VUDH ETF: what the Vanguard U.S. High Dividend Yield Index ETF (CAD-Hedged) is

Short answer: VUDH is the CAD-hedged version of the Vanguard U.S. High Dividend Yield Index ETF, listed on the TSX at a 0.28% management fee. It holds the same U.S. high-dividend index as VUDV but hedges the U.S. dollar back to Canadian dollars, removing the currency swing for a small ongoing cost.

VUDH exists for one reason: to give you U.S. high-dividend exposure without the Canadian-dollar-versus-U.S.-dollar swing riding along with it. It is the hedged twin of VUDV, and the choice between them is the whole decision. This guide explains what hedging does for you here, what it costs, and who should pick VUDH over the unhedged version. This is not financial advice, and fund details change, so verify against Vanguard’s current disclosures before acting.

What VUDH actually is

The same broad U.S. high-dividend index fund as VUDV, holding a wide basket of U.S. companies with above-average yields, with one layer added on top: a currency hedge that converts the U.S. dollar exposure back to Canadian dollars.

What hedging actually does for you

VUDH vs VUDV: how to choose

The funds are identical except for the hedge, so this is purely a currency call:

• Pick VUDH (hedged) if a rising Canadian dollar eroding your U.S. returns would bother you, or you want your U.S. income to behave in clean Canadian-dollar terms.
• Pick VUDV (unhedged) if you are a long-term holder who would rather not pay the hedging cost and is comfortable with currency noise, which is the more common default for U.S. equity.

Owning both makes no sense, because they cancel into roughly the unhedged exposure at double the complexity. Choose one.

Frequently asked questions

What is the difference between VUDH and VUDV?

They hold the same U.S. high-dividend index and the same stocks. VUDH is hedged to Canadian dollars, so it removes the U.S. dollar swing from your returns for a small cost. VUDV is unhedged, so currency movements flow through. The choice is entirely about whether you want currency exposure.

Is VUDH a good ETF?

It is a low-fee, diversified way to own U.S. high-dividend stocks with the currency risk removed, at 0.28%. It is a good fit specifically for an investor who wants U.S. dividend income but not the loonie-versus-greenback swing. If you are indifferent to currency or prefer to avoid the hedging cost, the unhedged VUDV is the simpler pick.

Does hedging cost extra?

Hedging adds a small ongoing cost beyond the headline management fee, and it can work against you when the U.S. dollar rises, since you give up that currency gain. The 0.28% management fee is the headline, but the practical cost of the hedge shows up in tracking versus the unhedged version over time.

Is VUDH better than VUDV for an RRSP?

Account choice and the hedging decision are separate questions. The hedge is about currency, not tax. For where to hold a U.S. dividend fund, the U.S. withholding tax treatment matters more, and it depends on the account and the fund’s structure. Decide the currency question on its own merits, then think about account placement separately.

The honest verdict

Bottom line

VUDH is the right pick only if you specifically want the U.S. dollar swing taken out of your dividend exposure, and you accept the small cost of doing that. Otherwise the unhedged VUDV is simpler and cheaper to run. Decide the currency question once and commit. Whichever you hold, Greenline shows your real U.S. exposure and income across accounts so the hedging choice is a deliberate one, not an accident.