What does expense ratio mean and how do FDVV and SCHD compare?

The expense ratio represents the annual fee deducted from a fund's assets to cover management costs. It significantly impacts long-term net returns. Based on the provided data, FDVV has an expense ratio of 0.15%, which is competitive for an actively managed large-value strategy. SCHD has a much lower expense ratio of 0.06%. Although a difference in percentage points may appear minor, this cost reduction enhances SCHD's operational efficiency. Over extended periods, even a small difference in fees can meaningfully reduce the impact of compounding on an investor's capital base.

Is FDVV or SCHD better for cost efficiency?

SCHD is generally regarded as having superior cost efficiency due to its lower expense ratio of 0.06%, compared to 0.15% for FDVV. This lower fee structure helps preserve net returns over time, which is a notable advantage for large-value equity dividend strategies. FDVV remains competitive within its specific category, but the difference in percentage points is a primary factor for investors evaluating fee-sensitive holdings. Investors often prioritise these efficiency metrics when assessing how fees might reduce compounding. While SCHD is more cost-effective, both ETFs serve distinct portfolio functions and have different fee structures that require careful comparison.

What is the role of the dividend yield?

The dividend yield is a critical financial metric that indicates the annual income return relative to an asset's current price. It provides investors with a clear indication of the potential income generation and helps them compare income-producing assets. For FDVV, the yield is 2.74%, while SCHD offers 3.11%, representing an above-average return in this category. Higher yields can suggest better income opportunities, but they also require careful consideration of sustainability and underlying fundamentals. A yield is always a dynamic measure. Investors should analyse it alongside other metrics to understand how effectively a fund generates income from its selected holdings.

Do FDVV or SCHD have significant overlap in their portfolios?

Based on the provided data, FDVV and SCHD have minimal top-10 holding overlap. They share only one common top-10 holding: KO. The other nine top-ten positions are entirely distinct. FDVV includes NVDA, AAPL, MSFT, DELL, AVGO, JPM, GOOGL, BAC, and BBY. SCHD features MRK, ABT, AMGN, CVX, COP, PG, VZ, UNH, and HD. This low overlap indicates their portfolios differ significantly. While both fall under the large-value category, they provide exposure to different companies and specific sectors. For instance, FDVV includes tech and financials, while SCHD favours healthcare and energy. This distinction is a core factor for investors when assessing the potential diversification benefits of holding both.

Which fund typically offers a higher yield?

Based on the provided data, SCHD typically offers a higher yield. SCHD has a 3.11% dividend yield, which exceeds the average for comparable dividend-focused ETFs. In contrast, FDVV has a 2.74% yield, which trails many alternatives within its category. This yield difference is a primary factor investors consider when evaluating income generation. A higher yield suggests that SCHD generates more income per dollar invested compared to FDVV. However, it is important to note that yield alone does not determine total return. The underlying portfolio composition and specific company dividends drive these figures, meaning investors should analyse the full income structure and stability.

How does FDVV compare to SCHD in size?

When evaluating ETF size, SCHD is substantially larger than FDVV. According to the provided data, SCHD boasts $112.8 billion in net assets, providing it with significant liquidity and operational stability. FDVV, in comparison, holds $10.3 billion in net assets. While this smaller size still offers sufficient scale for most individual investors, the gap between the two is considerable. This $102.5 billion difference implies distinct market impact profiles. SCHD's massive size allows for deeper liquidity and narrower spreads for traders, whereas FDVV is an established fund that provides a more concentrated, active portfolio.

Which fund aligns with a growth-dividend hybrid approach?

FDVV is more closely associated with a growth-dividend hybrid approach than SCHD. FDVV's top holding is Nvidia at a 7.28% weight. This specific inclusion indicates growth exposure that is not typically found in traditional dividend strategies. It suggests a strategy focused on companies with strong dividend potential and capital appreciation characteristics. In contrast, SCHD does not hold Nvidia in its top 10 positions and offers no technology exposure in its primary holdings. By including a major tech firm as its largest holding, FDVV positions itself as a tool for a hybrid growth-dividend strategy.

What sector exposure distinguishes FDVV from SCHD?

FDVV and SCHD exhibit distinct sector exposures. FDVV holds a diversified top-10 across technology, financials, and consumer staples. This mix provides a balance of growth and defensive companies. SCHD, however, is heavily concentrated in healthcare and energy sectors, with top positions in Merck, Abbott, and Chevron. This composition offers different risk and return characteristics. SCHD lacks the technology exposure typical in broader market indices, making it more defensive and value-oriented. FDVV has more growth characteristics through its inclusion of large-cap tech names. These distinct sector biases provide different portfolio diversification benefits depending on an investor's strategic needs.

What is the company-specific risk profile of SCHD?

SCHD faces a notable company-specific risk due to the significant weight of Merck in its top holdings. Merck constitutes 4.89% of SCHD's portfolio. While it is a large healthcare firm, such a substantial concentration in a single stock can lead to idiosyncratic risk if Merck's performance deviates from the broader fund. For context, Merck's weight is higher than FDVV's holding in JPM at 2.77% or BBY at 1.83%. These figures highlight SCHD's portfolio construction. This concentration makes SCHD more sensitive to the specific factors affecting the healthcare sector, requiring careful analysis.

