HDV tracks the Morningstar Dividend Yield Focus Index, which holds about 75 US companies chosen for high dividend yield, a strong economic moat and sound financial health, weighted by dividends. The portfolio has large weights in energy, healthcare, consumer staples and utilities, and a smaller weight in technology. It is more concentrated than most dividend funds, and its largest holdings account for a significant share of assets. Results depend heavily on the performance of a few large energy and healthcare companies.
