VYM, DVY, and HDV are three of the oldest and most established high-yield ETFs in the US market. Together they represent three different philosophies for extracting dividend income from US equities: broad and diversified (VYM), concentrated and high-yield (DVY), and financially screened with energy tilt (HDV). In 2026, all three trade near their 52-week highs and remain core positions in thousands of retirement portfolios.
The One-Paragraph Summary
DVY wins on yield at ~3.7%, but concentrates in 100 stocks with heavy utilities exposure. VYM wins on diversification with 440+ holdings and a 2.8% yield — the widest net of the three. HDV splits the difference at ~3.4% yield with 75 carefully screened stocks, heavy in energy (Exxon, Chevron) and telecom (Verizon, AT&T). All three pay qualified dividends, making them suitable for taxable accounts. The income gap at $100K: DVY $3,700/yr, HDV $3,400/yr, VYM $2,800/yr.
Side-by-Side Comparison (2026)
| Metric | VYM | DVY | HDV |
|---|---|---|---|
| Full name | Vanguard High Dividend Yield | iShares Select Dividend | iShares Core High Dividend |
| Issuer | Vanguard | BlackRock (iShares) | BlackRock (iShares) |
| Inception | Nov 2006 | Nov 2003 | Mar 2011 |
| Holdings | ~440 | ~100 | ~75 |
| Expense ratio | 0.06% | 0.38% | 0.08% |
| 12-month yield | ~2.8% | ~3.7% | ~3.4% |
| Dividend frequency | Quarterly | Quarterly | Quarterly |
| Distribution type | Qualified dividends | Qualified dividends | Qualified dividends |
| Top sector | Financials / Health Care | Utilities (25%+) | Energy / Telecom |
| AUM (approx.) | ~$55B | ~$18B | ~$10B |
| 10-yr div growth (CAGR) | ~7% | ~5% | ~6% |
Income Math at $100K
| Metric | VYM | DVY | HDV |
|---|---|---|---|
| Annual income at $100K | $2,800/yr | $3,700/yr | $3,400/yr |
| After-tax (15% rate) | ~$2,380 | ~$3,145 | ~$2,890 |
| Expense ratio drag | $60/yr | $380/yr | $80/yr |
| Net after fees + tax | ~$2,320/yr | ~$2,765/yr | ~$2,810/yr |
Note: DVY's headline yield advantage nearly evaporates once you account for its 0.38% expense ratio — nearly 6× higher than VYM's 0.06%. After fees and taxes, DVY ($2,765/yr net) barely beats VYM ($2,320/yr net). HDV ($2,810/yr net) actually edges out DVY after all costs are counted.
VYM Deep Dive
VYM tracks the FTSE High Dividend Yield Index, which screens the US large-cap universe for stocks forecast to pay above-average dividends in the coming 12 months, then weights them by market cap. The result: a very broad, diverse portfolio of 440+ names. No single stock exceeds ~4% of assets. No sector exceeds ~22%.
VYM's diversification is its defining advantage. Financials, healthcare, consumer staples, industrials, and energy are all meaningfully represented. Tech is underweighted (low dividends), but VYM doesn't avoid it entirely. The broad exposure means VYM never looks dramatically different from the overall dividend-paying market.
The trade-off: 440 holdings dilutes your yield toward the average of all dividend payers. You get a lower yield than DVY or HDV because you own a lot of moderate-yield stocks alongside the high-yielders. VYM's 0.06% expense ratio is the lowest of the three — so you keep more of what you earn.
DVY Deep Dive
DVY tracks the Dow Jones U.S. Select Dividend Index — 100 US stocks ranked primarily on dividend yield, with screens for dividend payout consistency and payout ratio. The methodology selects the highest yielders with sustainable payouts, which historically means heavy utilities exposure. Utilities are the one sector where 4–6% dividend yields are the norm rather than the exception, and DVY's methodology naturally gravitates there.
DVY typically holds 25–30% in utilities — names like Duke Energy, Dominion Resources, and Southern Company. Utilities are highly interest-rate-sensitive: when rates rise (as in 2022–2023), utility stocks fall harder than the market, dragging DVY with them. This is DVY's key risk: sector concentration in one of the most interest-rate-sensitive industries.
The trade-off: DVY's highest headline yield (3.7%) comes with the highest expense ratio (0.38%) and the most sector concentration. After fees, DVY's real advantage is smaller than it appears. For investors who want utility income specifically, DVY is a reasonable choice. For general high-yield exposure, HDV or VYM offer better all-in economics.
