HDV is a valuable non-tech, high-dividend diversifier for growth portfolios and remains among the speaker's most important investments: it returned 24% versus 11% for the S&P 500, yields over 3%, charges 0.08% and has only about 1% in technology. But heavy Exxon and Chevron energy exposure makes it vulnerable if oil prices fall significantly, and with its top 10 holdings at 55% it is more concentrated than expected and not a substitute for full diversification.

Now , let's move on to the second exchange-traded fund (ETF) that I would like to highlight , which is the HDV or iShares Core High Dividend ETF. Although the names HDV and SCHD may sound similar, they actually differ in some important aspects.

Both funds focus on dividend- paying US companies , feature relatively low expense ratios, and offer investment opportunities outside the technology sector that dominates many major market indices.

However, the HDV fund pays more attention to companies with high dividend yields that meet specific financial criteria. The fund tracks the Morningstar Dividend Yield Focus Index, producing a different investment portfolio composition.

Here's a look at HDV's performance over the year. Another old-school dividend exchange-traded fund (ETF) that outperforms the tech-heavy S&P 500, with HDV delivering a 24% return compared to 11% for the S&P 500.

Like SCHD, this fund also boasts a low cost with an expense ratio of just 0.08%. From an earnings perspective, you get a return of over 3%, but the fund lacks the earnings growth we saw with SCHD.

Now, let's delve into the details of the sectors, where this fund is more conservative than SCHD. Key sectors include basic consumer goods, energy, healthcare and utilities. Here are the four best-performing sectors over the past month.

The technology sector represents only about 1% of this exchange-traded fund.

Now, let's take a look at the portfolio's largest investments, which include Exxon Mobil, Chevron, AbbVie, Verizon, Procter & Gamble, Philip Morris, Home Depot, Coca-Cola, PepsiCo, and the Altria Group.

The top 10 investments make up 55% of the fund’s total, which includes approximately 80 investments.

So, while technology stocks suffered , funds like HDV and SCHD benefited from diversifying their investments into other sectors of the market, and that is precisely what makes me think they are a valuable addition to development-oriented investment portfolios.

However, I would like to emphasize one important point: HDV is not a risk-free defensive investment. In fact, one of the most important things for investors to understand about it is its focus on the energy sector, with Exxon and Chevron topping the list of investments, as they alone represent a large part of this fund.

Energy stocks have performed exceptionally well recently , but they can be volatile. If oil prices fall significantly, energy companies' profits and stock prices could come under pressure.

This means that the HDV fund may experience weakness even as some of its traditional defensive investments remain stable.

Here's another important point: because the HDV fund has fewer investments and some relatively large individual positions, it may be more concentrated than investors might initially expect.

So, when reviewing the list of the top 10 stocks we have presented, make sure that it suits you. Therefore, I do not consider the HDV fund to be a substitute for a fully diversified investment portfolio , but I do believe it offers a different kind of exposure compared to many growth-oriented funds. That's what makes it interesting to me.

While the HDV fund focuses more on companies with high dividend yields and strong balance sheets. Because they use different indicators and selection methodologies, their investment portfolios are not identical.

While the HDV fund has a particularly large stake in the energy, commodities, healthcare, and utilities sectors.

Therefore, there is an overlap between them. Both funds own companies such as Chevron, Procter & Gamble, and Verizon. Therefore, owning both does not double the diversification of your portfolio.

This is something I want investors to understand.

An HDV box will give you a higher return and a higher level of security. Therefore, when I combine these investments, i.e., these two funds with my large investments in the technology sector, ETFs, and individual stocks, I believe that creates a more balanced portfolio.

The technology sector remains my biggest investment. However, this achieves more balance.

For this reason in particular, SCHD and HDV stocks remain among my most important investments.