3 Low-Cost ETFs Spreading Income Across Hundreds of Holdings. One Still Puts 7.35% Behind a Single Company

Vanguard High Dividend Yield ETF (NYSEARCA:VYM) reported 616 positions in its N-PORT filing dated July 31, 2026. In that same filing, Broadcom (NASDAQ:AVGO | AVGO Price Prediction) made up 7% of the fund’s net assets. A fund can own hundreds of companies and still put a big piece of your money into one of them.

The other two funds here are the iShares Core Dividend Growth ETF (NYSEARCA:DGRO) and the Vanguard Morningstar Value ETF (NYSEARCA:VTV). Each of the three is cheap and spread across hundreds of stocks, but they pick stocks differently. DGRO looks for dividend growth, VYM looks for high current yield, and VTV looks for low valuations. VTV is the less obvious choice because it was built to buy cheap stocks, and its income is a result of what it holds.

DGRO Filters Out Stressed Payers Before Buying Anything

DGRO tracks a dividend growth index from Morningstar. That index only includes companies with a regular record of raising their dividends. It also removes any stock whose yield lands in the top 10% of the eligible universe. That second rule matters because a very high yield often means the market expects a dividend cut, so DGRO drops those names before buying.

The fund’s N-PORT filing dated July 31, 2026, listed 394 positions. That count includes at least one futures contract, so it reflects positions rather than distinct companies. The weights are fairly even at the top. JPMorgan Chase (NYSE:JPM) had a reported weight of 3%, and Broadcom came in at 3%.

DGRO charges 0.08%, according to its prospectus dated August 31, 2026. That is the highest fee of the three, and filtering for growth can mean less income today.

Quarterly payouts move around. Its September distribution was $0.38 per share, up from $0.33 in June, while December 2025 paid $0.45.

VYM Screens for Yield, Then Weights by Company Size

VYM tracks the FTSE High Dividend Yield Index. The index takes U.S. stocks with above-average forecast dividend yields, excludes REITs, and weights each one by market value. This is why Broadcom is so large in the fund. Once a very large company passes the yield screen, its size alone sets its weight.

Net assets were about $99 billion in that July filing. After Broadcom, the next reported weight was JPMorgan at 4%. The fund’s stated expense ratio is 0.04%.

Income can go down as well as up. The September payout was $0.89 per share, down from $0.98 in June. Over the trailing 12 months, the fund’s distributions totaled $3.68 for each share.

VTV Pays Dividends and Buys Cheap Stocks

VTV tracks a large-cap value index from Morningstar. That index used to be the CRSP version until Morningstar acquired CRSP in February 2026. The renaming did not change how the index is built, according to Vanguard. Large companies are ordered by valuation measures, including book-to-price, forward earnings-to-price, and historic earnings-to-price. Dividend yield is one of the measures, and companies without a dividend record can still qualify.

So VTV’s income depends on whatever happens to look cheap, and the fund can own a company that is cutting its dividend. VTV is spread across hundreds of large-cap value stocks, weighted by market value. Its performance has been the best of the three this year, rising 17% year-to-date, compared with 13% for DGRO and 13% for VYM.

VTV’s September payout was $1.02 per share, down from $1.08 in June.

One Chipmaker, Very Different Exposure

Broadcom is the clearest example of how two broad funds can expose you very differently. Both filings are dated July 31, 2026. In VYM, Broadcom was 7% of net assets. In DGRO, it was 3%. VYM gives the same company roughly three times DGRO’s share of assets.

The difference stems from each index’s construction. VYM weights by market value, so a very large chipmaker gets a large weight. DGRO’s growth screen and its approach to weighting keep any single company from taking as much space.

For you, this means a drop in Broadcom’s share price would hurt VYM’s value much more than DGRO’s. People often buy VYM for regular income, but they also end up with a large stake in one semiconductor stock.

These weights are figures from the filing date. They shift as prices move, so check them against each fund’s current holdings page.

What Owning Hundreds of Stocks Does and Doesn’t Do

Holding hundreds of stocks makes it much less likely that one company’s dividend cut will do serious damage to the fund’s total payout. That protection is real, and it is the main reason to own an income fund instead of a handful of individual stocks.

A long holdings list can still give a few holdings oversized weight. VYM’s July filing shows one company at 7% and a long list of positions below 1%. DGRO’s reported weights are more even at the top. VTV weights by market value, so its biggest value stocks carry the most weight. How the money is spread across those holdings matters more for income safety than how many there are, and a fat yield in any one holding is often the market signaling a cut is coming (we listed the seven warning signs in a free dividend trap guide).

VTV Has the Lowest Fee of the Three

VTV charges 0.03%, making it the cheapest of the three.

VYM’s 0.04% puts it in the middle. VTV still undercuts it. DGRO’s 0.08% is the highest of the three. That’s the cost of its dividend-growth screen, though it is still low compared with most income products.

Which Fund Fits Which Investor

DGRO offers the most balanced exposure, keeping any single company from dominating and focusing on companies that keep raising their dividends. VYM fits investors who want more current income and accept a larger Broadcom stake. VTV fits investors who want the lowest fee and buy for valuation. Watch each fund’s next quarterly distribution and holdings filing, especially Broadcom’s weight in VYM.

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