Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: HDV is ratedTier 1 (Cornerstone)while VYM is ratedTier 2 (Yield Plus).HDV is structurally lower risk than VYM.
| Metric | HDV | VYM |
|---|---|---|
| Total Return (1Y) | 11.80% | 13.38% |
| NAV Change (1Y) | 8.01% | 10.85% |
| Max Drawdown | -17.04% | -23.21% |
| Beta | - | 0.82 |
* 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.
VYM (Vanguard High Div Yield) is a conservative dividend growth fund managed by Vanguard. It tracks the FTSE High Dividend Yield index across approximately 530 positions. With $84.5B in assets under management, this fund has been operational since Nov 2006.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of HDV vs VYM, the choice depends on your specific goal. HDV wins for Immediate Income with a 3.79% yield. However, VYM 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
VYM
Annual Yield: 2.53%
$211/mo
($2,526/year)
Frequency: quarterly
Income Gap: HDV generates $1,266/year more than VYM on the same $100k investment.
Over 20 years, that's $25,310 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. VYM has delivered a superior Total Return of 13.38% 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
HDV (More Resilient)
Max Drawdown: -17.04%
-$17,040
Worst unrealized loss
VYM (More Volatile)
Max Drawdown: -23.21%
-$23,210
Worst unrealized loss
Protection Value: HDV saved investors $6,170 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: HDV 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.