The FDVV ETF Delivers Higher 5-Year Growth Than the HDV ETF
Key Points
FDVV charges a higher expense ratio but delivered notably stronger 1-year and 5-year total returns
HDV leans into energy and defensive sectors, while FDVV is heavier in technology and financials
Both funds offer similar dividend yields and avoid leverage, but FDVV has experienced deeper drawdowns
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The iShares Core High Dividend ETF (NYSEMKT:HDV) and Fidelity High Dividend ETF (NYSEMKT:FDVV) differ most in sector exposure, recent performance, and cost, with FDVV charging more but posting higher returns and offering a larger technology tilt.
Both HDV and FDVV focus on higher-yielding U.S. stocks, but their approaches and sector mixes lead to distinct risk and return profiles. This comparison looks at cost, performance, risk, liquidity, and portfolio makeup to help investors assess which may better fit their income or growth objectives.
Snapshot (cost & size)
| Metric | HDV | FDVV |
|---|---|---|
| Issuer | IShares | Fidelity |
| Expense ratio | 0.08% | 0.15% |
| 1-yr return (as of 2026-04-24) | 22.9% | 28.5% |
| Dividend yield | 2.9% | 2.8% |
| AUM | $13.2 billion | $8.5 billion |
The 1-yr return represents total return over the trailing 12 months.
FDVV comes with a significantly higher expense ratio, but both funds offer nearly identical dividend yields, so cost-conscious investors may find HDV more affordable for a similar payout.
Performance & risk comparison
| Metric | HDV | FDVV |
|---|---|---|
| Growth of $1,000 over 5 years | $1,659 | $1,883 |
What's inside
FDVV targets high yield by leaning into sectors like technology (26%), financial services (18%), and consumer cyclical (15%), resulting in a portfolio of 119 holdings as of its 9.6-year history. Its top holdings include Nvidia Corp (NASDAQ:NVDA), Apple Inc (NASDAQ:AAPL), and Microsoft Corp (NASDAQ:MSFT), which contribute to its growth potential but may also add volatility. The fund does not use leverage or track a published index, and there are no notable structural quirks affecting investors.
HDV, in contrast, tilts heavily toward consumer defensive (24%), energy (22%), and healthcare (17%) stocks. Its top holdings are Exxon Mobil Corp (NYSE:XOM), Chevron Corp (NYSE:CVX), and Johnson & Johnson (NYSE:JNJ), favoring more traditional, defensive dividend payers. This sector bias could appeal to those seeking income stability over aggressive growth.
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What this means for investors
Over the past five years, the iShares Core High Dividend ETF (HDV) and the Fidelity High Dividend ETF (FDVV) have underperformed for investors who bought at their peaks a few years ago. HDV is down about 31.9% from the peak it set in 2023, and FDVV is about 29% below the peak it set over three years ago.
FDVV could appeal to investors who appreciate rapid dividend growth more than a high dividend yield upfront. All three of its largest components, Microsoft, Apple, and Nvidia, offer yields below 1%, but some of these stocks have cranked their payouts higher in the past. In 2024, Nvidia raised its payout by 150%. Microsoft has raised its payout 152% over the past decade.
FDVV’s focus on technology stocks has worked out well for investors over the past few years. If we include dividend payments, folks who’ve held the FDVV ETF have realized a 66.5% return. Over the same period, the HDV ETF produced a paltry 43.9% return. Both of these dividend-focused ETFs have underperformed the S&P 500 index. Popular ETFs that follow the benchmark returned more than 79% over the past three years.
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Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Chevron, Microsoft, and Nvidia. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
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