VYM vs HDV: Head-to-Head Comparison
VYM vs HDV: Vanguard High Dividend Yield ETF has an expense ratio of 0.06% while iShares Core High Dividend ETF charges 0.08%. VYM holds 550 securities vs HDV's 75. 5-year returns: 10.50% vs 7.50%.
Last updated: April 2026
Dividend
Quick Verdict
VYM edges out HDV with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | VYM | HDV |
|---|---|---|
| Expense Ratio | 0.06% | 0.08% |
| AUM | $60.0B | $11.0B |
| Dividend Yield | 2.80% | 3.50% |
| Holdings | 550 | 75 |
| 1-Year Return | 15.80% | 8.00% |
| 5-Year Return (Ann.) | 10.50% | 7.50% |
| 10-Year Return (Ann.) | 9.80% | 8.00% |
| Beta | 0.85 | 0.72 |
| P/E Ratio | 17.5 | 16.0 |
VYM 5-year annualized return is 10.50% compared to HDV's 7.50%. Over 10 years, VYM returned 9.80% vs HDV's 8.00%.
View data table
| Period | VYM Return | HDV Return |
|---|---|---|
| YTD | 2.10% | 1.80% |
| 1 Year | 15.80% | 8.00% |
| 3 Year | 7.80% | 6.50% |
| 5 Year | 10.50% | 7.50% |
| 10 Year | 9.80% | 8.00% |
Key Differences Between VYM and HDV
VYM (Vanguard High Dividend Yield ETF) is a high dividend fund managed by Vanguard. VYM tracks an index of U.S. stocks that are forecasted to have above-average dividend yields, providing broad exposure to large-cap value companies. It holds around 550 stocks, making it more diversified than most dividend ETFs. Beginners who want income from their investments find VYM appealing because it combines a solid yield with Vanguard's trademark low costs and broad diversification.
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.
The most notable differences are in fees (0.06% vs 0.08%), number of holdings (550 vs 75), and 5-year returns (10.50% vs 7.50%).
VYM vs HDV multi-factor comparison: VYM has a 0.06% expense ratio, 10.50% 5-year return, 550 holdings, 0.85 beta, and 2.80% yield. HDV has 0.08% expense ratio, 7.50% 5-year return, 75 holdings, 0.72 beta, and 3.50% yield.
View data table
| Metric | VYM | HDV |
|---|---|---|
| Expense Ratio | 0.06% | 0.08% |
| 5-Year Return | 10.50% | 7.50% |
| Holdings | 550 | 75 |
| Beta | 0.85 | 0.72 |
| Dividend Yield | 2.80% | 3.50% |
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Holdings Overlap Analysis
25%
Holdings Overlap
VYM and HDV share only 25% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
VYM and HDV share 25% of their top holdings (low overlap). VYM has 550 total holdings and HDV has 75. Common holdings include XOM, JNJ, ABBV.
View data table
| Metric | VYM | HDV |
|---|---|---|
| Overlap | 25% | 25% |
| Unique Holdings | 75% | 75% |
| Total Holdings | 550 | 75 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VYM
Fee cost: $515
HDV
Fee cost: $686
Over 20 years, the fee difference amounts to $171 on a $10,000 investment. VYM saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, VYM (0.06% fee) grows to $46,094 while HDV (0.08% fee) grows to $45,924. The fee difference costs $170.
View data table
| Year | VYM Value | HDV Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,653 | $14,639 |
| 10 | $21,470 | $21,430 |
| 15 | $31,458 | $31,371 |
| 20 | $46,094 | $45,924 |
Which One Should a Beginner Choose?
Choose VYM if: You want income investors who want high dividends with broad diversification across 550+ stocks, conservative investors seeking a value-oriented approach with defensive characteristics, those who prefer vanguard's indexing philosophy applied to high-dividend stocks. It's managed by Vanguard with an expense ratio of 0.06%.
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%.
Can You Own Both VYM and HDV?
Absolutely! With only 25% overlap, VYM and HDV 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.
Frequently Asked Questions
Should I buy VYM or HDV?▾
VYM edges out HDV with a stronger Beginner Suitability Score (9.5 vs 9). It offers lower fees for new investors. However, both are solid options. VYM is best for investors who want income investors who want high dividends with broad diversification across 550+ stocks, while HDV is better suited for income investors who want quality screening to reduce the risk of dividend cuts.
What is the difference between VYM and HDV?▾
VYM (Vanguard High Dividend Yield ETF) tracks high dividend investments with 550 holdings and a 0.06% expense ratio. HDV (iShares Core High Dividend ETF) focuses on high dividend with 75 holdings at 0.08%. Their top holdings overlap by 25%.
Can I own both VYM and HDV?▾
Yes! With only 25% holdings overlap, VYM and HDV complement each other well. Owning both gives you broader diversification.