Higher Yield or Broader Dividend Diversification? VYM vs. HDV

2026-06-02 23:21:42 ET

The choice between Vanguard High Dividend Yield ETF (NYSEMKT:VYM) and iShares Core High Dividend ETF (NYSEMKT:HDV) involves balancing the lower cost and broader diversification of the Vanguard fund against the higher current yield of the iShares fund.

Both exchange-traded funds (ETFs) focus on domestic stocks with attractive payouts, yet they employ very different screening methods. While the iShares fund targets a concentrated group of sustainable high-yielders, VYM tracks an index of U.S. companies forecasted to have above-average dividend yields, producing a much broader dividend portfolio than HDV.

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

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