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ETF Comparison

HDV vs VYM: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Core High Dividend ETF and Vanguard High Dividend Yield ETF covering yield, cost, risk, and income potential.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • HDVInvestors who want a quality-dividend tilt rather than the whole market.
  • VYMInvestors who want simple, diversified core exposure in one low-cost fund.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

HDV has outpaced VYM over the trailing twelve months, posting a 17.85% total return against 13.62%. The picture flips over 10 years, though — VYM has compounded at 11.41% a year, ahead of HDV at 9.49%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulative3Y annualized5Y annualized10Y annualizedSince Mar 2011Volatility Sharpe Sortino Max drawdown
HDV17.15%17.85%16.66%11.86%9.49%10.57%11.6%0.951.36-10.5%
VYM10.00%13.62%18.48%11.55%11.41%11.83%12.4%1.011.46-14.5%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Mar 2011” measures every fund from March 31, 2011 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricHDVVYM
Full nameiShares Core High Dividend ETFVanguard High Dividend Yield ETF
IssueriSharesVanguard
Underlying indexMorningstar Dividend Yield Focus IndexFTSE High Dividend Yield Index
Last Close$28.04 as of October 2, 2026$156.46 as of October 2, 2026
Distribution rate2.40%2.27%
Trailing 12-month yield3.04%2.35%
Distribution Safety Score™ 7995
Safety-Adjusted Yield 1.90%2.16%
Expense ratio0.08%0.04%
AUM$14.7B$80.2B
Distribution frequencyMonthlyQuarterly
ObjectiveSeeks to track the Morningstar Dividend Yield Focus Index, investing at least 80% of assets in income-paying U.S. securities screened for company quality and financial health.Seeks to track the performance of the FTSE High Dividend Yield Index, which offers exposure to dividend-paying large-cap companies that exhibit value characteristics within the U.S. equity market. The index includes stocks with a history of paying above-average dividends.
Asset classEquityEquity
Inception date03/29/201111/10/2006
Beta0.290.66
Last dividend$0.056$0.887
Ex-dividend date09/16/202609/18/2026

Bottom lineChoose HDV if you want a quality-dividend tilt rather than the whole market. Choose VYM if you want simple, diversified core exposure in one low-cost fund.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs466
Total AUM$4683B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on HDV.

See all iShares ETFs
Vanguard
ETFs116
Total AUM$4676B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VYM.

See all Vanguard ETFs

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Quick verdict

HDV (iShares Core High Dividend ETF) and VYM (Vanguard High Dividend Yield ETF) are both dividend ETFs, but they take different approaches.

HDV offers the higher yield at 2.40% vs 2.27% for VYM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VYM is cheaper with an expense ratio of 0.04% compared to 0.08%.

They have different reference exposures: HDV is linked to Morningstar Dividend Yield Focus Index while VYM is linked to FTSE High Dividend Yield Index, which means their performance drivers differ.

VYM is the larger fund by assets ($80.2B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose HDV

iShares Core High Dividend ETF

  • Want a quality-dividend tilt — screened payers rather than the broad index.
  • Prefer lower volatility — a beta of 0.3 vs 0.7 for VYM.

Choose VYM

Vanguard High Dividend Yield ETF

  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.04% expense ratio vs 0.08% for HDV.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, HDV would generate roughly $20.00 cash per distribution, while VYM would produce $56.75 cash per distribution, at current distribution rates.

HDV yield2.40%
VYM yield2.27%
Cash diff on $10K$36.75

Cost & efficiency

Over 10 years on $10,000, HDV would cost approximately $80 in fees vs $40 for VYM (simplified, not compounded). The $40.00 difference may be offset by yield or performance.

HDV ER0.08%
VYM ER0.04%

Strategy & risk

HDV tracks Morningstar Dividend Yield Focus Index, while VYM tracks FTSE High Dividend Yield Index. Beta is 0.29 for HDV and 0.66 for VYM, making HDV the less volatile of the two by this measure.

