Vanguard vs. Fidelity: Is VIG or FDVV the Better Dividend ETF to Buy?

1 week ago 12

Josh Kohn-Lindquist, The Motley Fool

Sat, January 3, 2026 astatine 10:47 AM CST 5 min read

FDVV offers a higher dividend output and a somewhat amended one-year instrumentality than VIG.
VIG charges a little disbursal ratio and holds 338 stocks, with overmuch greater assets nether management.
Both ETFs thin heavy into exertion and financials, but FDVV has a larger tilt toward user antiaircraft stocks.
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Fidelity High Dividend ETF (NYSEMKT:FDVV) stands retired for its higher output and amended caller performance, portion Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) appeals with little costs, a broader portfolio, and acold greater assets nether management.

Both funds absorption connected dividend-oriented U.S. stocks, but their approaches and portfolios differ. This examination examines cost, performance, risk, and portfolio creation to assistance investors determine whether FDVV’s higher output and assemblage tilts outweigh VIG’s little fees and broader diversification.

Metric

FDVV

VIG

Issuer	Fidelity	Vanguard
Expense ratio	0.15%	0.05%
1-year instrumentality (as of 2026-1-2)	17.7%	15.1%
Dividend yield	3.02%	1.59%
Beta	0.82	0.79
AUM	$7.7 billion	$120.4 billion

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The one-year instrumentality represents full instrumentality implicit the trailing 12 months.

FDVV charges a 0.15% disbursal ratio, but VIG is adjacent much affordable astatine 0.05%. FDVV whitethorn entreaty to income-seekers with its 3.02% yield, which is substantially higher than VIG’s 1.59% payout.

Metric

FDVV

VIG

Max drawdown (5 y)	(20.2%)	(20.4%)
Growth of $1,000 implicit 5 years	$2,098	$1,713

VIG tracks a diversified handbasket of 338 large-cap U.S. companies with a past of raising dividends, spanning exertion (30%), fiscal services (21%), and healthcare (15%). Its largest holdings see Broadcom Inc. (NASDAQ:AVGO), Microsoft Corp.(NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). At astir 20 years old, VIG’s agelong way grounds and wide attack whitethorn entreaty to investors seeking stableness and wide marketplace coverage.

FDVV, by contrast, holds 119 stocks and tilts toward exertion (26%), fiscal services (19%), and user antiaircraft (12%) sectors. Its apical positions see Nvidia Corp. (NASDAQ:NVDA), Microsoft, and Apple. While some ETFs stress technology, FDVV’s added vulnerability to user defensives whitethorn signifier hazard and income characteristics differently.

Since 2016, these 2 dividend ETFs person delivered astir identical full returns for investors, with FDVV gaining 13.2% annually and VIG rising 13.1% implicit the aforesaid period. Over the past year, 3 years, and 5 years, though, FDVV has delivered superior returns -- much than doubling since 2021. However, overmuch of this outperformance for FDVV is owed to its largest position, Nvidia, which has been a 14-bagger implicit the past 5 years and present equals 6.2% of the ETF's holdings.