Vanguard vs. Fidelity: Is VIG or FDVV the Better Buy for Dividend Investors?
Key Points
Vanguard Dividend Appreciation ETF offers a significantly lower expense ratio and higher assets under management than Fidelity High Dividend ETF.
Fidelity High Dividend ETF offers a higher trailing 12-month dividend yield and has delivered stronger total returns over the past five years.
While both funds have high technology exposure, the Vanguard Dividend Appreciation ETF holds more than twice as many individual stocks.
The Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) focuses on companies with a consistent history of increasing dividends, while the Fidelity High Dividend ETF (NYSEMKT:FDVV) targets stocks with the highest current yield potential.
Both funds offer exposure to dividend-paying U.S. equities, yet they follow distinct methodologies. VIG emphasizes dividend growth and quality, providing a more conservative profile. In contrast, FDVV seeks higher immediate income through a sector-neutral-lite strategy, resulting in a significant concentration in the technology sector.
Snapshot (cost & size)
| Metric | FDVV | VIG |
|---|---|---|
| Issuer | Fidelity | Vanguard |
| Share price | $63.05 (as of 2026-08-20) | $242.23 (as of 2026-08-20) |
| Expense ratio | 0.15% | 0.04% |
| 1-yr return (as of 2026-08-20) | 19.0% | 17.3% |
| Dividend yield | 2.7% | 1.5% |
| Beta | 0.86 | 0.81 |
| AUM | $10.2 billion | $130.9 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Cost-conscious investors may prefer the Vanguard fund for its lower expense ratio of 0.04%. However, those prioritizing current income could find the Fidelity fund more appealing due to its higher yield of 2.7%, compared to 1.5% for its peer.
Performance & risk comparison
| Metric | FDVV | VIG |
|---|---|---|
| Max drawdown (5 yr) | (20.2%) | (20.4%) |
| Growth of $1,000 over 5 years (total return) | $1,953 | $1,640 |
What's inside
The Vanguard Dividend Appreciation ETF maintains a diversified portfolio of 338 holdings, with technology at 26%, financial services at 22%, and healthcare at 18%. Its largest positions include Broadcom Inc (NASDAQ:AVGO) at 4.63%, Apple Inc (NASDAQ:AAPL) at 4.45%, and Microsoft Corp (NASDAQ:MSFT) at 4.34%. The fund was launched in 2006. Vanguard Dividend Appreciation ETF has paid $3.58 per share over the trailing 12 months, which, on its recent ~$242.23 share price, works out to a 1.5% yield.
The Fidelity High Dividend ETF is more concentrated, holding 119 stocks with a heavy 29% tilt toward technology. Other major sectors include financial services at 19% and consumer cyclicals at 13%. Top holdings include Nvidia Corp (NASDAQ:NVDA) at 7.01%, Apple Inc at 6.24%, and Microsoft Corp at 5.01%. It was launched in 2016. Fidelity High Dividend ETF has paid $1.73 per share over the trailing 12 months, which, on its recent ~$63.05 share price, works out to a 2.7% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Ultimately, I don't think dividend investors can go wrong with either the FDVV or VIG ETFs. They're a collection of some of the most robust dividend-paying stocks on the exchanges today and offer slightly different paths to collecting some passive income. Over the last decade, FDVV and VIG have delivered total returns of 13.6% and 13.5%, respectively, while VIG has a long-term track record of 10.3% going back to 2006.
That said, if I had to choose between the two, I'd lean ever-so-slightly toward VIG for a few minor reasons. First, VIG's expense ratio of 0.04% is dirt cheap and less than a quarter of FDVV's. Considering their history of similar returns, I just want the cheaper ETF. Second, I like that VIG casts a slightly wider net, holding over 300 stocks versus FDVV's 119. I believe this helps VIG maintain a slightly lower beta and keeps the ETF from being overconcentrated in any one stock.
Lastly -- and from a more personal investing strategy point of view -- I'd rather own VIG, as it specifically seeks out dividend growth stocks rather than higher-yielding companies today. This keeps more of its holdings on the growth end of the investing spectrum, whereas FDVV may have a few more value-style stocks that aren't as appealing to me. However, for certain investors FDVV's lower P/E ratio of 19 versus VIG's 26 and higher dividend yield may make more sense -- I'd just prefer a little extra growth since I'd be planning to hold for decades.
Josh Kohn-Lindquist has positions in Nvidia. The Motley Fool has positions in and recommends Apple, Broadcom, Microsoft, Nvidia, and Vanguard Dividend Appreciation ETF. The Motley Fool has a disclosure policy.