Fidelity High Dividend ETF

FDVV

Market cap $8.16B

Investors, especially retirees, seek a lifetime of passive income to get them through their Golden Years.

The popularity of exchange-traded funds (ETFs) has changed investing today. With over 4,000 U.S.

Dividend investing is increasingly vital amid higher rates and inflation, offering passive income and wealth compounding for retirement. Anchoring a portfolio with quality dividend ETFs like SCHD, FDVV, or CGDV can provide reliable income and potential outperformance. Combining high dividend growers (e.g., V, MA, WM) with stable high-yielders (e.g., VZ, O, ADC, STWD) balances growth and income.

No matter how much investors hope it will happen, volatility in the stock market isn't going away, and market swings of a few percentage points in a single day, which used to be incredibly rare, may become more common, especially if we are truly in an AI bubble or if there are truly signs that the last three years of double-digit gains point to signs of an impending crash.

Last year didn't end up being as pivotal as expected, with the market rallying to even higher highs, and there's plenty of uncertainty surrounding 2026.

FDVV offers a higher dividend yield and a slightly better one-year return than VIG. VIG charges a lower expense ratio and holds 338 stocks, with much greater assets under management.

The Fidelity High Dividend ETF offers an attractive combination of growth and value characteristics for investors seeking balanced exposure. My current value bucket includes SCHD, FDVV, and BRK.B, reflecting a diversified approach. FDVV stands out for blending dividend growth with high capital appreciation potential holdings.

SCHD offers a significantly lower expense ratio and a higher dividend yield than FDVV FDVV has delivered stronger one-year total returns, but SCHD experienced a shallower 5-year drawdown Sector allocations differ: FDVV leans into technology, while SCHD focuses more on energy, consumer staples, and healthcare These 10 Stocks Could Mint the Next Wave of Millionaires ›

VYM costs less and holds a much broader basket of stocks than FDVV. FDVV delivers a higher dividend yield and is more concentrated in technology.

VYM charges a lower expense ratio and holds far more stocks than FDVV. FDVV offers a higher dividend yield, but it's experienced greater volatility with a larger tilt toward technology.