VYM vs. HDV

Last updated Aug 5, 2026

VYM (Vanguard High Dividend Yield ETF) and HDV (iShares Core High Dividend ETF) are both Dividend funds - VYM tracks the FTSE High Dividend Yield Index while HDV tracks the Morningstar Dividend Yield Focus Index. Both are passively managed. Over the past 10 years, VYM returned 11.86%/yr vs 9.60%/yr for HDV. Their correlation of 0.89 means they have usually moved in the same direction. VYM charges 0.04%/yr vs 0.08%/yr for HDV.

Performance

VYM vs. HDV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and iShares Core High Dividend ETF (HDV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VYM achieves a 16.57% return, which is significantly lower than HDV's 19.95% return. Over the past 10 years, VYM has outperformed HDV with an annualized return of 11.86%, while HDV has yielded a comparatively lower 9.60% annualized return.

VYM

• 1D: 1.54%
• 1M: 3.65%
• 6M: 10.11%
• YTD: 16.57%
• 1Y: 25.99%
• 3Y*: 18.31%
• 5Y*: 12.56%
• 10Y*: 11.86%
• ALL TIME*: 9.48%

HDV

• 1D: 0.24%
• 1M: 2.71%
• 6M: 8.59%
• YTD: 19.95%
• 1Y: 24.72%
• 3Y*: 15.90%
• 5Y*: 12.07%
• 10Y*: 9.60%
• ALL TIME*: 10.81%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
HDV iShares Core High Dividend ETF	$176.49M	$158.01M	$110.76M
VYM Vanguard High Dividend Yield ETF	$218.18M	$204.80M	$205.80M

VYM vs. HDV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	16.57%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
HDV iShares Core High Dividend ETF	19.95%	11.90%	14.16%	1.72%	7.05%	19.45%	-6.48%	20.22%	-3.01%	13.40%

Correlation

The correlation between VYM and HDV is 0.54, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.54
Correlation (3Y) Balances recent behavior with more history.	0.73
Correlation (5Y) Shows whether the relationship held over a longer period.	0.82
Correlation (10Y) Provides a long-term view across more market conditions.	0.87
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011	0.89

Over the past year, the correlation between VYM and HDV has dropped to 0.54 - well below their long-term average of 0.89, suggesting their price drivers have been diverging.

VYM vs. HDV - Sectors Allocation Comparison

Sectors	VYM	HDV
Financial Services	21.0%	4.7%
Technology	17.8%	0.9%
Healthcare	13.2%	23.9%
Industrials	12.6%	2.8%
Energy	8.6%	19.8%
Consumer Defensive	8.1%	24.3%
Consumer Cyclical	6.8%	9.3%
Utilities	5.7%	8.2%
Basic Materials	3.3%	0.8%
Communication Services	3.0%	5.2%
Real Estate	0.0%	-

Return for Risk

VYM vs. HDV — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VYM

VYM Risk / Return Rank: 90
VYM Sharpe Ratio Rank: 92
VYM Sortino Ratio Rank: 92
VYM Omega Ratio Rank: 91
VYM Calmar Ratio Rank: 88
VYM Martin Ratio Rank: 88

HDV

HDV Risk / Return Rank: 88
HDV Sharpe Ratio Rank: 88
HDV Sortino Ratio Rank: 91
HDV Omega Ratio Rank: 85
HDV Calmar Ratio Rank: 93
HDV Martin Ratio Rank: 85

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VYM vs. HDV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and iShares Core High Dividend ETF (HDV). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VYM	HDV	Difference
Sharpe ratio: Return per unit of total volatility	2.55	2.30	+0.25
Sortino ratio: Return per unit of downside risk	3.66	3.47	+0.19
Omega ratio: Gain probability vs. loss probability	1.47	1.40	+0.07
Calmar ratio: Return relative to maximum drawdown	3.90	4.80	-0.90
Martin ratio: Return relative to average drawdown	14.66	13.10	+1.56

VYM vs. HDV - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.55, which is comparable to the HDV Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of VYM and HDV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VYM vs. HDV - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, which is greater than HDV's maximum drawdown of -37.04%. Use the drawdown chart below to compare losses from any high point for VYM and HDV.

Drawdown Indicators

	VYM	HDV	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-37.04%	-19.94%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-5.18%	-1.51%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-10.49%	-3.97%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-15.42%	-0.42%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-37.04%	+1.83%
Current Drawdown Current decline from peak	0.00%	-1.48%	+1.48%
Average Drawdown Average peak-to-trough decline	-7.14%	-3.06%	-4.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.78%	1.89%	-0.11%

Volatility

VYM vs. HDV - Volatility Comparison

The current volatility for Vanguard High Dividend Yield ETF (VYM) is 2.79%, while iShares Core High Dividend ETF (HDV) has a volatility of 4.30%. This indicates that VYM experiences smaller price fluctuations and is considered to be less risky than HDV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	HDV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.79%	4.30%	-1.51%
Volatility (6M) Calculated over the trailing 6-month period	7.55%	8.66%	-1.11%
Volatility (1Y) Calculated over the trailing 1-year period	10.28%	10.81%	-0.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.88%	12.94%	+0.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.31%	15.79%	+0.52%

VYM vs. HDV - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than HDV's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VYM vs. HDV - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.20%, less than HDV's 3.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDV iShares Core High Dividend ETF	3.07%	3.22%	3.67%	3.82%	3.56%	3.47%	4.07%	3.27%	3.67%	3.27%	3.28%	3.92%
VYM Vanguard High Dividend Yield ETF	2.20%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VYM and HDV in my portfolio?

VYM and HDV have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VYM or HDV?

HDV has higher volatility (4.30%) compared to VYM (2.79%). In terms of maximum drawdown, VYM dropped -56.98% vs HDV's -37.04%.

Which ETF is better, VYM or HDV?

On 10-year performance, VYM leads with 11.86% vs 9.60% for HDV. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VYM or HDV?

Over the 10-year period, VYM has performed better with a 11.86% return vs 9.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYM or HDV?

VYM is cheaper with a 0.04% expense ratio, compared with 0.08% for HDV.

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

HDV has the higher dividend yield at 3.07%, compared with 2.20% for VYM.

What is the main difference between VYM and HDV?

VYM tracks FTSE High Dividend Yield Index, while HDV tracks Morningstar Dividend Yield Focus Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VYM and 0.08% for HDV.

Which has better risk-adjusted returns?

VYM currently has the higher Sharpe Ratio (2.55 vs 2.30), 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.