HDV beta0.29
VYM beta0.66

Fund details

HDV is managed by iShares (launched 03/29/2011) with $14.7B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $80.2B in assets.

HDV AUM$14.7B
VYM AUM$80.2B
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Frequently asked questions

What is the current distribution rate for HDV and VYM?

HDV currently distributes 2.40% and VYM 2.27%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is HDV or VYM better for dividend income?

It depends on your goals. HDV currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between HDV and VYM?

HDV (iShares Core High Dividend ETF) tracks Morningstar Dividend Yield Focus Index, while VYM (Vanguard High Dividend Yield ETF) tracks FTSE High Dividend Yield Index. They are issued by iShares and Vanguard respectively.

Can I hold both HDV and VYM?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is HDV or VYM safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VYM scores 95, HDV scores 79, so VYM's payout currently looks the more resilient of the two. HDV has also shown lower price volatility (beta 0.29 vs 0.66 for VYM). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, HDV or VYM?

HDV has an expense ratio of 0.08% while VYM charges 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in HDV vs VYM generate?

At current rates, $10,000 in HDV would generate roughly $20.00 cash per distribution ($240.00 annually). The same in VYM would produce about $56.75 cash per distribution ($227.00 annually).

Which has performed better historically, HDV or VYM?

HDV has outpaced VYM over the trailing twelve months, posting a 17.85% total return against 13.62%. The picture flips over 10 years, though — VYM has compounded at 11.41% a year, ahead of HDV at 9.49%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

HDV vs VYM — at a glance

Generated October 3, 2026.

Overview

HDV and VYM are both large-cap U.S. dividend ETFs that track different high-yield indexes, but they differ meaningfully in their selection criteria, volatility profile, and asset base. HDV emphasizes quality and financial health through Morningstar screening, while VYM follows FTSE's value-tilted methodology and has built a substantially larger asset pool. Both charge minimal fees, but their underlying stock overlap and risk exposures are not identical.

How they differ

The biggest distinction is selection methodology: HDV explicitly screens for company quality and financial health before selecting high-dividend payers, while VYM captures dividend-paying large-cap value stocks without the same quality filter. The most significant structural difference is scale and volatility: VYM holds $80.2B in assets against HDV's $14.7B, and VYM's beta of 0.66 suggests roughly twice the market sensitivity of HDV's 0.29—meaning HDV's quality tilt delivers material downside dampening. Expense ratios are negligible for both (0.08% for HDV, 0.04% for VYM), so cost is not a differentiator.

Who each is best for

HDV: Fits investors seeking lower portfolio volatility and a stricter quality gate, particularly those comfortable with a narrower selection universe and monthly income timing.

VYM: Fits investors who want larger asset-base stability and broader large-cap value exposure, and are willing to accept higher beta and a quarterly payout schedule in exchange for deeper liquidity and wider diversification.

Key risks to know

  • Quality-filter exclusion (HDV): The emphasis on financial health and dividend safety may screen out companies that are sound but cyclically stressed, potentially missing opportunities during value recoveries or leaving HDV underexposed to certain sectors.
  • Value-tilt concentration (VYM): FTSE's value methodology may create larger holdings in interest-rate-sensitive sectors (utilities, REITs, telecoms), exposing VYM to steeper drawdowns if rate expectations shift sharply upward.
  • Beta divergence: HDV's low beta of 0.29 suggests defensive positioning that may underperform in strong bull markets; VYM's 0.66 carries more market participation, which can amplify losses in sharp selloffs.
  • Index methodology divergence: The underlying indexes track different company universes and weighting schemes, meaning their top holdings, sector allocations, and historical returns will diverge in ways not fully captured by yield alone. Neither is objectively superior—the choice hinges on whether you prefer defensive positioning or market-pace participation. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

What the distribution rate really tells you Why a high yield isn't high income How to read a fund's stats

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These comparisons follow the Dividend Vision methodology.