What can be said about the index tracking for FDVV and SCHD?

Both FDVV and SCHD fall under the large-value category, but they have distinct portfolio construction differences. FDVV provides a diversified top-10 across technology, financials, and consumer staples. SCHD has a notable concentration in healthcare and energy, offering less technology exposure. Both funds share only one top-10 holding, KO, indicating they have very low overlap and provide distinct portfolio diversification. The index tracking details for both are not available, so it is not possible to specify the precise methodologies or the exact index each fund follows for these portfolios.

What should I check before investing?

Before investing, it is important to review specific fund metrics to understand what each product offers. Compare key data points like the 0.15% expense ratio and 2.74% dividend yield for FDVV against the 0.06% ratio and 3.11% yield for SCHD. Check the top 10 holdings to see how they align with your goals, noting that the funds only share KO. Remember that FDVV's sector weights are not available, while SCHD has a 4.89% position in Merck. Always verify official factsheets for the latest performance, and seek independent financial advice to align these facts with your situation.

What is the disclaimer on this comparison page?

This comparison of FDVV and SCHD is strictly for educational purposes and does not constitute financial advice. The figures provided, including the $10.3 billion and $112.8 billion in net assets for FDVV and SCHD respectively, are based on data from 2026-09-22. Since FDVV and SCHD share only KO in their top 10 holdings, the portfolios differ significantly. Investors should verify all information independently, as market conditions and fund data change. Always consider your specific risk profile and seek independent professional advice before making investment decisions regarding exchange-traded funds.

FDVV vs SCHD

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare FDVV (Fidelity Covington Trust High Dividend ETF) and SCHD (US Dividend Equity ETF Schwab) on fees, holdings, and dividends. Both are Large Value funds; FDVV has a 0.15% expense ratio and 2.74% yield, while SCHD has 0.06% and 3.11%. Index tracking details not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FDVV

Metric

SCHD

0.15%

Expense Ratio

0.06%

2.74%

Dividend Yield

3.11%

$10.34B

Net Assets

$112.77B

109

Holdings

102

Sep 12, 2016

Inception Date

Oct 20, 2011

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Index Tracked

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Large Value

Fund Category

Large Value

SCHD costs about $9.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FDVV	SCHD
KOThe Coca-Cola Company	2.00%	4.27%

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Investment Analysis

FDVV

Pros

The fund's 0.15% expense ratio is competitive for actively managed large-value dividend portfolios.
With $10.3 billion in net assets, it offers sufficient scale for most individual investors.
Its top-10 holdings are diversified across technology, financials, and consumer staples.

Considerations

The 2.74% dividend yield trails many higher-income alternatives in the category.
A 7.28% holding in Nvidia indicates growth exposure not typical for dividend strategies.
The lack of sector weight data limits transparency regarding its underlying risk.

SCHD

Pros

The fund's 0.06% expense ratio is very low for a large-value equity dividend strategy.
With $112.8 billion in net assets, it provides substantial liquidity and operational stability.
Its 3.11% dividend yield exceeds the average for comparable dividend-focused exchange-traded funds.

Considerations

The heavy concentration in healthcare and energy sectors could limit diversification benefits.
A 4.89% position in Merck introduces significant company-specific risk to the portfolio.
The fund's top holdings lack the technology exposure found in broader market indices.

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About FDVV and SCHD

FDVV (FDVV)

The Fidelity Covington Trust High Dividend ETF (FDVV) is a large value fund designed to provide exposure to equities with higher-than-average dividend yields. With net assets of USD 10.34 billion and a modest expense ratio of 0.15%, it offers investors a relatively cost-efficient way to access a diversified portfolio of 109 holdings. Since its inception in September 2016, the fund has focused on companies that are often viewed as stable income generators. The current dividend yield stands at 2.74%, making it a potential component for those seeking regular income alongside capital appreciation. However, it is important to remember that values can rise and fall, and returns are not guaranteed. This fund suits investors interested in large-cap value strategies, though all investments carry risk and should be considered alongside personal financial goals.

SCHD (SCHD)

SCHD (Schwab US Dividend Equity ETF) is an exchange‑traded fund that aims to provide exposure to high-quality U.S. companies that have a history of paying dividends. Managed by Charles Schwab, the ETF screens for firms with stable earnings, reasonable payout ratios and consistent dividend records, concentrating on large‑cap names across a range of sectors. Investors often use SCHD for income and as a core holding to capture dividend yield with the diversification and liquidity of an ETF. It is designed to be a low‑cost, transparent vehicle, though dividends and share prices can fall and past performance is not a guarantee of future results. Suitable for investors seeking income and long‑term total return, it may not fit those focused solely on capital growth or who require guarantees. As with any investment, consider costs, tax treatment and how it fits your wider portfolio before investing.

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FDVV vs SCHD

Fund Snapshot