Which High-Yield ETF Is a Better Buy in 2026: Vanguard VYM vs iShares HDV?
VYM offers broader diversification with lower costs, while HDV is a more concentrated ETF with a heavy weightage on defensive stocks.
Overview
Both the Vanguard High Dividend Yield ETF (NYSEMKT:VYM) and the iShares Core High Dividend ETF (NYSEMKT:HDV)serve as core options for investors seeking income from U.S. dividend-paying stocks.
The Vanguard High Dividend Yield ETF offers broader market diversification and a lower expense ratio, whereas the iShares Core High Dividend ETF provides a more concentrated portfolio with a higher trailing distribution yield.
Details
So while both ETFs share the primary goal of providing higher-than-average yields, they differ significantly in portfolio breadth, sector concentration, and cost structures, making each suitable for different types of dividend-focused strategies.
Source
Originally published at www.fool.com.