SCHD Offers a Higher Yield While FDVV Grows Faster

Fidelity High Dividend ETF ( FDVV +0.41%) and Schwab U.S. Dividend Equity ETF ( SCHD 0.07%) differ on cost, yield, recent performance, and sector focus, which could influence their appeal to income-oriented investors. Both funds aim to deliver attractive dividend income from U.S. stocks, but they take different routes. FDVV tilts toward higher-yielding stocks with a notable technology allocation, while SCHD tracks the Dow Jones U.S. Dividend 100 Index , emphasizing quality and consistency in its dividend payers. This comparison spotlights key differences in cost, performance, risk, and portfolio construction. Snapshot (cost & size) Metric FDVV SCHD Issuer Fidelity Schwab Expense ratio 0.15% 0.06% 1-yr return (as of Dec. 16, 2025) 10.3% (1.4%) Dividend yield 3.0% 3.7% Beta 0.82 0.68 Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months. SCHD is more affordable, charging less than half FDVV’s expense ratio, and it currently delivers a higher dividend yield, which may appeal to investors seeking to generate more income from every dollar invested. Performance & risk comparison Metric FDVV SCHD Max drawdown (5 y) (20.2%) (16.8%) Growth of $1,000 over 5 years $1,757 $1,285 What's inside SCHD, formed in October 2011, holds around 100 stocks. Its portfolio is concentrated in energy (19%), consumer staples (19%), and healthcare (16%), with the largest positions in Merck ( MRK +0.40%), Cisco Systems ( CSCO +1.85%), and Amgen ( AMGN +0.90%). The fund targets companies with strong dividend histories, which can aid in their resilience during downturns. FDVV, by contrast, invests in around 120 stocks with sector weights favoring technology (26%), financial services (22%), and consumer staples (12%). Its top holdings are Nvidia ( NVDA +3.80%), Microsoft ( MSFT +0.22%), and Apple ( AAPL +0.17%), giving it a growth tilt relative to SCHD. Neither fund carries any unusual structural quirks or tracking overlays that would complicate long-term holding. For more guidance on ETF investing, check out the full guide at this link . What this means for investors SCHD is one of the biggest and most popular dividend-focused ETFs. With over $73 billion in assets under management (AUM), it's the second-largest ETF focused specifically on dividend-paying stocks, and nearly 10 times bigger than FDVV. The fund has a very simple investment strategy, tracking the Dow Jones U.S. Dividend 100 Index. That index screens companies based on several dividend quality characteristics, including yield and five-year dividend growth rate. It's a low-cost way to add high-quality, high-yielding dividend growth stocks to your portfolio. FDVV, on the other hand, focuses more on companies that should be able to grow their dividends. It sacrifices some yield for more growth potential. As a result, the fund has delivered a higher total return in more recent years, due to its higher allocation to faster-growing technology companies. Given these differences, investors seeking a lower risk, more income-focused fund should gravitate towards SCHD. Meanwhile, more growth-oriented investors should consider FDVV. Glossary Expense ratio: The annual...

Preview: ~500 words