Dividend ETFs: HDV Offers Higher Yield Than VIG

Core Insights - The comparison between iShares Core High Dividend ETF (HDV) and Vanguard Dividend Appreciation ETF (VIG) highlights differences in dividend yield, sector focus, and risk, which are crucial for investors considering income versus growth strategies [1][2]. Cost & Size - HDV has an expense ratio of 0.08% while VIG has a lower expense ratio of 0.05% [3][4]. - As of January 2, 2026, HDV's one-year return is 12.0% compared to VIG's 14.4% [3]. - HDV offers a dividend yield of 3.2%, significantly higher than VIG's 2.0% [3][4]. - HDV has assets under management (AUM) of $12.0 billion, while VIG has a much larger AUM of $102.0 billion [3][4]. Performance & Risk Comparison - Over five years, HDV's maximum drawdown is -15.41%, while VIG's is -20.39% [5]. - An investment of $1,000 in HDV would grow to $1,683 over five years, whereas the same investment in VIG would grow to $1,737 [5]. Portfolio Composition - VIG consists of 338 holdings with a significant tilt towards Technology (30%), Financial Services (21%), and Healthcare (15%) [6]. - The top holdings in VIG include Broadcom, Microsoft, and Apple, reflecting its focus on dividend growth [6]. - HDV is concentrated on 74 U.S. stocks with higher current yields, focusing on sectors like Consumer Defensive, Energy, and Healthcare [7]. - Major positions in HDV include Exxon Mobil, Johnson & Johnson, and Chevron, emphasizing its income-oriented strategy [7]. Investment Suitability - VIG is suited for investors seeking growth through dividend appreciation, despite its lower yield [11][13]. - HDV appeals to conservative investors prioritizing income and lower volatility due to its higher dividend yield and focus on defensive sectors [12][13].