HDV Deep Dive
HDV tracks the Morningstar Dividend Yield Focus Index, which screens for Morningstar "economic moat" ratings and minimum financial health scores before selecting the 75 highest-yielding stocks. Energy, telecom, and healthcare dominate HDV's portfolio. As of 2026, Exxon Mobil and Chevron together represent 20%+ of the ETF — meaningful concentration in oil majors.
HDV's financial health screen is its differentiator. The Morningstar moat requirement means HDV avoids companies with weak competitive positions, even if they have high yields. The idea: dividend sustainability matters more than headline yield. In practice, this means HDV has held up better than DVY in periods when yield-trap stocks see dividend cuts — because the screen catches some of the worst offenders before they enter the portfolio.
The trade-off: 75 stocks is the most concentrated of the three ETFs. Energy and telecom together represent ~35–40% of assets. If oil prices collapse or major carriers cut distributions, HDV feels it hard. The 0.08% expense ratio is modest and competitive with VYM.
Sector Comparison
| Sector | VYM (approx.) | DVY (approx.) | HDV (approx.) |
|---|---|---|---|
| Financials | ~22% | ~15% | ~10% |
| Health Care | ~18% | ~5% | ~15% |
| Utilities | ~8% | ~27% | ~5% |
| Energy | ~8% | ~8% | ~25% |
| Consumer Staples | ~12% | ~8% | ~15% |
| Technology | ~8% | ~3% | ~5% |
| Telecom/Comm. | ~5% | ~8% | ~15% |
Which ETF Is Right for You?
Pick VYM if:
- You want broad dividend exposure with the lowest fee (0.06%)
- You want 440+ holdings so no single company or sector dominates
- You're OK with a 2.8% yield in exchange for diversification
- You plan to hold in a taxable account and want to minimize costs
Pick DVY if:
- You want the highest headline yield (3.7%) and can tolerate utilities concentration
- You believe interest rates will fall (good for utilities) or are neutral on rates
- You're in a tax-advantaged account where the 0.38% expense ratio is the main concern
Pick HDV if:
- You want 3.4% yield with a financial health screen (Morningstar moat)
- You want energy exposure as part of your income strategy
- You want a middle ground between DVY's concentration and VYM's dilution
- The 0.08% expense ratio is acceptable (competitive)
Tax Treatment
All three ETFs pay primarily qualified dividends — taxed at the preferential 0%, 15%, or 20% long-term capital gains rates rather than ordinary income rates. This makes VYM, DVY, and HDV all tax-efficient choices for taxable brokerage accounts, unlike covered-call ETFs such as JEPI or SPYI, whose distributions are largely ordinary income.
Common Questions
Which ETF has performed best over 10 years?
VYM has generally delivered the strongest 10-year total return of the three — its broader diversification and Vanguard's low-cost structure have compounded advantages over time. DVY has lagged due to its utilities concentration and higher expense ratio. HDV has been competitive with VYM on total return, with more volatility from its energy exposure.
Is DVY a good buy when interest rates are rising?
Generally no. DVY's 25%+ utilities weight makes it sensitive to rising rates. Utility stocks are often compared to bonds (stable income, low growth), and when bond yields rise, utility stocks become less attractive on a relative basis. In rate-rising environments of 2022–2023, DVY underperformed VYM and HDV significantly. DVY performs better when rates are falling or flat.
How does VYM compare to SCHD?
SCHD has outperformed VYM on total return, dividend growth (11% vs 7% CAGR), and safety score over the past decade. The trade-off: SCHD holds 100 stocks vs VYM's 440+. Both charge 0.06%. SCHD is generally the stronger choice for dividend-growth investors; VYM is the better choice for investors who prioritize breadth of exposure over growth rate. See the full comparison at /compare/schd-vs-vym.
Go deeper
- VYM dividend safety score — payout analysis, yield trend, and how VYM ranks in our universe.
- DVY dividend safety score — utilities concentration risk, yield sustainability, and safety rating.
- HDV dividend safety score — energy exposure analysis, Morningstar moat screen, and safety rating.
- SCHD vs VYM head-to-head — if you're choosing between a quality-growth screen and broad high-yield exposure.
This article is for informational purposes only and does not constitute investment advice. ETF yields, distributions, and performance figures are subject to change. Consult a qualified financial advisor before making investment decisions.