Dividend Equity ETF (NYSEMKT:SCHD) offers a lower-cost, lower-volatility approach compared to the Fidelity High Dividend ETF (NYSEMKT:FDVV), which leans heavily into growth-oriented sectors like technology and financial services. Income investors often choose between high current yield and long-term growth potential. While both funds target dividend-paying stocks, they take diverging paths through the market.
The Fidelity fund seeks enhanced income through tactical sector tilts, whereas the Schwab fund tracks a disciplined index of high-quality companies. Choosing between them requires weighing sector exposure against cost efficiency. Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years).
The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield. The Schwab fund is significantly more affordable with an expense ratio of 0.06%, compared to 0.15% for the Fidelity fund.
Additionally, it offers a higher payout, providing a 0.36 percentage point advantage in trailing-12-month dividend yield. Growth of $1,000 over 5 years (total return) Schwab U.S. Dividend Equity ETF focuses on defensive stability, weighting its portfolio toward healthcare at 21%, consumer defensive at 20%, and energy at 15%.
Its largest positions include Abbott Laboratories (NYSE:ABT) at 4.78%, Amgen (NASDAQ:AMGN) at 4.63%, and Merck (NYSE:MRK) at 4.42%. It holds 103 stocks and currently has no structural quirks. The fund was launched in 2011.
Dividend Equity ETF has paid $1.05 per share over the trailing 12 months, which on its recent ~$34.43 share price works out to a 3.1% yield. Fidelity High Dividend ETF takes a more aggressive approach, holding 119 stocks with heavy concentrations in technology at 29%, financial services at 19%, and consumer cyclical at 13%. Its top holdings include Nvidia (NASDAQ:NVDA) at 7.18%, Apple (NASDAQ:AAPL) at 5.94%, and Microsoft (NASDAQ:MSFT) at 5.09%.
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