Better Dividend ETF: Vanguard's VYM vs. iShares' HDV

1 week ago 9

Robert Izquierdo, The Motley Fool

Sat, January 3, 2026 astatine 9:52 AM CST 5 min read

VYM has delivered a stronger one-year instrumentality and holds a overmuch broader premix of stocks than HDV.
HDV sports a higher dividend output and a greater tilt toward user antiaircraft and vigor sectors.
VYM’s larger plus basal stands out, but the funds’ trading liquidity is akin based connected mean regular volume.
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The iShares Core High Dividend ETF (NYSEMKT:HDV) and Vanguard High Dividend Yield ETF (NYSEMKT:VYM) disagree astir connected caller performance, yield, assemblage concentration, and portfolio breadth — VYM is broader and much tech-tilted, portion HDV leans antiaircraft and pays a higher yield.

Both HDV and VYM people U.S. companies known for paying above-average dividends, but the funds instrumentality antithetic approaches to diversification and assemblage exposure. This examination looks astatine costs, returns, risk, and the quirks that could substance astir for dividend-focused investors choosing betwixt them.

Metric

HDV

VYM

Issuer	IShares	Vanguard
Expense ratio	0.08%	0.06%
1-yr instrumentality (as of 2025-12-26)	8.1%	12.2%
Dividend yield	3.2%	2.4%
Beta	0.48	0.76
AUM	$12.0 billion	$84.5 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VYM is somewhat much affordable connected fees, but HDV offers a higher dividend payout, which could entreaty to those seeking income implicit outgo minimization.

Metric

HDV

VYM

Max drawdown (5 y)	-15.41%	-15.83%
Growth of $1,000 implicit 5 years	$1,399	$1,601

VYM tracks a wide high-dividend scale with 589 holdings arsenic of its 19.1-year mark. Its assemblage vulnerability leans toward fiscal services (21%), exertion (18%), and healthcare (13%), with ample stakes successful Broadcom (NASDAQ:AVGO), JPMorgan Chase & Co. (NYSE:JPM), and Exxon Mobil Corp. (NYSE:XOM). This wide attack captures a wide swath of the U.S. equity market, including immoderate of the largest dividend payers, and whitethorn entreaty to those seeking diversification.

HDV, by contrast, narrows its absorption to 74 stocks and tilts much toward user antiaircraft (28%), vigor (24%), and healthcare (17%) companies. Its largest positions are successful Exxon Mobil Corp. (NYSE:XOM), Johnson & Johnson (NYSE:JNJ), and Chevron Corp. (NYSE:CVX), making it much concentrated successful accepted antiaircraft and vigor sectors. Both funds are passively managed and bash not present leverage oregon different structural quirks.

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