HDV vs. XYLD

Last updated Jun 4, 2026

HDV (iShares Core High Dividend ETF) and XYLD (Global X S&P 500 Covered Call ETF) are both exchange-traded funds - HDV is a Dividend fund tracking the Morningstar Dividend Yield Focus Index, while XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index. Both are passively managed. Over the past 10 years, HDV returned 9.26%/yr vs 8.25%/yr for XYLD. A 0.58 correlation means they provide meaningful diversification when combined. HDV charges 0.08%/yr vs 0.60%/yr for XYLD.

Performance

HDV vs. XYLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core High Dividend ETF (HDV) and Global X S&P 500 Covered Call ETF (XYLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HDV achieves a 12.69% return, which is significantly higher than XYLD's 4.96% return. Over the past 10 years, HDV has outperformed XYLD with an annualized return of 9.26%, while XYLD has yielded a comparatively lower 8.25% annualized return.

HDV

• 1D: 0.37%
• 1M: 0.29%
• YTD: 12.69%
• 6M: 12.16%
• 1Y: 20.35%
• 3Y*: 14.94%
• 5Y*: 10.32%
• 10Y*: 9.26%

XYLD

• 1D: -0.15%
• 1M: 2.00%
• YTD: 4.96%
• 6M: 6.48%
• 1Y: 17.66%
• 3Y*: 11.27%
• 5Y*: 7.72%
• 10Y*: 8.25%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HDV vs. XYLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDV iShares Core High Dividend ETF	12.69%	11.90%	14.16%	1.72%	7.05%	19.45%	-6.48%	20.22%	-3.01%	13.40%
XYLD Global X S&P 500 Covered Call ETF	4.96%	8.02%	19.49%	11.10%	-12.05%	19.59%	-0.56%	21.41%	-6.09%	16.49%

Correlation

The correlation between HDV and XYLD is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.12
Correlation (3Y) Calculated over the trailing 3-year period	0.30
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Jun 25, 2013	0.58

Over the past year, the correlation between HDV and XYLD has dropped to 0.12 - well below their long-term average of 0.58, suggesting their price drivers have been diverging.

HDV vs. XYLD - Sectors Allocation Comparison

Sectors	HDV	XYLD
Consumer Defensive	24.1%	4.9%
Energy	22.3%	3.5%
Healthcare	16.5%	8.5%
Financial Services	11.1%	11.8%
Utilities	9.2%	2.3%
Technology	8.2%	35.6%
Consumer Cyclical	6.1%	10.2%
Industrials	1.4%	8.3%
Basic Materials	1.2%	1.8%
Communication Services	0.1%	11.2%
Real Estate	-	1.9%

Return for Risk

HDV vs. XYLD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HDV

HDV Risk / Return Rank: 64
HDV Sharpe Ratio Rank: 61
HDV Sortino Ratio Rank: 66
HDV Omega Ratio Rank: 57
HDV Calmar Ratio Rank: 76
HDV Martin Ratio Rank: 61

XYLD

XYLD Risk / Return Rank: 82
XYLD Sharpe Ratio Rank: 81
XYLD Sortino Ratio Rank: 84
XYLD Omega Ratio Rank: 92
XYLD Calmar Ratio Rank: 66
XYLD Martin Ratio Rank: 85

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HDV vs. XYLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Core High Dividend ETF (HDV) and Global X S&P 500 Covered Call ETF (XYLD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HDV	XYLD	Difference
Sharpe ratio: Return per unit of total volatility	2.10	2.71	-0.61
Sortino ratio: Return per unit of downside risk	3.11	3.87	-0.76
Omega ratio: Gain probability vs. loss probability	1.36	1.64	-0.28
Calmar ratio: Return relative to maximum drawdown	3.95	3.35	+0.59
Martin ratio: Return relative to average drawdown	11.02	17.84	-6.83
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HDV vs. XYLD - Sharpe Ratio Comparison

The current HDV Sharpe Ratio is 2.10, which is comparable to the XYLD Sharpe Ratio of 2.71. The chart below compares the historical Sharpe Ratios of HDV and XYLD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HDV	XYLD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.10	2.71	-0.61
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.69	+0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.58	+0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.60	+0.12

Drawdowns

HDV vs. XYLD - Drawdown Comparison

The maximum HDV drawdown since its inception was -37.04%, which is greater than XYLD's maximum drawdown of -33.46%. Use the drawdown chart below to compare losses from any high point for HDV and XYLD.

