Dividend ETFs: How SCHD and FDVV Measure Up

Jake Lerch, The Motley Fool

Mon, June 22, 2026 astatine 10:25 AM CDT 4 min read

Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) offers little expenses and a higher dividend output with reduced volatility, whereas Fidelity High Dividend ETF (NYSEMKT:FDVV) provides higher humanities maturation done a dense tilt toward exertion stocks.

Investors seeking reliable income streams often measure these 2 dividend-focused heavyweights. While some funds prioritize companies that instrumentality superior to shareholders, they disagree importantly successful their assemblage concentrations and outgo structures. This examination examines whether the Schwab fund's established output oregon the Fidelity fund's growth-oriented tilt amended suits a semipermanent strategy.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation yield.

The Schwab money is importantly much affordable with an disbursal ratio of 0.06%, compared to 0.15% for the Fidelity fund. Additionally, the Schwab money offers a higher payout, with a output spread of 0.47 percent points.

Performance & hazard examination

What's wrong

The Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) tracks high-yield U.S. stocks with beardown fiscal ratios. It manages 103 holdings, with assemblage allocations balanced crossed exertion astatine 19.00%, user antiaircraft astatine 18.00%, and healthcare astatine 18.00%. Its largest positions see Texas Instruments (NASDAQ:TXN) astatine 5.78%, Qualcomm (NASDAQ:QCOM) astatine 5.64%, and UnitedHealth Group (NYSE:UNH) astatine 5.43%. Launched successful 2011, the money has a trailing-12-month dividend of $1.06 per share. This attack helps it support a little beta than galore peers.

Conversely, the Fidelity High Dividend ETF (NYSEMKT:FDVV) overweights sectors with precocious yields but presently allocates 31.00% to technology. Its apical holdings see Nvidia (NASDAQ:NVDA) astatine 6.71%, Apple (NASDAQ:AAPL) astatine 5.92%, and Microsoft (NASDAQ:MSFT) astatine 4.11%. The money launched successful 2016 and holds 119 stocks. Over the trailing 12 months, it paid $1.66 per share. This tech-heavy strategy has captured much upside during caller maturation cycles, resulting successful higher five-year full returns but besides a deeper maximum drawdown.

For much guidance connected ETF investing, cheque retired the afloat usher astatine this link.