Want Passive Dividend Income? VIG and HDV Deliver High Yields But Differ on Growth and Sector Allocation

Core Insights - The Vanguard Dividend Appreciation ETF (VIG) and the iShares Core High Dividend ETF (HDV) cater to different investor preferences, with VIG focusing on growth and technology, while HDV emphasizes higher yields and defensive sectors [1][6]. Cost and Size Comparison - HDV has an expense ratio of 0.08% and AUM of $11.7 billion, while VIG has a lower expense ratio of 0.05% and AUM of $115.1 billion [3]. - As of November 30, 2025, HDV's 1-year return is 2.26% and dividend yield is 3.09%, compared to VIG's 1-year return of 8.79% and dividend yield of 1.64% [3]. Performance and Risk Analysis - Over five years, HDV has a max drawdown of -16.52% and a growth of $1,000 to $1,411, while VIG has a max drawdown of -20.40% and a growth of $1,000 to $1,605 [4]. Portfolio Composition - VIG holds 338 stocks with significant allocations in technology (29%), financial services (22%), and healthcare (16%), focusing on companies with a consistent record of dividend growth [5]. - HDV is more concentrated with 75 stocks, primarily in consumer staples (25%), healthcare (22%), and energy (21%), focusing on higher-yielding, established companies [6]. Investment Strategy Insights - HDV is more stable with a lower beta of 0.62 and less severe max drawdown, appealing to income-focused investors [7][8]. - VIG offers growth potential with a focus on technology-oriented stocks, which may lead to higher total returns over time [9][10].