Drawdown Indicators

	HDV	XYLD	Difference
Max Drawdown Largest peak-to-trough decline	-37.04%	-33.46%	-3.58%
Max Drawdown (1Y) Largest decline over 1 year	-5.18%	-5.29%	+0.11%
Max Drawdown (3Y) Largest decline over 3 years	-10.49%	-15.53%	+5.04%
Max Drawdown (5Y) Largest decline over 5 years	-15.42%	-18.66%	+3.24%
Max Drawdown (10Y) Largest decline over 10 years	-37.04%	-33.46%	-3.58%
Current Drawdown Current decline from peak	-2.54%	-0.15%	-2.39%
Average Drawdown Average peak-to-trough decline	-3.09%	-3.72%	+0.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.85%	0.99%	+0.86%

Volatility

HDV vs. XYLD - Volatility Comparison

iShares Core High Dividend ETF (HDV) has a higher volatility of 3.19% compared to Global X S&P 500 Covered Call ETF (XYLD) at 0.88%. This indicates that HDV's price experiences larger fluctuations and is considered to be riskier than XYLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HDV	XYLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.19%	0.88%	+2.31%
Volatility (6M) Calculated over the trailing 6-month period	7.56%	5.37%	+2.19%
Volatility (1Y) Calculated over the trailing 1-year period	9.73%	6.55%	+3.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.82%	11.22%	+1.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.73%	14.21%	+1.52%

HDV vs. XYLD - Expense Ratio Comparison

HDV has a 0.08% expense ratio, which is lower than XYLD's 0.60% expense ratio.

Dividends

HDV vs. XYLD - Dividend Comparison

HDV's dividend yield for the trailing twelve months is around 2.91%, less than XYLD's 10.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDV iShares Core High Dividend ETF	2.91%	3.22%	3.67%	3.82%	3.56%	3.47%	4.07%	3.27%	3.67%	3.27%	3.28%	3.92%
XYLD Global X S&P 500 Covered Call ETF	10.52%	10.51%	11.54%	10.51%	13.43%	9.07%	7.93%	5.76%	7.12%	5.18%	3.23%	4.65%

Frequently Asked Questions

Can I hold both HDV and XYLD in my portfolio?

HDV and XYLD have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDV or XYLD?

HDV has higher volatility (3.19%) compared to XYLD (0.88%). In terms of maximum drawdown, HDV dropped -37.04% vs XYLD's -33.46%.

Which ETF is better, HDV or XYLD?

On 10-year performance, HDV leads with 9.26% vs 8.25% for XYLD. On fees, HDV is cheaper at 0.08% per year. On volatility, XYLD has been the lower-risk option at 0.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HDV or XYLD?

Over the 10-year period, HDV has performed better with a 9.26% return vs 8.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDV or XYLD?

HDV is cheaper with a 0.08% expense ratio, compared with 0.60% for XYLD.

Which ETF pays a higher dividend yield, HDV or XYLD?

XYLD has the higher dividend yield at 10.52%, compared with 2.91% for HDV.

What is the main difference between HDV and XYLD?

HDV is categorized as Dividend, while XYLD is Derivative Income. HDV tracks Morningstar Dividend Yield Focus Index, while XYLD tracks Cboe S&P 500 BuyWrite Index. They also come from different issuers: iShares and Global X. Their fees differ too: 0.08% for HDV and 0.60% for XYLD.

Which has better risk-adjusted returns?

XYLD currently has the higher Sharpe Ratio (2.71 vs 2.10), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.