The Vanguard High Dividend Yield ETF (VYM) and Fidelity High Dividend ETF (FDVV) offer exposure to high-yield U.S. companies but differ in their approaches. VYM has a lower expense ratio of 0.06% compared to FDVV’s 0.15%. FDVV boasts a higher dividend yield of 3.02% versus VYM’s 2.42%. Both have similar returns but vary in cost, dividend payout, and risk.

VYM tracks the FTSE High Dividend Yield Index, holding 566 stocks with top sectors in financial services, technology, and healthcare. FDVV focuses more on technology and consumer defensive stocks with just 107 holdings, featuring top positions in Nvidia, Microsoft, and Apple. FDVV’s sector tilt strategy offers higher yield potential but also concentrated risk.

Investors seeking high dividend payouts may favor FDVV’s 3.02% yield over VYM’s 2.42%, despite FDVV’s higher expense ratio. VYM leans toward financial services, while FDVV tilts towards the tech sector, showing more volatility with a higher beta and greater drawdown over five years. Choosing between them will depend on individual risk tolerance and investment goals.

Read more at Yahoo Finance: How These Popular Dividend ETFs Stack Up on Yield, Costs, and Risk