HDV vs. FDVV: One of These High-Dividend ETFs Has a Surprising Secret
Key Points
iShares Core High Dividend ETF offers a more competitive expense ratio than Fidelity High Dividend ETF but has generated a lower total return over the past 12 months.
Fidelity High Dividend ETF provides exposure to growth sectors like technology and financials while iShares Core High Dividend ETF prioritizes energy and healthcare.
iShares Core High Dividend ETF has demonstrated lower price volatility and smaller historical drawdowns than the Fidelity fund over the last five years.
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The iShares Core High Dividend ETF (NYSEMKT:HDV) may appeal to income-focused investors who prioritize defensive stability, while the Fidelity High Dividend ETF (NYSEMKT:FDVV) looks better for those seeking higher growth potential.
Both funds target dividend-paying U.S. equities, yet they take very different paths to achieve that goal. While HDV prioritizes established, lower-volatility companies, FDVV integrates growth-oriented sectors, resulting in distinct risk profiles for income-focused investors who must choose between sector stability and growth exposure.
Snapshot (cost & size)
| Metric | HDV | FDVV |
|---|---|---|
| Issuer | iShares | Fidelity |
| Expense ratio | 0.08% | 0.15% |
| 1-yr return (as of June 1, 2026) | 19.4% | 26.5% |
| Dividend yield | 2.9% | 2.7% |
| Beta | 0.53 | 0.86 |
| AUM | $13.3 billion | $9.2 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. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is the more affordable choice with an expense ratio of 0.08%, which is 0.07 percentage points lower than the 0.15% charged by the Fidelity fund. Regarding income, the iShares fund currently offers a distribution yield of 2.9% compared to 2.7% for its peer.
Performance & risk comparison
| Metric | HDV | FDVV |
|---|---|---|
| Max drawdown (5 yr) | (15.4%) | (20.2%) |
| Growth of $1,000 over 5 years (total return) | $1,625 | $1,900 |
The Fidelity High Dividend ETF (NYSEMKT:FDVV) was launched in 2016 and manages a portfolio of 119 holdings. This fund utilizes a strategy that targets higher relative dividend yields through specific sector tilts. Currently, its largest positions include Nvidia (NASDAQ:NVDA) at 6.88%, Apple (NASDAQ:AAPL) at 6.13%, and Microsoft (NASDAQ:MSFT) at 4.40%. Its sector allocation leans heavily into growth-oriented areas, including technology at 29%, financial services at 17%, and consumer cyclical at 14%. The Fidelity fund has paid $1.66 per share over the trailing 12 months.
In contrast, the iShares Core High Dividend ETF (NYSEMKT:HDV) was launched in 2011 and follows an index of relatively high-dividend-paying domestic stocks. It maintains a tighter list of 74 holdings. Its sector allocation is significantly more defensive, with consumer defensive accounting for 24%, energy for 22%, and healthcare for 16% of assets. Its top holdings include Exxon Mobil (NYSE:XOM) at 8.06%, Chevron (NYSE:CVX) at 6.16%, and Abbvie (NYSE:ABBV) at 5.69%. The iShares fund has a trailing-12-month dividend of $0.79 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Both HDV and FDVV carry the "high dividend" label, but take a closer look at FDVV's portfolio. Its top four holdings of Nvidia, Apple, Microsoft, and Broadcom together account for more than 20% of the fund, yet none of them yields more than 1%. Calling these high-dividend stocks requires a generous definition of the term.
FDVV justifies that inclusion through a forward-looking screen that bets on future dividend growth rather than current yield. That approach has delivered stronger total returns over the last few years, driven largely by those same tech holdings. So it is less a traditional income fund and more of a growth-tilted hybrid.
HDV is the more honest expression of what dividend investors typically want. Its portfolio concentrates in consumer staples, energy, and healthcare. These sectors generate substantial, reliable cash and pay it out consistently. HDV charges less than half of what FDVV does, making it the more cost-efficient choice for investors whose primary goal is dependable income rather than growth.
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Sara Appino has positions in Apple and Nvidia. The Motley Fool has positions in and recommends AbbVie, Apple, Broadcom, Chevron, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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