ETF Versus

HDV vs VYM

iShares Core High Dividend ETF vs Vanguard High Dividend Yield Index Fund ETF Shares

Last updated: 2026-04-02

HDV iShares

iShares Core High Dividend ETF (HDV) is an exchange-traded fund issued by iShares that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a low expense ratio of 0.08%. The fund offers an attractive dividend yield of 2.96%. Launched in 2011, the fund has a 15-year track record.

AUM: $13.5B ER: 0.08% Yield: 2.96% Since: Mar 29, 2011
VYM Vanguard

Vanguard High Dividend Yield Index Fund ETF Shares (VYM) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 2.37%. Launched in 2006, the fund has a 20-year track record.

AUM: $71.3B ER: 0.04% Yield: 2.37% Since: Nov 10, 2006

Quick Verdict

VYM has a slightly lower expense ratio (0.04% vs 0.08%), saving about $80 per $10,000 over 10 years. VYM has edged ahead over the past year (15.0% vs 11.2%). Income investors may prefer HDV for its higher yield (3.0% vs 2.4%).

Key Metrics

Metric HDV VYM
Expense Ratio 0.08% 0.04%
Dividend Yield 3.0% 2.4%
Fund Family iShares Vanguard
Category US Dividend US Dividend

Performance Chart

Indexed to 100 at start (5-year comparison)

90 103 116 129 142 155 2021-04 2022-06 2023-09 2024-12 2026-04
HDV +39.8%
VYM +44.6%

Performance Comparison

Period HDV VYM Difference
1 Month -4.43% -4.59% +0.16%
3 Months +9.57% +2.20% +7.37%
6 Months +9.49% +4.52% +4.97%
YTD +9.57% +2.20% +7.37%
1 Year +11.17% +14.98% -3.81%
3 Years +30.22% +39.18% -8.96%
5 Years +39.76% +44.55% -4.79%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period HDV Fees VYM Fees You Save
$10.000 10 years $159 $80 $80
$10.000 20 years $686 $344 $342
$10.000 30 years $2.212 $1.112 $1.100
$50.000 10 years $797 $399 $398
$50.000 30 years $11.061 $5.560 $5.501
$100.000 30 years $22.123 $11.121 $11.002

Risk Metrics

Based on 5 years of daily returns

Metric HDV VYM
Annualized Volatility 13.0% 14.0%
Max Drawdown -16.9% -17.5%
Sharpe Ratio 0.24 0.28

Dividend Comparison

Metric HDV VYM
Annual Dividend (per share) $3.96 $3.51
Dividend Yield 2.96% 2.37%
Distribution Frequency Quarterly Quarterly

Top Holdings

6 of top 10 holdings overlap (60% overlap in top holdings)

HDV Top Holdings

NameWeight
Exxon Mobil CorporationXOM9.48%
Chevron CorporationCVX7.13%
Johnson & JohnsonJNJ6.04%
AbbVie Inc.ABBV5.48%
The Procter & Gamble CompanyPG4.40%
Philip Morris International Inc.PM4.20%
Merck & Co., Inc.MRK4.20%
The Home Depot, Inc.HD4.05%
The Progressive CorporationPGR3.80%
The Coca-Cola CompanyKO3.77%

VYM Top Holdings

NameWeight
Broadcom Inc.AVGO6.48%
JPMorgan Chase & Co.JPM3.36%
Exxon Mobil CorporationXOM2.83%
Johnson & JohnsonJNJ2.63%
Walmart Inc.WMT2.44%
AbbVie Inc.ABBV1.81%
The Procter & Gamble CompanyPG1.72%
The Home Depot, Inc.HD1.66%
Chevron CorporationCVX1.54%
Caterpillar Inc.CAT1.51%

Which One Should You Choose?

Choose VYM if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose VYM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose HDV if...

you prioritize dividend income and want higher regular distributions from your portfolio.

Either works if...

you just need broad us dividend exposure. Both are solid options — pick whichever your brokerage offers commission-free.

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