HDV vs VYM
iShares Core High Dividend ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. HDV delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | HDV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.04% | |
| AUM | $15.0B | $81.6B | |
| Dividend Yield | 3.07% | 2.24% | |
| Holdings | 81 | 616 | |
| YTD Return | +23.87% | +15.34% | |
| 1Y Return | +25.87% | +23.24% | |
| 3Y Return (annualized) | +17.58% | +19.22% | |
| 5Y Return (annualized) | +12.82% | +12.21% | |
| Volatility (annualized) | 13.1% | 14.6% | |
| Max Drawdown | -37.0% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 29, 2011 | Nov 10, 2006 |
HDV vs VYM Performance
iShares Core High Dividend ETF (HDV) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HDV returned +25.87% while VYM returned +23.24%. Year to date, HDV is up 23.87% versus a gain of 15.34% for VYM.
Over three years, HDV compounded at +17.58% per year against +19.22% for VYM; over five years the annualized figures are +12.82% and +12.21% respectively. Across the full 15-year window we track, HDV has the edge at +8.64% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.1% for HDV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -37.0% for HDV and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
HDV charges 0.08% per year while VYM charges 0.04%. On a $10,000 position that is $8 vs $4 annually, a gap of $4 per year that compounds over a long holding period. On income, HDV currently yields 3.07% against 2.24% for VYM.
Holdings Overlap
HDV and VYM share 74 holdings out of 605 unique holdings combined, representing a 26.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HDV or VYM?
HDV has an expense ratio of 0.08% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, HDV or VYM?
Over the past year HDV returned +25.87% vs +23.24% for VYM, so HDV leads on 1-year performance. Over the longest common window we track (15 years), HDV annualized +8.64% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, HDV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.1% for HDV. Worst drawdown: HDV -37.0% vs VYM -58.8%.
Should I hold both HDV and VYM?
HDV and VYM have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between HDV and VYM?
HDV and VYM share 74 common holdings with a 26.2% weight overlap. Combined, they hold 605 unique securities.
Which pays a higher dividend, HDV or VYM?
HDV yields 3.07% while VYM yields 2.24%, so HDV currently pays the higher dividend yield.
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