HDV vs VYM: Which ETF Is Better in 2026?
A metric-by-metric comparison of iShares Core High Dividend ETF (HDV) and Vanguard High Dividend Yield Index Fund ETF Shares (VYM) — both Dividend Income funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 5, 2026. ~5 minute read.
The Verdict
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VYM scores higher: 79.3 (Grade B+) versus 78.0 for HDV. That doesn't make HDV a bad fund; it means VYM currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| HDV | VYM | |
|---|---|---|
| Category | Dividend Income | Dividend Income |
| Expense ratio | 0.08% | 0.04% |
| Fund size (AUM) | $13.4B | $96.1B |
| Dividend yield | 2.91% | 2.21% |
| 1-year return | +22.03% | +21.47% |
| 3-year return | +55.69% | +64.27% |
| Volatility | 10.23% | 10.31% |
| Max drawdown | -10.49% | -14.46% |
| Sharpe ratio | 1.66 | 1.60 |
| ETFValuer score | 78.0 | 79.3 |
| Grade | B+ | B+ |
| Rank (of ~150) | #15 | #10 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
VYM is the cheaper fund, charging 0.04% a year versus 0.08% for HDV — a gap of 0.04 percentage points (about $4.00/year on a $10,000 position) that compounds meaningfully over a multi-decade holding period. See the Fee Drag Calculator for the exact dollar impact at your investment size and horizon.
Performance & Risk
Over the trailing 3 years, VYM returned +64.27% versus +55.69% for HDV — a gap of about 8.6 percentage points. On risk, HDV has held up better historically, with a shallower max drawdown (-10.49% vs. -14.46%). HDV currently has the better risk-adjusted return (Sharpe ratio of 1.66 vs. 1.60), meaning it delivered more return per unit of volatility taken on.
Frequently Asked Questions
Is HDV or VYM better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VYM scores higher: 79.3 (Grade B+) versus 78.0 for HDV. That doesn't make HDV a bad fund; it means VYM currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, HDV or VYM?
VYM currently has the lower expense ratio (0.04% vs. 0.08%).
Can I hold both HDV and VYM?
Since HDV and VYM are both Dividend Income funds, they likely hold significant overlapping positions — owning both usually adds cost and complexity without meaningfully improving diversification. Pick one rather than holding both at full weight.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.