VYM vs. FDVV: How These Popular Dividend ETFs Stack Up on Yield, Costs, and Risk

• VYM costs little and holds a overmuch broader handbasket of stocks than FDVV.

• FDVV delivers a higher dividend output and is much concentrated successful technology.

• VYM has seen little volatility and a shallower drawdown implicit the past 5 years.

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Both the Vanguard High Dividend Yield ETF (NYSEMKT:VYM) and the Fidelity High Dividend ETF (NYSEMKT:FDVV) purpose to supply vulnerability to U.S. companies with above-average dividend yields, but they attack this extremity successful antithetic ways.

FDVV uses a sector-constrained approach, portion VYM tracks a broad, rules-based scale of high-yielding stocks -- resulting successful immoderate notable differences successful cost, portfolio makeup, and hazard characteristics. Here's however the 2 funds stack up.

Beta measures terms volatility comparative to the S&P 500. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VYM is much affordable connected fees, charging a overmuch little disbursal ratio. FDVV, however, offers a higher dividend payout, which whitethorn entreaty to those prioritizing income implicit outgo savings.

VYM tracks the FTSE High Dividend Yield Index and holds 566 stocks. Its largest assemblage exposures are fiscal services (21% of full assets), exertion (18%), and healthcare (13%), with apical holdings including Broadcom, JPMorgan Chase, and Exxon Mobil. The fund’s passive, full-replication attack aims for accordant tracking.

FDVV, by contrast, concentrates much heavy successful exertion (26%) and user antiaircraft (12%) stocks, with conscionable 107 holdings. Its apical positions are Nvidia, Microsoft, and Apple. FDVV’s methodology seeks higher output done assemblage tilts, which tin pb to much concentrated bets but besides higher payout potential.

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VYM and FDVV person experienced akin one- and five-year full returns, but they bash person notable differences successful interest structure, dividend payout, and wide risk.

FDVV offers the higher of the 2 dividend yields, astatine 3.02% compared to VYM's 2.42%. For investors seeking the highest imaginable dividend payout, FDVV has the wide edge.

That said, its higher disbursal ratio (0.15% compared to 0.06%) volition devour distant astatine immoderate of that income. In presumption of take-home earnings, aft accounting for fees, these 2 funds volition apt beryllium reasonably akin for astir investors.