Key Points

Vanguard High Dividend Yield ETF carries a reduced expense ratio of 0.04 percent versus 0.08 percent for iShares Core High Dividend ETF.
iShares Core High Dividend ETF features a focused selection of 75 stocks and greater emphasis on defensive areas such as healthcare.
Vanguard High Dividend Yield ETF spreads holdings across more than 600 stocks with increased weight in financials and technology sectors.

Both the Vanguard High Dividend Yield ETF and the iShares Core High Dividend ETF function as foundational choices for investors pursuing income through U.S. dividend stocks.

The Vanguard option delivers wider diversification along with lower costs, while the iShares fund delivers a tighter portfolio and a stronger trailing distribution yield.

Although both target above-average yields, they vary in breadth, sector focus, and fees, suiting distinct dividend strategies.

Review the details below to determine the right fit.

Snapshot (cost and size)

Metric	HDV	VYM
Issuer	iShares	Vanguard
Share price	$27.90 (as of 2026-07-14)	$160.8 (as of 2026-07-14)
Expense ratio	0.08%	0.04%
1-yr total return (as of 2026-07-13)	22.2%	20.3%
Dividend yield	2.8%	2.3%
Beta	0.53	0.73
AUM	$14B	$96.1B

Beta reflects price movement compared with the S&P 500 based on five-year monthly data. The one-year return shows total performance over the past twelve months. Dividend yield uses the trailing twelve-month distribution.

Performance and risk comparison

Metric	HDV	VYM
Max drawdown (5 yr)	(15.40%)	(15.90%)
Growth of $1,000 over 5 years (total return as of 2026-07-14)	$1,717	$1,774

Portfolio Composition

The Vanguard High Dividend Yield ETF follows an index covering 605 stocks for broad U.S. market exposure. Allocations balance financials at 19.6 percent, technology at 16.9 percent, and industrials at 13.9 percent. Top holdings feature Broadcom at 8.51 percent, JPMorgan Chase at 3.14 percent, and Exxon Mobil at 2.53 percent. Launched in 2006, the fund distributed $3.63 per share over the past year for a 2.30 percent yield at the current price.

The iShares Core High Dividend ETF selects just 75 stocks based on yield and sustainability screens. It emphasizes defensive areas with consumer defensive stocks at 24.2 percent and healthcare at 23.5 percent. Leading positions include Exxon Mobil at 7.3 percent, AbbVie at 6.32 percent, and Chevron at 5.7 percent. Launched in 2011, the fund paid $0.79 per share over the trailing twelve months, equating to a 2.80 percent yield.

Implications for Investors

Both ETFs attract income-focused investors seeking reliable dividends. VYM follows the FTSE High Dividend Yield Index by ranking dividend payers on projected twelve-month yield and taking the top half, excluding REITs. Its market-cap weighting favors large, financially robust firms.

HDV applies stricter screens via the Morningstar Dividend Yield Focus Index, selecting companies with solid financial health and economic moats according to proprietary metrics. This limits the fund to the 75 highest-yielding qualifying stocks.

VYM therefore offers wide diversification, consistent income, and strong long-term growth at minimal cost. HDV provides a defensive stance with potentially smaller losses during market declines due to its staples and healthcare emphasis. Although energy names rank high, ExxonMobil and Chevron rank among leading dividend payers in their sector.

Portfolio makeup and diversification matter when choosing between them. Investors may also hold both for steady dividend income through 2026 and afterward.

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*Returns calculated as of July 14, 2026. JPMorgan Chase advertises with Motley Fool Money. The author holds no positions in mentioned securities. Motley Fool maintains positions in and recommends AbbVie, Broadcom, Chevron, JPMorgan Chase, and Vanguard High Dividend Yield ETF under its disclosure policy.

Opinions expressed are those of the author and may not reflect views of Nasdaq, Inc.