VIG vs HDV

Portfolio characteristics

VIG’s $115.8B is the ETF-share figure on Vanguard’s fund page in early November. HDV’s holdings count is 74 on the Sep 30 fact sheet and 73 on iShares’ Nov 6 fund page; HDV’s P/E and P/B are shown at Nov 6 and VIG’s at Sep 30, so they are not matched. HDV’s turnover, market capitalization and return on equity were not captured, nor were VIG’s NAV, premium or discount and beta. iShares shows HDV’s premium or discount as 0.05 without a sign.

Top ten sums: VIG 34.5% · HDV 55.79%. Both lists are dated Sep 30, 2026. Two stocks appear in both top-ten lists. Weights change.

The sector mirror

Same funds, different lenses

Company size

VIG (Vanguard, Sep 30): median market capitalization $337.6B and about 99% in domestic stock. HDV (iShares): market-cap bands were not captured for this page. Both funds hold large, established U.S. companies almost entirely.

What you actually own

Average annual: Vanguard and iShares, Sep 30, 2026. “Since inception” starts in different years (VIG 2006, HDV 2011), so do not compare those two columns. After-tax returns for HDV use iShares’ highest historical federal rates; Vanguard’s fact sheet does not show them. Calendar years: VIG from Yahoo Finance, HDV from TotalRealReturns and iShares. Past performance does not guarantee future results.

Growth of a hypothetical $10,000 · NAV total return to Sep 30, 2026

Both funds derived from the issuers’ annualized NAV returns (compounded). Distributions reinvested, fund expenses deducted. Illustration, not a forecast.

Payouts per share, newest first

VIG pays quarterly: its four payouts through Sep 2026 total $3.646 per share against $3.549 for the prior four (+2.7%). HDV’s latest eight payouts, as published by iShares, are not evenly spaced (they include July and August 2026 payments) and vary from $0.056 to $0.251 per share, so a quarter-by-quarter growth comparison would mislead. Compare the yields above instead. All eight HDV payouts were income, with no capital gains or return of capital.

Rank by rank, the ten largest positions of each fund, both dated Sep 30. Top five: VIG 22.1%, HDV 34.2%. Top ten: VIG 34.5%, HDV 55.8%.

Both trade on NYSE Arca with tight spreads. A spread of 0.03% is about $30 between the buy and sell price on $100,000. Use limit orders for large trades and avoid the first and last minutes of the session. See creation, redemption and trading for how NAV, premiums and spreads arise.

Expense ratio is taken from fund assets, not billed. It excludes the bid/ask spread, any premium or discount to NAV, brokerage commissions and taxes. VIG’s ratio has been listed as low as 0.04% and as high as 0.06% in older Vanguard documents; the 0.04% figure is from the current prospectus. HDV’s 0.08% is from iShares.

Exact eligibility rules, caps and rebalance dates sit in each prospectus and index methodology; read them before relying on this summary.

HDV’s much higher yield comes from how the two indexes are built. HDV’s index keeps about 75 stocks chosen for high yield, a competitive-advantage screen and a financial-health screen, and weights its larger positions more heavily, which concentrates it in staples, energy and utilities that pay a lot. VIG requires ten straight years of dividend growth and drops the highest-yielding quarter of eligible stocks, which concentrates it in lower-yielding growers such as Microsoft, Apple and Broadcom.

The return pattern flips with the window. HDV led over 1 year (17.86% vs 9.77%) and 5 years (12.10% vs 10.72%), while VIG led over 3 years (16.51% vs 16.06%) and 10 years (12.86% vs 9.43%) and in each calendar year from 2023 to 2025. Sector tilt is the simplest explanation, not proof: leadership can reverse, and a higher yield is not a promise of higher total return. Read yield vs total return before choosing on yield alone.

Start with what separates them. Yield favors HDV by a wide margin: a 3.51% SEC yield against 1.60% at Sep 30, which on a $100,000 balance implies roughly $3,050 a year against $1,490 at the trailing yields before taxes, if yields held (they change, and the dates differ). Cost favors VIG by 0.04 points, or $4 a year on $10,000. Breadth and the long-run record favor VIG: 333 stocks against 73, and the better 3- and 10-year returns.

