HDV's focus on energy, healthcare, and staples has driven an 8.56-point performance lead over VYM year-to-date, though investors should weigh HDV's higher concentration risk and expense ratio against VYM's broader diversification.
The iShares Core High Dividend ETF (HDV) has significantly outpaced the Vanguard High Dividend Yield ETF (VYM) in 2026, delivering a 23.85% return compared to VYM's 15.29%. HDV's concentrated portfolio of 75 high-quality, defensive stocks currently offers a 3.34% yield, outstripping VYM's 2.20% yield and broader, 500-stock market exposure.
HDV's performance is driven by its concentrated 75-stock portfolio, which prioritizes companies with strong economic moats and financial health, specifically within the energy, healthcare, and consumer staples sectors that have led the market this year.
If you are in a tax-advantaged account, a swap is straightforward. In taxable accounts, investors should be cautious of triggering capital gains and may prefer to redirect new contributions to HDV instead of selling existing VYM shares.