VYM vs. HDV

Last updated Jun 4, 2026

VYM (Vanguard High Dividend Yield ETF) and HDV (iShares Core High Dividend ETF) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while HDV is a Large Cap Value Equities fund tracking the Morningstar Dividend Yield Focus Index. Both are passively managed. Over the past 10 years, VYM returned 11.90%/yr vs 9.26%/yr for HDV. Their correlation of 0.90 suggests significant overlap in exposure. 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

The year-to-date returns for both investments are quite close, with VYM having a 12.47% return and HDV slightly higher at 12.69%. Over the past 10 years, VYM has outperformed HDV with an annualized return of 11.90%, while HDV has yielded a comparatively lower 9.26% annualized return.

VYM

• 1D: -0.43%
• 1M: 3.38%
• YTD: 12.47%
• 6M: 12.01%
• 1Y: 26.16%
• 3Y*: 18.88%
• 5Y*: 11.48%
• 10Y*: 11.90%

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%

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

VYM vs. HDV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	12.47%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
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%

Correlation

The correlation between VYM and HDV is 0.63, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 1, 2011	0.90

Over the past year, the correlation between VYM and HDV has dropped to 0.63 - well below their long-term average of 0.90, suggesting their price drivers have been diverging.

VYM vs. HDV - Sectors Allocation Comparison

Sectors	VYM	HDV
Financial Services	20.5%	11.1%
Technology	17.7%	8.2%
Healthcare	12.2%	16.5%
Industrials	12.1%	1.4%
Energy	9.8%	22.3%
Consumer Defensive	8.1%	24.1%
Consumer Cyclical	6.7%	6.1%
Utilities	5.7%	9.2%
Communication Services	3.5%	0.1%
Basic Materials	3.5%	1.2%
Real Estate	0.0%	-

Return for Risk

VYM vs. HDV — Risk / Return Rank

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

VYM

VYM Risk / Return Rank: 77
VYM Sharpe Ratio Rank: 77
VYM Sortino Ratio Rank: 80
VYM Omega Ratio Rank: 76
VYM Calmar Ratio Rank: 76
VYM Martin Ratio Rank: 75

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

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.

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.

	VYM	HDV	Difference
Sharpe ratio Return per unit of total volatility	2.56	2.10	+0.46
Sortino ratio Return per unit of downside risk	3.65	3.11	+0.54
Omega ratio Gain probability vs. loss probability	1.46	1.36	+0.10
Calmar ratio Return relative to maximum drawdown	3.93	3.95	-0.02
Martin ratio Return relative to average drawdown	14.76	11.02	+3.74
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VYM vs. HDV - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.56, which is comparable to the HDV Sharpe Ratio of 2.10. 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.

Sharpe Ratios by Period

	VYM	HDV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.56	2.10	+0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.81	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.73	0.59	+0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.72	-0.21

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	-0.43%	-2.54%	+2.11%
Average Drawdown Average peak-to-trough decline	-7.19%	-3.09%	-4.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.78%	1.85%	-0.07%

Volatility

VYM vs. HDV - Volatility Comparison

The current volatility for Vanguard High Dividend Yield ETF (VYM) is 2.77%, while iShares Core High Dividend ETF (HDV) has a volatility of 3.19%. 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	2.77%	3.19%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	7.67%	7.56%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	10.28%	9.73%	+0.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.96%	12.82%	+1.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.34%	15.73%	+0.61%

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 2.19%, less than HDV's 2.91% 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%
VYM Vanguard High Dividend Yield ETF	2.19%	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 0.63, 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 (3.19%) compared to VYM (2.77%). 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 11.90% vs 9.26% for HDV. On fees, VYM is cheaper at 0.04% per year. On volatility, VYM has been the lower-risk option at 2.77%. 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 11.90% return vs 9.26%. 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 2.91%, compared with 2.19% for VYM.

What is the main difference between VYM and HDV?

VYM is categorized as Dividend, while HDV is Large Cap Value Equities. 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 (2.56 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.