HDV vs DVY: Head-to-Head Comparison
Last updated: March 2026 • Dividend
Quick Verdict
DVY edges out HDV with a stronger Beginner Suitability Score (9.5 vs 9). It offers better overall characteristics for new investors.
Side-by-Side Comparison
Key Differences Between HDV and DVY
HDV (iShares Core High Dividend ETF) is a high dividend fund managed by BlackRock. HDV tracks the Morningstar Dividend Yield Focus Index, which selects high-dividend U.S. stocks that also pass financial health screening based on Morningstar's proprietary analysis. This dual focus on yield and quality helps avoid dividend traps by filtering out companies with unsustainable payouts. The fund offers a quality-income approach at a very reasonable expense ratio.
DVY (iShares Select Dividend ETF) is a high dividend fund managed by BlackRock. DVY tracks the Dow Jones U.S. Select Dividend Index, focusing on U.S. companies with a strong track record of consistently paying dividends. It screens for dividend yield, payout ratio, and dividend growth history to find reliable income producers. The fund tends to favor utilities, financials, and consumer staples companies that prioritize returning cash to shareholders.
The most notable differences are in fees (0.08% vs 0.38%), number of holdings (75 vs 100), and 5-year returns (7.50% vs 7.00%).
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Holdings Overlap Analysis
5%
Holdings Overlap
HDV and DVY share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
HDV
Fee cost: $686
DVY
Fee cost: $3,173
Over 20 years, the fee difference amounts to $2,487 on a $10,000 investment. HDV saves you more in fees over time.
Which One Should a Beginner Choose?
Choose HDV if: You want income investors who want quality screening to reduce the risk of dividend cuts, defensive portfolio positioning during uncertain economic environments, cost-conscious dividend investors who want high yield at a low expense ratio. It's managed by BlackRock with an expense ratio of 0.08%.
Choose DVY if: You want retirees who need consistent income from their investment portfolio, income-focused investors willing to pay a higher expense ratio for specialized dividend screening, conservative investors seeking lower-volatility equity exposure through dividend stocks. It's managed by BlackRock with an expense ratio of 0.38%.
Can You Own Both HDV and DVY?
Absolutely! With only 5% overlap, HDV and DVY complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
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Frequently Asked Questions
Should I buy HDV or DVY?▾
DVY edges out HDV with a stronger Beginner Suitability Score (9.5 vs 9). It offers better overall characteristics for new investors. However, both are solid options. HDV is best for investors who want income investors who want quality screening to reduce the risk of dividend cuts, while DVY is better suited for retirees who need consistent income from their investment portfolio.
What is the difference between HDV and DVY?▾
HDV (iShares Core High Dividend ETF) tracks high dividend investments with 75 holdings and a 0.08% expense ratio. DVY (iShares Select Dividend ETF) focuses on high dividend with 100 holdings at 0.38%. Their top holdings overlap by 5%.
Can I own both HDV and DVY?▾
Yes! With only 5% holdings overlap, HDV and DVY complement each other well. Owning both gives you broader diversification.