FDVV vs. HDV: 2 High-Dividend ETFs With Opposite Ideas About Big Tech
Key Points
FDVV comes with a higher expense ratio but has outperformed HDV over the past year and five-year period.
Both ETFs offer nearly identical dividend yields, yet their sector exposures differ significantly.
FDVV leans into technology and cyclicals, while HDV emphasizes defensive and energy stocks.
- 10 stocks we like better than Fidelity Covington Trust - Fidelity High Dividend ETF ›
The Fidelity High Dividend ETF (NYSEMKT:FDVV) and the iShares Core High Dividend ETF (NYSEMKT:HDV) diverge most on sector mix and recent returns, with FDVV charging a slightly higher fee but delivering stronger performance and more tech exposure.
Both FDVV and HDV target U.S. stocks with above-average dividends, but their portfolios and risk profiles set them apart. This comparison looks at cost, returns, risk, portfolio makeup, and liquidity to help investors weigh which high-yield approach may appeal more for their needs.
Snapshot (cost & size)
| Metric | HDV | FDVV |
|---|---|---|
| Issuer | IShares | Fidelity |
| Expense ratio | 0.08% | 0.15% |
| 1-yr return (as of 2026-03-11) | 17.6% | 19.31% |
| Dividend yield | 2.9% | 2.8% |
| Beta | 0.42 | 0.80 |
| AUM | $13.8 billion | $8.9 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.
FDVV charges a higher expense ratio than HDV, though both remain low-cost by industry standards. The two funds currently deliver nearly the same dividend yield, so the main cost difference comes down to fees rather than income.
Performance & risk comparison
| Metric | HDV | FDVV |
|---|---|---|
| Max drawdown (5 y) | -15.41% | -20.17% |
| Growth of $1,000 over 5 years | $1,423 | $1,603 |
FDVV has delivered a stronger total return over five years, growing $1,000 to $1,603 versus $1,423 for HDV. However, FDVV has also experienced a deeper maximum drawdown, highlighting its greater volatility.
What's inside
FDVV tracks a high-dividend strategy with a notable tilt toward technology (25%), financial services (17%), and consumer cyclical stocks (16%), holding 119 companies as of 9.5 years since inception. Its top three positions—Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT)—account for over 16% of assets, creating a meaningful tech overweight compared to many dividend peers.
By contrast, HDV takes a more defensive approach, heavily weighted to consumer defensive (28%), energy (26%), and healthcare (17%) sectors. Its largest holdings—Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), and Johnson & Johnson (NYSE:JNJ)—reflect this conservative, income-focused tilt. Neither ETF includes leverage, currency hedging, or other structural quirks.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
High-dividend ETFs tend to conjure images of utilities, oil majors, and pharmaceutical giants — the classic income stalwarts. FDVV quietly scrambles that picture. Fidelity's High Dividend ETF uses a forward-looking screen that evaluates companies on expected dividend growth, not just current yield, which is why you'll find Nvidia, Microsoft, and Apple in the mix alongside the traditional income names. HDV, by contrast, is a stricter gatekeeper: iShares' fund pulls from roughly 80 of the highest-yielding U.S. stocks that pass Morningstar's financial health and competitive moat screens, with no appetite for tech giants not yet generating the kind of consistent payouts that qualify.
The result is two ETFs with a similar name but strikingly different personalities. FDVV is broader and more balanced, but you pay nearly twice the fee for that flexibility. HDV is cheaper, but its tight roster means when healthcare stumbles or energy pulls back, the whole fund feels it.
Investors who want dividend income without completely abandoning growth will find FDVV the more flexible choice. HDV makes more sense for income-first investors who prefer traditional dividend sectors and are comfortable with a concentrated, lower-cost fund where three sectors — healthcare, energy, and consumer staples — do most of the heavy lifting.
Should you buy stock in Fidelity Covington Trust - Fidelity High Dividend ETF right now?
Before you buy stock in Fidelity Covington Trust - Fidelity High Dividend ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fidelity Covington Trust - Fidelity High Dividend ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,735!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,140,464!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 12, 2026.
Sara Appino has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Chevron, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
Recommended Articles
