Higher Yield or Broader Dividend Diversification? VYM vs. HDV

Vanguard High Dividend Yield ETF (VYM) and iShares Core High Dividend ETF (HDV) offer different approaches to dividend investing. VYM provides broader diversification across 600+ holdings with a lower 0.04% expense ratio and stronger 1-year returns (26.50%), while HDV offers higher current yield (2.88%) with a concentrated portfolio of 74 holdings focused on energy and healthcare sectors. The choice depends on whether investors prioritize diversification or immediate income.