Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both HDV and SDY fall intoTier 1: Cornerstone. This suggests they share a similar risk profile and volatility expectation.
| Metric | HDV | SDY |
|---|---|---|
| Total Return (1Y) | 11.80% | 9.07% |
| NAV Change (1Y) | 8.01% | 6.33% |
| Max Drawdown | -17.04% | -17.53% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
HDV (iShares Core High Dividend) is a conservative dividend growth fund managed by iShares. It focuses on generating income through strategic holdings. With $12.0B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
SDY (SPDR S&P Dividend) is a conservative dividend growth fund managed by SPDR. It focuses on generating income through strategic holdings. With $19.9B in assets under management, 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 HDV vs SDY, the choice depends on your specific goal. HDV wins for Immediate Income with a 3.79% yield. However, HDV 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:
HDV
Annual Yield: 3.79%
$316/mo
($3,792/year)
Frequency: quarterly
SDY
Annual Yield: 2.74%
$228/mo
($2,735/year)
Frequency: quarterly
Income Gap: HDV generates $1,056/year more than SDY on the same $100k investment.
Over 20 years, that's $21,127 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. HDV has delivered a superior Total Return of 11.80% over the past year.
What is an Expense Ratio? The annual fee charged by the fund, expressed as a percentage of assets. It's deducted daily from the fund's NAV, making it invisible to most investors—but it compounds over time.
HDV (LOWER COST)
0.080%
Annual expense ratio
SDY (HIGHER COST)
0.350%
Annual expense ratio
20-YEAR FEE IMPACT SIMULATION ($100,000 INITIAL INVESTMENT)
The Hidden Cost of "Just 0.27%": That seemingly small difference of 0.270% annually becomes $5,400 in lost wealth over 20 years. Factor in compound growth, and you're giving up ~$15,721 in potential portfolio value.
💡 Cost Efficiency Winner: HDV is the clear winner for long-term buy-and-hold investors. Lower fees mean more capital compounds in YOUR account, not the fund manager's.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.