SCHD Offers a Higher Yield While FDVV Grows Faster

Core Insights - The article compares two popular dividend ETFs, Fidelity High Dividend ETF (FDVV) and Schwab U.S. Dividend Equity ETF (SCHD), highlighting their differences in cost, yield, performance, and sector focus, which are crucial for income-focused investors [1][2]. Cost and Size - FDVV has an expense ratio of 0.15%, while SCHD has a lower expense ratio of 0.06%, making SCHD more affordable [3][4]. - As of December 16, 2025, FDVV delivered a 1-year return of 10.3%, whereas SCHD experienced a decline of 1.4% [3]. - The dividend yield for FDVV is 3.0%, compared to SCHD's higher yield of 3.7% [3][4]. - SCHD has over $73 billion in assets under management, making it the second-largest ETF focused on dividend-paying stocks, significantly larger than FDVV [8]. Performance and Risk Comparison - Over a 5-year period, FDVV had a maximum drawdown of 20.2%, while SCHD's was lower at 16.8% [5]. - An investment of $1,000 in FDVV would grow to $1,757 over 5 years, compared to $1,285 for SCHD [5]. Portfolio Composition - SCHD holds around 100 stocks, with significant allocations in energy (19%), consumer staples (19%), and healthcare (16%), focusing on companies with strong dividend histories [6]. - FDVV invests in approximately 120 stocks, with a notable tilt towards technology (26%) and financial services (22%), indicating a growth-oriented strategy [7]. Investment Strategy - SCHD tracks the Dow Jones U.S. Dividend 100 Index, emphasizing quality and consistency in dividend payers [2][9]. - FDVV targets higher-yielding stocks with a focus on growth potential, particularly in the technology sector [10].