The iShares Core High Dividend ETF (HDV) was launched on 03/29/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
HDV's 3.45% dividend yield is underwhelming given the mediocre quality of its current portfolio holdings. Despite a recent market-wide pop, HDV offers no meaningful alpha and remains a 'dead money' situation in my view. Compared to SPY and even RSP, HDV consistently underperforms, only occasionally outpacing RSP when its own returns are weak.
iShares Core High Dividend ETF comprises 75 high-quality U.S. securities that pay above-average dividend yields and pass Morningstar's Economic Moat, Uncertainty, and Distance to Default screens. Its long-term track record is mixed, but the fund has a low portfolio beta and has demonstrated solid safety in market drawdowns. Consumer Staples exposure is now at 22%. I estimate the fund yields 3.48% at current prices. HDV also features decent mid-single-digit sales and earnings growth rates, something not offered by higher-yielding funds, including SCHD.
![]() HDV In 2 months Estimated | Other | $0.91 Per Share |
![]() HDV 2 weeks ago Paid | Other | $0.91 Per Share |
![]() HDV 3 months ago Paid | Quarterly | $0.8 Per Share |
![]() HDV 6 months ago Paid | Quarterly | $1.12 Per Share |
![]() HDV 9 months ago Paid | Quarterly | $1.23 Per Share |
![]() HDV 11 Jun 2024 Paid | Quarterly | $0.93 Per Share |
![]() HDV In 2 months Estimated | Other | $0.91 Per Share |
![]() HDV 2 weeks ago Paid | Other | $0.91 Per Share |
![]() HDV 3 months ago Paid | Quarterly | $0.8 Per Share |
![]() HDV 6 months ago Paid | Quarterly | $1.12 Per Share |
![]() HDV 9 months ago Paid | Quarterly | $1.23 Per Share |
![]() HDV 11 Jun 2024 Paid | Quarterly | $0.93 Per Share |
Asset Management Industry | Financial Services Sector | - CEO | XSGO Exchange | US46429B6636 ISIN |
US Country | - Employees | 16 Jun 2025 Last Dividend | - Last Split | - IPO Date |
This fund is designed for investors seeking to invest in income-paying securities, complemented by a strategy focused on company quality and financial health. The fund invests primarily in securities that are part of its underlying index, aiming to mirror its performance. The underlying index itself is selected based on comprehensive criteria developed by Morningstar, Inc., ensuring that only securities from financially healthy and high-quality companies are included. Despite its focus on income, the fund maintains a non-diversified status, meaning it may invest more heavily in fewer securities, potentially increasing risk and reward. This approach underscores the fund's objective to deliver income while also considering the longevity and robustness of its chosen investments through a meticulously curated index.
The core service of this fund revolves around investing in a variety of income-paying securities. These can include bonds, dividend-paying stocks, and other financial instruments that provide regular income. The fund targets these investments to produce a steady income stream for its investors, aligning with the goal of income generation alongside capital appreciation.
Adhering to an index-based investment strategy, the fund aims to replicate the performance of its underlying index, which is carefully constructed by Morningstar, Inc. This methodology ensures that only securities that pass a rigorous quality and financial health screening are included, optimizing the balance between risk and return. The fund’s strategy emphasizes the importance of economic characteristics that are substantially identical to the component securities of its underlying index, offering investors a focused and methodical approach to income investing.
While many funds spread their investments across a wide array of securities to dilute risk, this fund adopts a non-diversified approach. This means it may concentrate its investments in a smaller number of securities, allowing for potentially higher returns from those securities. However, this approach also carries a higher level of risk since the fund's performance is more closely tied to the fortunes of fewer investments. For investors, this structure highlights a balance between the pursuit of higher income and the acceptance of potentially greater volatility.