Then check what you already own. Only two top-ten stocks are shared and sector weights overlap by about 42%, so holding both does diversify by sector, but HDV adds a heavy energy and staples tilt. If you already hold a broad U.S. fund such as VOO or VTI, VIG largely repeats it while HDV adds a strong value tilt.

• Step 1 · Goal: dividend growth and a quality tilt (VIG) or the highest yield from a screened, concentrated list (HDV).
• Step 2 · Overlap: compare each fund with your existing index funds using the Diversification Calculator.
• Step 3 · Sectors: accept a technology-heavy mix (VIG) or a staples- and energy-heavy mix with almost no technology (HDV).
• Step 4 · Cost: VIG saves $4 a year per $10,000, which is small next to the yield gap.
• Step 5 · Account: consider how dividends are taxed in your account type.

Most investors would pick one rather than both. For other comparisons, VIG vs VYM and SCHD vs HDV show how each fund sits against other dividend funds. Size the position against your whole portfolio.

VIG and HDV are U.S.-listed and trade in U.S. dollars, so buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost on both entry and exit. Currency moves also change your return in Canadian dollars even if the funds are flat in U.S. dollars.

U.S. dividends paid to Canadian residents can be subject to U.S. withholding tax, generally 15% under the Canada-U.S. tax treaty. Registered accounts are treated differently: an RRSP is generally exempt from that withholding on U.S. dividends, while a TFSA is not. In a taxable account the withheld amount may be claimable through the foreign tax credit. Because HDV yields more, the withholding in dollar terms is larger on a given balance.

Canadians holding U.S.-listed assets above a modest threshold may also face U.S. estate tax exposure, which treaty relief can reduce. This is general education, not tax advice; confirm the rules for your situation with a cross-border tax professional.

Both funds invest in U.S. stocks. VIG pays quarterly and its turnover is low (8.2% in its latest fiscal year), which usually limits taxable distributions. HDV’s latest eight payouts were all income, with no capital gains or return of capital; its turnover was not captured. Capital gains history for VIG was not captured. U.S. taxpayers may see some dividends taxed at lower qualified rates if holding-period rules are met.

iShares’ after-tax return for HDV to Sep 30, 2026 was 16.97% over one year before selling shares and 11.14% after selling; Vanguard’s fact sheet does not show an equivalent for VIG. For Canadian account types and withholding tax, see the Canadian section above. Confirm the rules for your account with a tax professional, and read how to build an ETF portfolio.

Investors comparing VIG and HDV often also look at Schwab U.S. Dividend Equity (SCHD), Vanguard High Dividend Yield (VYM), iShares Core Dividend Growth (DGRO) and ProShares S&P 500 Dividend Aristocrats (NOBL). See SCHD vs VIG, SCHD vs HDV, VIG vs VYM and VIG vs DGRO. Broad funds such as VTI and VOO already hold many of the same companies, so check overlap before adding a dividend fund to a core portfolio. See every dividend fund side by side on the Dividend ETFs page.

Is VIG or HDV better?

Neither is better for everyone. HDV pays roughly double the yield (SEC 3.51% against 1.60% at Sep 30, 2026) and led over 1 and 5 years. VIG costs half as much (0.04% against 0.08%), requires ten straight years of dividend growth, holds 333 stocks against 73, and led over 3 and 10 years and in three of the last four calendar years. The right choice depends on whether you want income today or dividend growth and breadth.

Which pays the higher dividend yield, VIG or HDV?

HDV. Its 30-day SEC yield was 3.51% and its trailing yield 3.05% (both Sep 30, 2026). VIG’s SEC yield was 1.60% on Sep 30 and 1.43% on Oct 31, with a trailing yield of about 1.49%. Both funds’ SEC yields at Sep 30 are matched.

What are the expense ratios of VIG and HDV?

VIG’s expense ratio is 0.04% per Vanguard’s current prospectus, or $4 a year per $10,000. HDV’s is 0.08%, or $8 a year per $10,000.

How much do VIG and HDV overlap?

