Dividend ETFs: HDV Offers Higher Yield Than VIG

11 hours ago 2

Jake Lerch, The Motley Fool

Sat, January 10, 2026 astatine 3:32 PM CST 5 min read

VIG has delivered stronger caller returns and holds a overmuch larger, much diversified portfolio than HDV
HDV offers a higher dividend output and little volatility, with heavier vulnerability to antiaircraft and vigor sectors
VIG costs somewhat little to ain and trades with precocious liquidity, but its output is astir fractional that of HDV
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The examination betwixt iShares Core High Dividend ETF (NYSEMKT:HDV) and Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) reveals cardinal differences successful dividend yield, assemblage focus, and diversification that could entreaty to chiseled income and maturation preferences.

Both HDV and VIG people U.S. stocks with a dividend emphasis, but their approaches diverge: HDV concentrates connected higher-yielding companies, portion VIG seeks firms with a accordant grounds of increasing dividends. This investigation explores however their costs, performance, risk, and portfolio constitution stack up for investors weighing income versus maturation potential.

Metric

HDV

VIG

Issuer	IShares	Vanguard
Expense ratio	0.08%	0.05%
1-yr instrumentality (as of 2026-01-02)	12.0%	14.4%
Dividend yield	3.2%	2.0%
Beta	0.64	0.85
AUM	$12.0 billion	$102.0 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VIG is marginally little costly to own, with an disbursal ratio of 0.05% compared to HDV’s 0.08%, and it offers importantly greater standard with assets nether absorption of astir 10 times that of HDV. However, HDV pays a overmuch higher dividend yield, which could entreaty to those prioritizing income.

Metric

HDV

VIG

Max drawdown (5 y)	-15.41%	-20.39%
Growth of $1,000 implicit 5 years	$1,683	$1,737

VIG tracks large-cap U.S. companies that person consistently accrued their dividends, resulting successful a portfolio of 338 holdings with a notable tilt toward Technology (30%), Financial Services (21%), and Healthcare (15%). Its apical holdings -- Broadcom (NASDAQ:AVGO), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL)-- bespeak this assemblage slant. The fund’s astir 20-year way grounds and wide diversification whitethorn entreaty to those seeking dependable maturation from dividend growers.

HDV, successful contrast, focuses much narrowly connected 74 U.S. stocks with higher existent yields, starring to greater weighting successful Consumer Defensive, Energy, and Healthcare sectors. Its largest positions -- Exxon Mobil (NYSE:XOM), Johnson & Johnson (NYSE:JNJ), and Chevron (NYSE:CVX)-- underscore this defensive, income-oriented approach. Compared to VIG, HDV’s assemblage premix and concentrated portfolio whitethorn entreaty to those prioritizing output and little volatility.