VYM vs HDV
Two large high-dividend ETFs with different index methodologies and sector tilts. Here’s how VYM and HDV compare for dividend investors — with a calculator for each so you can model the income yourself.
VYM
Vanguard High Dividend Yield ETF
- Type
- High-dividend ETF
- Issuer
- Vanguard
- Pays
- quarterly
VYM tracks the FTSE High Dividend Yield Index, weighting toward established U.S. companies that pay above-average dividends. It aims for a higher current yield than the broad market while keeping a diversified, large-cap profile.
VYM dividend calculatorHDV
iShares Core High Dividend ETF
- Type
- High-dividend ETF
- Issuer
- iShares
- Pays
- monthly
HDV tracks the Morningstar Dividend Yield Focus Index, screening for higher-yielding US companies with quality and financial-health filters. It tilts defensive, with heavy energy, healthcare, and consumer-staples exposure.
HDV dividend calculatorVYM vs HDV dividend, side by side
Current dividend figures for VYM and HDV as of Oct 13, 2026. Yields and payouts change — verify the latest numbers with your broker before investing.
VYM vs HDV at a glance
| VYM | HDV | |
|---|---|---|
| Index it tracks | FTSE High Dividend Yield Index | Morningstar Dividend Yield Focus Index |
| Stocks held | 593 (Sep 30, 2026) | 74 (Oct 15, 2026) |
| Share in the 10 largest | 26.2% | 55.8% |
| Expense ratio | 0.04% | 0.08% |
| How it pays | Quarterly | Monthly since July 2026 |
| Trailing dividend yield | 2.31% (Oct 13, 2026) | 2.93% (Oct 13, 2026) |
| 30-day SEC yield (Sep 30, 2026) | 2.35% | 3.51% |
| Dividend growth, 2021 to 2025 | 3.1% a year | 2.8% a year |
| Total return, 1 year | 12.72% | 17.86% |
| Total return, 10 years | 11.28% a year | 9.43% a year |
From Vanguard’s and iShares’ own fund data, read on October 16, 2026. Returns count reinvested dividends at net asset value, through September 30, 2026.
VYM vs HDV performance by year
| Year | VYM | HDV |
|---|---|---|
| 2025 | +15.43% | +11.88% |
| 2024 | +17.60% | +14.16% |
| 2023 | +6.53% | +1.77% |
| 2022 | -0.42% | +7.06% |
| 2021 | +26.14% | +19.38% |
Calendar-year total return at net asset value, dividends included, from Vanguard and iShares. The higher return each year is marked.
Wide net vs short list
Both funds buy U.S. stocks with above-average dividend yields, but they cast very different nets. Vanguard’s VYM owns almost 600 of them. Its ten biggest holdings make up about a quarter of the fund, and financials were its largest sector at 20.4%.
iShares’ HDV picks just 75 high yielders that pass two Morningstar screens, one for business quality and one for financial health. It held 74 stocks on October 15, 2026, and the top ten were more than half the fund. Exxon Mobil alone was 9.41% and Chevron 7.10%. Consumer staples made up 27.0% and energy 24.8%.
How much do VYM and HDV overlap?
Matching the two holdings lists, every one of HDV’s 74 stocks also sits in VYM. Together they make up 25.37% of VYM, using VYM’s September 30 list.
So HDV is close to a concentrated slice of VYM. The difference is in the weights: names such as Exxon Mobil, Chevron, AbbVie and Procter & Gamble carry far more weight in HDV, while VYM’s two largest holdings, Broadcom and JPMorgan Chase, are not in HDV at all. HDV had only 4.5% in financials and 0.5% in technology.
What dividend does each pay?
Over the 12 months to Oct 13, 2026, VYM yielded about 2.31% and HDV about 2.93%. On $10,000, that is about $231 a year from VYM and $293 from HDV. The forward-looking 30-day SEC yields on September 30 were 2.35% for VYM and 3.51% for HDV.
VYM pays four times a year. HDV split its shares 5-for-1 in April 2026 and switched from quarterly to monthly payouts in July, so older HDV figures look five times larger.
