Core Insights - The Vanguard High Dividend Yield ETF (VYM) offers broader diversification and stronger recent returns compared to the iShares Core High Dividend ETF (HDV), which focuses on higher payouts and a more concentrated portfolio [2][9] - Both ETFs aim to provide stable income through high-dividend U.S. stocks, but VYM holds nearly 600 companies for wide diversification, while HDV concentrates on just 75 stocks [3][9] Cost & Size Comparison - VYM has a lower expense ratio of 0.06% compared to HDV's 0.08%, making it slightly more affordable [4][5] - As of November 22, 2025, VYM has a 1-year return of 5.74%, while HDV has a return of 2.06% [4] - HDV offers a higher dividend yield of 3.09% compared to VYM's 2.49% [4] Performance & Risk Analysis - Over the past five years, HDV experienced a maximum drawdown of -16.52%, while VYM had a drawdown of -15.87% [6] - An investment of $1,000 would have grown to $1,433 in HDV and $1,595 in VYM over the same period [6] Portfolio Composition - VYM contains 566 holdings with significant sector weights in financial services (21%), technology (14%), and industrials (13%), appealing to investors seeking diversification [7] - HDV, with only 75 stocks, is heavily weighted in consumer staples, energy, and healthcare, focusing on established high-yielding blue chips like Exxon Mobil and Johnson & Johnson [8] Summary of Investment Strategies - VYM is more diversified and has higher assets under management at $81.3 billion compared to HDV's $11.7 billion [4][9] - While HDV offers a higher dividend yield, VYM has delivered stronger recent total returns, making both ETFs viable options for income-focused investors [9][11]