VHYL vs VWRL: Which Vanguard ETF Is Right?
VHYL pays you double the income of VWRL. So why does VWRL keep winning on total return over a decade? The answer is the thing high-yield investors do not want to hear.
Annual dividend on a £50,000 investment
VHYL pays more income up front. VWRL has built more capital over the past decade.
VWRL vs VHYL head to head
| Feature | VWRL | VHYL |
|---|---|---|
| Holdings | ~3,700 | ~1,800 |
| OCF | 0.22% | 0.29% |
| Dividend yield | ~1.8% | ~3.2% |
| 5-year total return | ~75-85% | ~45-55% |
| Tech weighting | 20-25% | Single digits |
Both Vanguard ETFs, both LSE-listed in GBP. The yield gap costs you total return.
Key takeaways
VWRL tracks the entire global stock market with 3,700+ stocks and a yield around 1.5-2%
VHYL filters for high-dividend stocks only, yielding around 3-3.5% but with less diversification
VWRL has delivered better total returns historically because it includes fast-growing tech stocks
VHYL makes sense if you need income now, but VWRL is the better long-term wealth builder