VUDV ETF: what the Vanguard U.S. High Dividend Yield Index ETF is, and VUDV vs VUDH

Short answer: VUDV is the Vanguard U.S. High Dividend Yield Index ETF, listed on the TSX in CAD and unhedged, at a 0.28% management fee. It tracks the FTSE High Dividend Yield Index, holding 560-plus U.S. companies with above-average yields. Its twin, VUDH, is the same fund hedged to Canadian dollars.

VUDV gives Canadian investors broad U.S. high-dividend exposure in one ticker, and it comes in two versions that differ only on currency. This guide covers what VUDV holds, where the dividends get taxed, and the one real decision: whether to take the unhedged VUDV or the CAD-hedged VUDH. This is not financial advice, and fund details change, so verify against Vanguard’s current disclosures before acting.

What VUDV actually is

A broad, passive U.S. dividend index fund wrapped for Canadian accounts. It tracks the FTSE High Dividend Yield Index, which screens U.S. companies for above-average dividend yields and holds a wide basket of them, more than 560 names, rather than concentrating in a handful.

VUDV vs VUDH: the only real decision

The currency hedging guide walks through the trade-off in full. The short version: if you do not want to think about the loonie, unhedged VUDV is the simpler default for long-term holders; if a rising Canadian dollar eroding your U.S. returns would bother you, VUDH removes that risk.

Where to hold it

U.S. dividends carry a 15% U.S. withholding tax, and the treatment depends on the account. In an RRSP, U.S.-listed dividends are generally exempt under the Canada-U.S. treaty, but VUDV is a Canadian-listed ETF holding U.S. stocks, which changes the mechanics, so the exemption does not apply the same way. In a TFSA, the withholding tax applies and is not recoverable. For a high-dividend fund specifically, the account you choose has a real effect on your after-tax yield, so it is worth getting right. Check with a tax professional for your situation.

Frequently asked questions

What is the difference between VUDV and VUDH?

They track the same U.S. high-dividend index and hold the same stocks. The only difference is currency: VUDV is unhedged, so U.S. dollar movements affect your returns, while VUDH is hedged to Canadian dollars, which removes that currency swing for a small ongoing cost. Choose one based on whether you want currency exposure or not.

Is VUDV a good ETF?

It is a low-fee, broadly diversified way to own U.S. high-dividend stocks, at 0.28% across 560-plus names. It suits an investor who specifically wants a U.S. income tilt. It is not a complete portfolio on its own, and a high-dividend tilt is a choice, not a default, so size it against your other U.S. holdings.

Should I hedge with VUDH or stay unhedged with VUDV?

There is no universally right answer. Hedging removes the currency swing but adds a small cost and can work against you when the Canadian dollar falls. Many long-term investors leave U.S. equity unhedged for simplicity. If currency volatility would unsettle you, the hedged VUDH is the calmer ride.

What is VUDV’s yield?

VUDV targets above-average U.S. dividend yields by tracking the FTSE High Dividend Yield Index. Because the fund is new and yield moves with the market, use Vanguard’s current factsheet for the live distribution yield rather than a fixed figure.

The honest verdict

Bottom line

VUDV is a sensible, low-cost U.S. high-dividend holding, and the only real fork is whether you take it unhedged here or hedged through VUDH. Decide the currency question once and pick a lane. Whichever you hold, Greenline shows your true U.S. exposure and income across every account, so a dividend tilt does not hide how concentrated you really are.