The Fidelity High Dividend ETF (FDVV) has a higher dividend yield than the Vanguard High Dividend Yield ETF (VYM) but also experiences greater volatility due to a heavier technology focus. VYM boasts a lower expense ratio and smaller drawdown in the past five years. Both aim to deliver above-average income from strong dividend companies.

FDVV holds 107 stocks with a tech-heavy sector tilt, while VYM holds 566 stocks with a broader mix, including financial services and healthcare. VYM charges a significantly lower expense ratio and tracks a passively managed high-yield index. FDVV introduces sector tilts for yield enhancement.

VYM has an expense ratio of 0.06%, a 1-year return of 13.14%, and a dividend yield of 2.42%. FDVV has an expense ratio of 0.15%, a 1-year return of 13.43%, and a dividend yield of 3.02%. VYM’s assets under management are $84.6 billion compared to FDVV’s $7.7 billion.

VYM is more diversified with top holdings in financial services, technology, and healthcare, while FDVV leans heavily on technology, financial services, and consumer defensive sectors. VYM’s broad reach and index-tracking approach provide wide diversification compared to FDVV’s more concentrated tech tilt.

Tech stocks, like those in FDVV, can offer higher returns but also higher volatility compared to VYM’s more stable mix. VYM’s lower expense ratio can save investors money over time, while FDVV’s higher dividend payout may appeal to income-focused investors. The choice between the two depends on investment goals and risk tolerance.

Read more at Yahoo Finance: Which High-Yield Dividend ETF Is the Best Choice for Investors?