The Vanguard Dividend Appreciation Index Fund ETF (VIG) Delivers Stronger Growth Than the iShares Core High Dividend ETF (HDV)

Core Insights - The Vanguard Dividend Appreciation ETF (VIG) and the iShares Core High Dividend ETF (HDV) differ significantly in dividend yield, sector mix, and risk profile, with VIG offering lower costs but HDV providing higher income [1][2] Cost & Size Comparison - HDV has an expense ratio of 0.08% and AUM of $11.6 billion, while VIG has a lower expense ratio of 0.05% and AUM of $115.1 billion [3] - The 1-year return for HDV is 3.6%, compared to VIG's 8.4%, and HDV has a dividend yield of 3.1%, nearly double that of VIG at 1.6% [3][4] Performance & Risk Analysis - Over the past five years, HDV experienced a maximum drawdown of -15.42%, while VIG had a higher drawdown of -20.39% [5] - The growth of $1,000 over five years is $1,400 for HDV and $1,556 for VIG, indicating VIG's superior long-term performance despite its lower yield [5] Portfolio Composition - VIG focuses on large-cap stocks with a history of annual dividend growth, holding 338 companies, with significant allocations in technology (28%), financial services (22%), and healthcare (15%) [6] - HDV emphasizes higher-yielding companies, with a portfolio dominated by consumer defensive (25%), energy (22%), and healthcare (20%) stocks [7] Dividend Growth - VIG has increased its quarterly payout by 30.15% over the past five years, while HDV's payout increased by only 2.85% during the same period, suggesting VIG may provide more passive income over time [8] Total Return Comparison - Over the last five years, VIG delivered a total return of 72.8%, slightly outperforming HDV's total return of 70.6% [10]