SCHD Offers a Higher Yield While FDVV Grows Faster
Key Points
SCHD offers a significantly lower expense ratio and a higher dividend yield than FDVV
FDVV has delivered stronger one-year total returns, but SCHD experienced a shallower 5-year drawdown
Sector allocations differ: FDVV leans into technology, while SCHD focuses more on energy, consumer staples, and healthcare
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Fidelity High Dividend ETF (NYSEMKT:FDVV) and Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) differ on cost, yield, recent performance, and sector focus, which could influence their appeal to income-oriented investors.
Both funds aim to deliver attractive dividend income from U.S. stocks, but they take different routes. FDVV tilts toward higher-yielding stocks with a notable technology allocation, while SCHD tracks the Dow Jones U.S. Dividend 100 Index, emphasizing quality and consistency in its dividend payers. This comparison spotlights key differences in cost, performance, risk, and portfolio construction.
Snapshot (cost & size)
| Metric | FDVV | SCHD |
|---|---|---|
| Issuer | Fidelity | Schwab |
| Expense ratio | 0.15% | 0.06% |
| 1-yr return (as of Dec. 16, 2025) | 10.3% | (1.4%) |
| Dividend yield | 3.0% | 3.7% |
| Beta | 0.82 | 0.68 |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
SCHD is more affordable, charging less than half FDVV’s expense ratio, and it currently delivers a higher dividend yield, which may appeal to investors seeking to generate more income from every dollar invested.
Performance & risk comparison
| Metric | FDVV | SCHD |
|---|---|---|
| Max drawdown (5 y) | (20.2%) | (16.8%) |
| Growth of $1,000 over 5 years | $1,757 | $1,285 |
What's inside
SCHD, formed in October 2011, holds around 100 stocks. Its portfolio is concentrated in energy (19%), consumer staples (19%), and healthcare (16%), with the largest positions in Merck (NYSE:MRK), Cisco Systems (NASDAQ:CSCO), and Amgen (NASDAQ:AMGN). The fund targets companies with strong dividend histories, which can aid in their resilience during downturns.
FDVV, by contrast, invests in around 120 stocks with sector weights favoring technology (26%), financial services (22%), and consumer staples (12%). Its top holdings are Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL), giving it a growth tilt relative to SCHD. Neither fund carries any unusual structural quirks or tracking overlays that would complicate long-term holding.
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What this means for investors
SCHD is one of the biggest and most popular dividend-focused ETFs. With over $73 billion in assets under management (AUM), it's the second-largest ETF focused specifically on dividend-paying stocks, and nearly 10 times bigger than FDVV. The fund has a very simple investment strategy, tracking the Dow Jones U.S. Dividend 100 Index. That index screens companies based on several dividend quality characteristics, including yield and five-year dividend growth rate. It's a low-cost way to add high-quality, high-yielding dividend growth stocks to your portfolio.
FDVV, on the other hand, focuses more on companies that should be able to grow their dividends. It sacrifices some yield for more growth potential. As a result, the fund has delivered a higher total return in more recent years, due to its higher allocation to faster-growing technology companies.
Given these differences, investors seeking a lower risk, more income-focused fund should gravitate towards SCHD. Meanwhile, more growth-oriented investors should consider FDVV.
Glossary
Expense ratio: The annual fee, expressed as a percentage, that a fund charges to cover operating costs.
Dividend yield: A fund's annual dividends divided by its share price, shown as a percentage.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Beta: A measure of a fund's volatility compared to the overall market, typically the S&P 500.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
AUM (Assets Under Management): The total market value of all assets a fund manages on behalf of investors.
Sector allocation: The percentage of a fund's portfolio invested in different industry sectors.
Growth of $1,000: The value a $1,000 investment would reach over a specified time period, including reinvested dividends.
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of securities like stocks or bonds.
Index tracking: A strategy where a fund aims to replicate the performance of a specific market index.
Dividend payer: A company that regularly distributes a portion of its earnings to shareholders as dividends.
Portfolio construction: The process of selecting and weighting investments within a fund to achieve specific objectives.
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Matt DiLallo has positions in Apple and Schwab U.S. Dividend Equity ETF and has the following options: short January 2026 $265 calls on Apple. The Motley Fool has positions in and recommends Amgen, Apple, Cisco Systems, Merck, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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