Which Is the Better Dividend ETF, Fidelity's FDVV or Vanguard's VIG?

Robert Izquierdo, The Motley Fool

Wed, April 29, 2026 astatine 9:50 AM CDT 4 min read

The Fidelity High Dividend ETF (NYSEMKT:FDVV) seeks higher existent income done a leaner portfolio, portion the Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) prioritizes accordant dividend maturation and debased absorption costs.

Investors often look a prime betwixt maximizing existent income and prioritizing semipermanent dividend durability. This examination examines however a strategy focused connected maximizing existent output via assemblage tilts interacts with a much blimpish attack that prioritizes companies with a decennary oregon much of accordant payout increases. Investors whitethorn take 1 implicit the different based connected their contiguous income needs oregon semipermanent maturation objectives.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Vanguard money is much affordable with an disbursal ratio of 0.04%, importantly little than the 0.15% charged by the Fidelity fund. However, investors seeking a higher payout whitethorn similar the Fidelity fund, which offers a 2.80% output compared to the 1.50% output of the Vanguard fund. This quality successful output reflects their contrasting banal enactment criteria.

Performance & hazard examination

What's wrong

The Fidelity High Dividend ETF (FDVV) manages a portfolio of 119 stocks, applying a methodology that seeks higher comparative dividend yields done circumstantial assemblage tilts. Its creation is heavy weighted toward growth-oriented sectors, including exertion astatine 26%, fiscal services astatine 18%, and user cyclical astatine 15%. Its largest positions see Nvidia (NASDAQ:NVDA) astatine 6.73%, Apple (NASDAQ:AAPL) astatine 5.35%, and Microsoft (NASDAQ:MSFT) astatine 4.41%. Launched successful 2016, it has a trailing-12-month dividend of $1.66 per share.

By contrast, the Vanguard Dividend Appreciation ETF (VIG) tracks the S&P U.S. Dividend Growers Index, holding 338 stocks that person accrued their dividends for astatine slightest 10 consecutive years. Its assemblage vulnerability is much balanced crossed exertion astatine 23%, fiscal services astatine 20%, and healthcare astatine 18%. Its largest positions see Broadcom (NASDAQ:AVGO) astatine 4.04%, Apple astatine 4%, and Microsoft astatine 3.78%. Launched successful 2006, it has a trailing-12-month dividend of $3.45 per share.