iShares Core High Dividend ETF

HDV

Market cap $13.4B

The iShares Core High Dividend ETF offers defensive exposure with a 2.90% yield, focusing on quality, high-dividend companies with strong moats. HDV's portfolio is concentrated in consumer staples, energy, and healthcare, with minimal tech exposure, making it less likely to outperform in tech-driven rallies. Given rising inflation and geopolitical uncertainty, HDV is positioned to preserve capital and provide income stability, appealing to defensive and income-focused investors.

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Vanguard High Dividend Yield ETF offers a lower expense ratio but has a lower trailing-12-month dividend yield than iShares Core High Dividend ETF. iShares Core High Dividend ETF maintains a more concentrated portfolio of 74 holdings, while Vanguard High Dividend Yield ETF holds more than 600 securities.

Oil prices and inflation have moved significantly higher, creating an increased risk of economic slowdown later this year. Many portfolios still tilt heavily toward tech and growth stocks.

The Fidelity High Dividend ETF has delivered average annual returns of 13.3% since its launch in 2016. The iShares Core High Dividend ETF has delivered a slightly higher dividend yield with a lower expense ratio.

VYMI has outperformed HDV over the past one, three, five, and ten years. The Vanguard fund holds roughly 1,600 stocks while iShares concentrates on just 74 names.

iShares Core High Dividend ETF provides nearly double the dividend yield of Vanguard Dividend Appreciation ETF for a slightly higher expense ratio. Vanguard Dividend Appreciation ETF maintains a broader portfolio of stocks while iShares Core High Dividend ETF concentrates on fewer holdings.

The iShares Core High Dividend ETF (HDV) was launched on March 29, 2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.

The Schwab U.S. Dividend Equity ETF (SCHD) considers high yield, dividend growth, and dividend quality in its selection strategy. The iShares Core High Dividend ETF (HDV) targets high-yielders from a universe that passes a pair of Morningstar quality screens.

By investing in companies that generate durable free cash flow, investors can help dampen volatility, support total return and deliver sustainable income over the long term. Historically, dividends have been a meaningful contributor to equity returns, accounting for nearly 40% of the S&P 500's total return. Dividends can do more than provide a stream of income; investing in companies that generate free cash flow may help reduce volatility, drive total return and deliver sustainable income over the long term.