Dividend growth and returns
Neither has grown its payout fast lately. From 2021 to 2025, VYM’s dividend per share rose about 3.1% a year and HDV’s about 2.8%. In 2025 alone VYM’s edged up 0.2% while HDV’s fell 5.0%.
On total return, HDV came out ahead only in 2022, and VYM won the other 4. The order flipped between 2021 and 2022: VYM’s best lead was 2021 (26.14% against 19.38%), while HDV’s one win was 2022 (7.06% against -0.42%), a gap of 7.48 percentage points.
Over the year to September 30, 2026, HDV led with 17.86% against 12.72%. Over ten years VYM did better, at 11.28% a year against 9.43%.
Which is better: HDV, VYM or SCHD?
This page does not rank funds. VYM is the broadest and cheapest of the two compared here; HDV pays a higher yield from a short, energy- and staples-heavy list. Schwab’s SCHD takes a third approach, screening for dividend history and quality and capping each stock at 4%.
Fund facts, holdings and returns come from Vanguard’s and iShares’ own data; the overlap comes from matching every holding. Dividend histories come from the researched VYM and HDV guides, checked against at least two public payment records. Last checked Oct 16, 2026. Sources: iShares — HDV fund page; Vanguard — VYM fund page; stockanalysis.com — HDV dividend history; stockanalysis.com — VYM dividend history. Past returns do not predict future ones. Not financial advice.
Related dividend guides
How VYM and HDV differ
VYM — VYM tracks the FTSE High Dividend Yield Index, weighting toward established U.S. companies that pay above-average dividends. It aims for a higher current yield than the broad market while keeping a diversified, large-cap profile.
HDV — HDV tracks the Morningstar Dividend Yield Focus Index, screening for higher-yielding US companies with quality and financial-health filters. It tilts defensive, with heavy energy, healthcare, and consumer-staples exposure.
In practice the choice comes down to your goal. VYM suits an investor who wants a higher current yield from a diversified large-cap base, while HDV suits one who wants a higher current yield from a diversified large-cap base. The two are not mutually exclusive — plenty of portfolios hold a growth-oriented fund and an income-oriented one together. What matters is matching each to its job and not judging a fund on its headline yield alone.
Rather than compare a single snapshot yield (which moves daily), open each calculator and enter current figures: the VYM calculator and the HDV calculator. To compare long-term compounding head to head, run the same contributions through the dividend reinvestment calculator with each fund’s assumptions.
VYM vs HDV FAQ
- Is HDV a good ETF?
- It depends on what you want. HDV has a higher yield and low cost, but about 25% of it was in energy and its top ten held more than half the money in October 2026.
- Does owning VYM and HDV add diversification?
- Not much. Every HDV stock was already in VYM, so holding both mainly increases the weight of HDV’s 74 names.
- What VYM or HDV stake pays $1,000 a month?
- At trailing yields from Oct 13, 2026, about $519,481 in VYM or $409,556 in HDV, before taxes.
- What's the main difference between VYM and HDV?
- VYM is a high-dividend etf from Vanguard; HDV is a high-dividend etf from iShares. Two large high-dividend ETFs with different index methodologies and sector tilts.
- Does VYM or HDV pay more dividends?
- As of Oct 13, 2026, VYM yields about 2.31% and HDV about 2.93%, so HDV currently pays the higher yield. VYM pays quarterly; HDV pays monthly (since 2026). Yields move daily, so verify current figures and use the calculators below to model the income yourself. Higher-yield funds pay more today, while dividend-growth funds start lower and raise the payout over time.
- Which is better, VYM or HDV?
- Neither is universally better — they suit different goals. VYM fits an investor who wants a higher current yield from a diversified large-cap base; HDV fits one who wants a higher current yield from a diversified large-cap base. Match the fund to your objective, time horizon, and tax situation, and consider a licensed advisor.
- Can I hold both VYM and HDV?
- Many investors do, to blend current income with growth. Just be aware of overlap — if both hold similar large-cap US stocks, you may be less diversified than the two tickers suggest.