■ ETF · August 16, 2026
SCHD vs. FDVV: Comparing Two Dividend ETFs
Schwab's SCHD offers lower costs and higher yield with defensive sectors, while Fidelity's FDVV leans into tech for growth. Here's how they stack up.
Overview
The Schwab U.S. Dividend Equity ETF (SCHD) and the Fidelity High Dividend ETF (FDVV) both target dividend-paying stocks but employ different strategies. SCHD tracks a disciplined index of high-quality companies with a focus on defensive stability, while FDVV uses a more aggressive approach with sector tilts toward technology and financial services.
Key Differences
SCHD has an expense ratio of 0.06%, significantly lower than FDVV's 0.15%. SCHD also offers a higher trailing-12-month dividend yield of 3.04% versus FDVV's 2.69%. SCHD's portfolio is weighted toward healthcare (21%), consumer defensive (20%), and energy (15%), with top holdings including Abbott Laboratories (4.78%), Amgen (4.63%), and Merck (4.42%). In contrast, FDVV holds 119 stocks with heavy concentrations in technology (29%), financial services (19%), and consumer cyclical (13%), and its top holdings are Nvidia (7.18%), Apple (5.94%), and Microsoft (5.09%).
SCHD was launched in 2011 and has paid $1.05 per share over the trailing 12 months, which on its recent share price of about $34.43 works out to a 3.1% yield. FDVV, launched in 2016, has paid $1.73 per share over the trailing 12 months, which on its recent share price of about $64.33 works out to a 2.7% yield.
FDVV's tech tilt has historically delivered stronger five-year returns, but over the past 12 months, SCHD's defensive positioning has outperformed as markets rotated toward traditional dividend stocks.
Performance and Volatility
FDVV has a higher beta, indicating greater volatility relative to the S&P 500, while SCHD is designed for lower volatility. This makes SCHD more suitable for income-focused investors seeking stability, whereas FDVV may appeal to those willing to accept more risk for potential growth.
What it means for income investors
For investors prioritizing lower costs and higher current income with a defensive tilt, SCHD appears to be the more compelling option. FDVV offers a different blend, with more growth potential but also higher fees and volatility. The choice depends on individual preferences for risk and return.
Reporting based on: fool.com. Figures verified against market data where available.