Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both KO and VIG fall intoTier 2: Yield Plus. This suggests they share a similar risk profile and volatility expectation.
| Metric | KO | VIG |
|---|---|---|
| Total Return (1Y) | 8.79% | 15.52% |
| NAV Change (1Y) | 1.12% | 10.50% |
| Max Drawdown | -11.14% | -23.01% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
KO (Coca-Cola Co) is a conservative dividend growth fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
VIG (Vanguard Div Appreciation) is a conservative dividend growth fund managed by Vanguard. It focuses on generating income through strategic holdings. With $124.6B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of KO vs VIG, the choice depends on your specific goal. KO wins for Immediate Income with a 7.67% yield. However, VIG is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
KO
Annual Yield: 7.67%
$639/mo
($7,666/year)
Frequency: quarterly
VIG
Annual Yield: 5.02%
$418/mo
($5,015/year)
Frequency: quarterly
Income Gap: KO generates $2,651/year more than VIG on the same $100k investment.
Over 20 years, that's $53,022 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. VIG has delivered a superior Total Return of 15.52% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
KO (More Resilient)
Max Drawdown: -11.14%
-$11,140
Worst unrealized loss
VIG (More Volatile)
Max Drawdown: -23.01%
-$23,010
Worst unrealized loss
Protection Value: KO saved investors $11,870 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: KO demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.