The Vanguard High Dividend Yield ETF (VYM) and Fidelity High Dividend ETF (FDVV) both target U.S. companies with above-average dividend yields but use different approaches. VYM has a lower expense ratio of 0.06% compared to FDVV’s 0.15%, while FDVV offers a higher dividend yield of 3.02% versus VYM’s 2.42%. FDVV has a more tech-heavy portfolio with a sector-constrained approach, while VYM tracks a broader index with a full-replication approach. Investors seeking higher dividends may prefer FDVV, while those prioritizing cost savings may lean towards VYM. Both funds have similar returns but differ in risk and sector allocation.

In terms of performance and risk, FDVV has experienced a higher maximum drawdown of -20.17% over the last five years compared to VYM’s -15.87%. Despite this, FDVV has shown a growth of $1,000 over five years to $1,754, slightly outperforming VYM’s growth to $1,567. VYM holds 566 stocks with a focus on financial services, technology, and healthcare, while FDVV has 107 holdings with a heavier emphasis on technology and consumer defensive sectors. The funds offer different risk profiles and potential for returns, catering to investors with varying preferences and goals.

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