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 VYMI fall intoTier 1: Cornerstone. This suggests they share a similar risk profile and volatility expectation.
| Metric | HDV | VYMI |
|---|---|---|
| Total Return (1Y) | 20.29% | 35.50% |
| NAV Change (1Y) | 8.01% | 32.64% |
| Max Drawdown | -17.04% | -31.68% |
| 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 $13.6B 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.
VYMI (Vanguard International High Dividend Yield) is a conservative dividend growth fund managed by Vanguard. It focuses on generating income through strategic holdings. With $20.0B 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.
In the head-to-head battle of HDV vs VYMI, the choice depends on your specific goal. HDV wins for Immediate Income with a 12.28% yield. However, VYMI 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: 12.28%
$1,023/mo
($12,275/year)
Frequency: quarterly
VYMI
Annual Yield: 2.86%
$239/mo
($2,863/year)
Frequency: quarterly
Income Gap: HDV generates $9,412/year more than VYMI on the same $100k investment.
Over 20 years, that's $188,234 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. VYMI has delivered a superior Total Return of 35.50% 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
VYMI (More Volatile)
Max Drawdown: -31.68%
-$31,680
Worst unrealized loss
Protection Value: HDV saved investors $14,640 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.