Vanguard vs. Fidelity Dividend ETFs: Are a Higher Yield and Recent Returns Worth Higher Fees?

Sarah Sidlow, The Motley Fool

Fri, May 22, 2026 astatine 9:03 AM CDT 4 min read

Many dividend-focused exchange-traded funds instrumentality 1 of 2 divergent paths: prioritizing existent income oregon focusing connected semipermanent maturation potential. This examination examines however Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) and Fidelity High Dividend ETF (NYSEMKT:FDVV) attack these goals, offering chiseled choices for investors weighing precocious contiguous payouts against established dividend reliability, little volatility, and institutional-scale outgo efficiency.

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 Vanguard money remains 1 of the astir cost-effective options successful the class with its 0.04% disbursal ratio, which tin importantly interaction full returns implicit agelong holding periods. In contrast, the Fidelity money charges 0.15% but compensates income-oriented investors with a substantially higher trailing-12-month distribution, maintaining a output spread of 1.29% implicit the Vanguard offering.

Performance & hazard examination

What's wrong

The Vanguard Dividend Appreciation ETF owns companies that person accrued dividends for astatine slightest 10 consecutive years. Its portfolio includes 332 holdings, emphasizing resilience implicit precocious yield. Its largest positions see Broadcom astatine 5.2%, Apple astatine 4.07%, and Microsoft astatine 3.95%. Launched successful 2006, the money has a trailing-12-month dividend of $3.45 per share. Its assemblage vulnerability is balanced crossed exertion astatine 25%, fiscal services astatine 21%, and healthcare astatine 16.5%.

The Fidelity High Dividend ETF employs a much concentrated attack with 112 holdings, targeting stocks that connection higher yields than the broader market. Its largest positions see Nvidia astatine 6.84%, Apple astatine 5.7%, and Microsoft astatine 4.5%. Launched successful 2016, the money has a trailing-12-month dividend of $1.66 per share. It carries a dense value successful exertion astatine 27%, with further allocations to fiscal services astatine 18.9% and user cyclical companies astatine 14.5%.

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