I invest in VYM or WDIV?

    The choice between VYM and WDIV should align with your investment goals, risk tolerance, and desired exposure.

  • Are VYM and WDIV good investments?

    Both VYM and WDIV can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between VYM and WDIV?

    The correlation between VYM and WDIV can vary over time, reflecting differences in performance.