Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: DEO is ratedTier 1 (Cornerstone)while HSBC is ratedTier 2 (Yield Plus).DEO is structurally lower risk than HSBC.
| Metric | DEO | HSBC |
|---|---|---|
| Total Return (1Y) | -10.95% | 41.28% |
| NAV Change (1Y) | -16.49% | 38.82% |
| Max Drawdown | -26.46% | -47.28% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
DEO (Diageo plc) is a conservative dividend growth fund managed by Diageo plc. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
HSBC (HSBC Holdings plc) is a conservative dividend growth fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of DEO vs HSBC, the choice depends on your specific goal. DEO wins for Immediate Income with a 5.54% yield. However, HSBC is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
DEO
Annual Yield: 5.54%
$462/mo
($5,543/year)
Frequency: semi-annual
HSBC
Annual Yield: 2.46%
$205/mo
($2,460/year)
Frequency: quarterly
Income Gap: DEO generates $3,083/year more than HSBC on the same $100k investment.
Over 20 years, that's $61,665 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. HSBC has delivered a superior Total Return of 41.28% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
DEO (More Resilient)
Max Drawdown: -26.46%
-$26,460
Worst unrealized loss
HSBC (More Volatile)
Max Drawdown: -47.28%
-$47,280
Worst unrealized loss
Protection Value: DEO saved investors $20,820 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: DEO demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.