VYM Plays It Broad and Safe, FDVV Adds Tech Titans Like Nvidia to the Dividend Mix
Key Points
VYM charges a much lower expense ratio, but FDVV offers a higher dividend yield and heavier tech exposure.
FDVV shows a slightly deeper drawdown and smaller assets under management (AUM), yet outpaced VYM in five-year growth.
VYM holds nearly five times as many stocks, while FDVV’s top holdings are more concentrated in technology.
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Vanguard High Dividend Yield ETF (NYSEMKT:VYM) keeps costs extremely low and offers broad sector diversification, while Fidelity High Dividend ETF (NYSEMKT:FDVV) charges a higher fee but delivers a higher yield and leans more into technology stocks.
Both VYM and FDVV aim to provide investors with dependable dividend income, but they go about it differently: VYM tracks a broad index of high-yielding U.S. companies, while FDVV applies its own sector tilts and selection criteria to pursue higher yields. This comparison looks at cost, performance, portfolio makeup, and risk to help clarify which ETF may appeal depending on an investor’s priorities.
Snapshot (cost & size)
| Metric | VYM | FDVV |
|---|---|---|
| Issuer | Vanguard | Fidelity |
| Expense ratio | 0.04% | 0.15% |
| 1-yr return (as of 2026-03-11) | 20.57% | 19.31% |
| Dividend yield | 2.3% | 2.9% |
| Beta | 0.75 | 0.87 |
| AUM | $92.3 billion | $8.86 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
VYM remains more affordable, charging just 0.04% annually, while FDVV costs 0.15%. FDVV does offer a higher dividend payout, with a 2.9% yield compared to VYM’s 2.3% (as of March 2026).
Performance & risk comparison
| Metric | VYM | FDVV |
|---|---|---|
| Max drawdown (5 y) | -15.83% | -20.17% |
| Growth of $1,000 over 5 years | $1,487 | $1,603 |
What's inside
FDVV holds 119 stocks and has been around for 9.5 years, positioning itself with a notable technology tilt: 25% of assets are in tech, 17% in financial services, and 16% in consumer cyclicals. Its top holdings—Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT)—make up over 16% of the fund, so performance is more sensitive to large-cap tech moves.
VYM, by contrast, is broader with 589 holdings and a sector mix led by financial services (21%), technology (16%), and healthcare (13%). Its top positions—Broadcom (NASDAQ:AVGO), JPMorgan Chase (NYSE:JPM), and Exxon Mobil (NYSE:XOM)—are less concentrated, which may help lower single-stock risk. Neither ETF has notable quirks or special index rules that could complicate expectations.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Dividend-paying stocks sit at the heart of countless retirement portfolios, but not all dividend funds are fishing in the same pond. VYM casts an enormous net, owning over 500 large and mid-cap companies that rank in the top half of dividend payers. FDVV runs a tighter, more opinionated portfolio of around 119 stocks, screening for companies expected to both pay and grow their dividends going forward.
That forward-looking screen is what makes FDVV genuinely distinctive. It allows technology giants to clear the bar, meaning FDVV's top holdings include names like Nvidia, Microsoft, and Apple alongside traditional dividend stalwarts. VYM sticks to classic dividend territory: financials, consumer staples, and energy. Both funds yield roughly 2%-3%, but FDVV charges 0.15% versus VYM's rock-bottom 0.06%.
For pure income investors who want predictable, battle-tested dividend exposure without surprises, VYM is the stronger choice. Its 550-plus holdings, Vanguard's legendary cost discipline, and decades of institutional trust make it one of the most reliable dividend funds available. FDVV is better for investors who want dividend income without abandoning growth entirely -- the tech exposure gives it a higher ceiling on total returns, but also means it can behave less like a traditional income fund and more like a growth-tilted hybrid when markets get choppy.
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JPMorgan Chase is an advertising partner of Motley Fool Money. Sara Appino has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, JPMorgan Chase, Microsoft, Nvidia, and Vanguard High Dividend Yield ETF and is short shares of Apple. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
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