FDVV vs. HDV: 2 High-Dividend ETFs With Opposite Ideas About Big Tech

Core Viewpoint - The Fidelity High Dividend ETF (FDVV) and the iShares Core High Dividend ETF (HDV) differ significantly in sector allocation and recent performance, with FDVV offering higher returns and more technology exposure despite a slightly higher fee structure [1]. Cost & Size Comparison - HDV has an expense ratio of 0.08%, while FDVV charges 0.15% - As of March 11, 2026, HDV's one-year return is 17.6%, compared to FDVV's 19.31% - HDV has a dividend yield of 2.9%, while FDVV's yield is 2.8% - HDV has a beta of 0.42, indicating lower volatility compared to FDVV's beta of 0.80 - HDV's assets under management (AUM) stand at $13.8 billion, while FDVV has $8.9 billion [2]. Performance & Risk Comparison - Over five years, HDV's maximum drawdown is -15.41%, while FDVV's is -20.17% - An investment of $1,000 would grow to $1,423 in HDV and $1,603 in FDVV over the same period, indicating FDVV's superior total return but higher volatility [4]. Portfolio Composition - FDVV's portfolio is heavily tilted towards technology (25%), financial services (17%), and consumer cyclical stocks (16%), with top holdings including Nvidia, Apple, and Microsoft, which together account for over 16% of its assets [5]. - In contrast, HDV focuses on a more defensive strategy, with significant allocations to consumer defensive (28%), energy (26%), and healthcare (17%) sectors, featuring major holdings like Exxon Mobil, Chevron, and Johnson & Johnson [6]. Investment Implications - High-dividend ETFs are often associated with traditional sectors like utilities and pharmaceuticals, but FDVV incorporates a forward-looking approach that emphasizes expected dividend growth, allowing for the inclusion of tech companies like Nvidia and Microsoft [7]. - HDV employs a stricter selection process, focusing on the highest-yielding U.S. stocks that meet specific financial health criteria, excluding tech giants that do not provide consistent payouts [8].