Which High Dividend ETF Is Better, Vanguard's VYM or Fidelity's FDVV?
Key takeaways
- Both ETFs cater to investors seeking regular cash flow from equities, yet they employ different index strategies.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- The Vanguard fund is significantly more affordable with an expense ratio of 0.04%.
Both ETFs cater to investors seeking regular cash flow from equities, yet they employ different index strategies. VYM focuses on broad exposure to high-yield U.S. stocks, whereas FDVV targets higher income potential by applying specific sector weightings based on historical yield performance.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is significantly more affordable with an expense ratio of 0.04%. While its 2.20% yield is respectable, FDVV is higher at 2.69%, which may appeal to investors prioritizing immediate income over the lowest possible fees.