Two stocks appear in both top-ten lists: Exxon Mobil and AbbVie. By this page’s own sector arithmetic, the two funds overlap about 42% by sector weight. A fund-level weight overlap was not captured.

What index does each ETF track?

VIG tracks the S&P U.S. Dividend Growers Index. HDV tracks the Morningstar Dividend Yield Focus Index. Both are passive U.S. dividend funds listed on NYSE Arca; VIG pays quarterly and HDV’s payouts are irregular.

What are the top holdings of VIG and HDV?

VIG’s largest positions on Sep 30, 2026 were Microsoft (4.9%), Apple (4.9%), Broadcom (4.3%), Eli Lilly (4.1%) and JPMorgan Chase (3.9%). HDV’s largest on the same date were Exxon Mobil (9.28%), Chevron (7.00%), AbbVie (6.70%), Verizon (5.78%) and Procter & Gamble (5.40%).

Which has performed better, VIG or HDV?

It depends on the window. To Sep 30, 2026 HDV led over 1 year (17.86% vs 9.77%) and 5 years (12.10% vs 10.72%), and VIG led over 3 years (16.51% vs 16.06%) and 10 years (12.86% vs 9.43%), annualized on NAV. VIG led 2023, 2024 and 2025 and HDV led 2022. Past performance does not guarantee future results.

How do VIG and HDV differ by sector?

VIG (Sep 30, 2026) was 26.7% technology, 21.0% financials and 18.6% health care, with 3.6% in energy. HDV (Nov 6, 2026) was 26.7% consumer staples, 23.2% energy, 14.0% health care and 11.4% utilities, with 0.4% in technology.

Can I own both VIG and HDV?

You can. They share two top-ten stocks and overlap by only about 42% by sector weight, so owning both adds more diversification than most dividend pairs, but HDV adds a heavy energy and staples tilt. Check your combined overlap with a diversification calculator and size positions against your whole portfolio.

Which is less volatile, VIG or HDV?

VIG’s three-year standard deviation was 10.33% against 11.72% for HDV at Sep 30, 2026, while HDV’s beta was 0.29 and VIG’s was not captured. Drawdowns were reported for different periods: about 31.7% for VIG’s worst decline in a decade (BestETF) and 10.5% for HDV over three years (ETF Central), so do not compare those two figures.

Does HDV pay a dividend every quarter?

Not on a regular quarterly schedule in the latest eight payouts. iShares’ list shows payments that include July and August 2026 and amounts from $0.056 to $0.251 per share, all income. VIG pays quarterly.

Are VIG and HDV suitable for Canadian investors?

Both are U.S.-listed and trade in U.S. dollars, so Canadians face currency conversion costs and may face U.S. withholding tax on dividends. Treatment differs across TFSA, RRSP and taxable accounts. This is general education, not tax advice; confirm with a tax professional.

Third-party sources

ETF Central (HDV) · StockAnalysis (HDV) · TotalRealReturns (HDV) · Yahoo Finance (VIG) · BestETF.

Methodology and limits

• VIG figures come from Vanguard’s fact sheet and investment profile (Sep 30, 2026) and Vanguard’s fund page (Nov 5, 2026). HDV figures come from iShares’ fact sheet (Sep 30, 2026) and fund page (Nov 6, 2026).
• Top-ten holdings for both funds are dated Sep 30, 2026. VIG sector weights are Sep 30; HDV sector weights are Nov 6.
• Sector overlap of 42% is this page’s sum of the smaller sector weight in each fund. Fund-level weight overlap, daily-move correlation, VIG beta, HDV turnover and market-cap bands were not captured.
• Calendar-year returns for VIG (Yahoo Finance) and HDV (TotalRealReturns) come from two sources; VIG 2021 was not captured, so the table starts in 2022.
• Growth of $10,000 is derived from each issuer’s annualized NAV returns; dollar values are approximate.
• Drawdowns: VIG is BestETF’s 10-year worst decline; HDV is ETF Central’s three-year maximum drawdown. They cover different periods and are third party.
• Index rules summarize provider descriptions; confirm eligibility rules, caps and rebalance dates in each prospectus.

Pathways, not rankings or recommendations.