Higher Yield vs. Lower Cost: The Critical Differences Between HDV and VIG

The article compares two dividend-focused ETFs: Vanguard Dividend Appreciation ETF (VIG) and iShares Core High Dividend ETF (HDV). VIG emphasizes dividend growers with a lower 0.04% expense ratio and 1.5% yield, while HDV targets high-yielding stocks with a 3.1% yield but higher 0.08% expense ratio. HDV delivered superior 1-year returns of 34.6% versus VIG's 16.2%, though VIG offers greater diversification with 333 holdings versus HDV's 74.