FDVV holds NVIDIA, Apple, and Microsoft at 16% of assets, fueling a 93% five-year return but trimming yield to just 2.8%.
SCHD charges 0.06% versus FDVV's 0.15%, a $90 annual gap on $100,000 that compounds significantly in taxable accounts or IRAs.
FDVV justifies its premium only for investors who specifically want megacap tech exposure inside a dividend wrapper; otherwise SCHD or VYM cost less.
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The Fidelity High Dividend ETF (NYSEARCA:FDVV) charges 0.15% a year and now manages $9.80 billion across 112 holdings. That fee sits above the category's cheapest options, so the question for income investors is whether Fidelity's tilt justifies the premium. This piece weighs FDVV against two of the funds it most often gets shopped against: the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and the Vanguard High Dividend Yield ETF (NYSEARCA:VYM).
A fourth option worth naming, the iShares Core Dividend Growth ETF (NYSEARCA:DGRO), rounds out the comparison for readers who care more about payout expansion than headline yield. The four funds sound similar in marketing copy. Under the hood, they are built to do different things.
A 0.15% expense ratio is modest in absolute terms, but it becomes a live question when the closest peer, SCHD, charges 0.06%. On a $100,000 balance, that gap runs about $90 a year, small in isolation but compounding for decades in a taxable account or IRA. The fee only justifies itself if FDVV's construction produces something SCHD's does not: a different sector mix, a different yield profile, or a different return pattern.
FDVV screens for companies that combine yield with dividend growth and payout consistency, then weights by market cap within those buckets. The result is a portfolio that looks less like a pure yield screen and more like a large-cap core fund with a dividend overlay.
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The clearest way to understand FDVV is to look at what sits on top. NVIDIA, Apple, and Microsoft together account for 16% of net assets, with Broadcom, JPMorgan Chase, and Alphabet close behind. Most dedicated dividend funds screen out those names because their yields are below 1%. Fidelity includes them by leaning on total shareholder return criteria and buyback intensity alongside dividends.
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