What are expense ratios in ETFs?

An expense ratio represents the annual fee charged by an ETF to cover its operational costs. These fees are deducted from the fund's assets, so they directly affect investor returns over time. A lower expense ratio typically allows investors to retain a larger share of their returns, but it is only one factor when evaluating investment options.

Why do ETFs distribute dividends?

ETFs distribute dividends when the underlying stocks they hold pay dividends. This income reflects the combined payouts from companies within the fund's portfolio. Investors receive these distributions periodically, which can supplement total returns without selling shares.

How do the expense ratios of FDVV and SPYD compare?

SPYD offers a lower expense ratio of 0.07%, compared to FDVV's 0.15%. Over the long term, this cost difference can result in SPYD delivering higher net returns for its investors, assuming all other factors are equal. However, it's worth noting that SPYD's top 10 holdings are more diversified than FDVV's.

Which ETF, FDVV or SPYD, is better for large-scale investment?

With $10.3 billion in net assets, FDVV provides greater liquidity and lower tracking error, which is beneficial for large-scale investments. In contrast, SPYD holds $7.4 billion in assets, which also ensures liquidity but is slightly less than FDVV. The choice between these two ETFs depends on factors like fees and portfolio composition.

What are the main holdings of FDVV and SPYD?

FDVV includes top holdings like NVDA (7.28%), AAPL (6.83%), and MSFT (5.30%). SPYD, meanwhile, features HPQ (1.80%), ACN (1.70%), and TGT (1.51%). Notably, there is no overlap between their top 10 holdings.

Are FDVV and SPYD both focused on high dividends?

Both FDVV and SPYD are focused on providing high dividends. FDVV's dividend yield is 2.74%, while SPYD's yield is 4.37%, making it more appealing to income-focused investors. The higher yield of SPYD can be advantageous for those looking for regular income from their investments.

What is the difference in sector exposure between FDVV and SPYD?

The sector weights for both FDVV and SPYD are not available, making it difficult to assess their exact sector exposures. However, FDVV's recent holdings suggest a potential concentration in technology, while SPYD's top holdings indicate a more diversified approach.

What are the risks associated with FDVV and SPYD?

Risks include transparency issues with index methodologies and sector weights not being disclosed for both ETFs. FDVV faces potential concentration risk in the technology sector, while SPYD could experience greater volatility due to its inclusion of mid-cap value stocks. Investors should consider these factors carefully.

Is there any notable difference in inception dates between FDVV and SPYD?

SPYD was established earlier, on 21 October 2015, compared to FDVV's inception on 12 September 2016. This means SPYD has a slightly longer operational history, which might provide additional context for assessing its performance.

What does a lower expense ratio mean for long-term returns?

A lower expense ratio generally leads to higher long-term returns, because less of your investment is eaten up by fees. In this case, SPYD's 0.07% expense ratio means you would retain more of the fund's performance over time.

What are the top holdings for FDVV and SPYD?

Top holdings for FDVV include NVDA (7.28%), AAPL (6.83%), MSFT (5.30%), DELL (3.92%), AVGO (2.81%), JPM (2.77%), KO (2.00%), GOOGL (1.93%), BAC (1.87%), and BBY (1.83%). For SPYD, they are HPQ (1.80%), ACN (1.70%), TGT (1.51%), MDT (1.48%), PFE (1.47%), T (1.45%), VZ (1.43%), CVX (1.43%), MOS (1.41%), and ARE (1.41%).

How do FDVV and SPYD differ in terms of liquidity?

FDVV has $10.3 billion in net assets, while SPYD has $7.4 billion. While both funds have ample liquidity, FDVV offers slightly more depth, which could be advantageous for large trades and overall investment flexibility.

FDVV vs SPYD

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

Compare FDVV and SPYD side by side. This page examines fees, holdings, dividends and how each fund tracks its market. FDVV is a Fidelity Covington Trust High Dividend ETF with a 0.15% expense ratio, while SPYD is a SPDR Portfolio S&P 500 High Dividend ETF with a 0.07% expense ratio. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FDVV

Metric

SPYD

0.15%

Expense Ratio

0.07%

2.74%

Dividend Yield

4.37%

$10.34B

Net Assets

$7.38B

109

Holdings

Sep 12, 2016

Inception Date

Oct 21, 2015

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Index Tracked

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Large Value

Fund Category

Mid-Cap Value

SPYD costs about $8.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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FDVV vs SCHD

Compare FDVV and SCHD ETFs on fees, holdings, dividends, and tracking. FDVV 0.15%, SCHD 0.06%. Yields 2.74% and 3.11%. Index tracking not available.

FDVV vs HDV

Compare FDVV and HDV high dividend ETFs. Review expense ratios, net assets, dividend yields, top holdings and inception dates for informed research.

Investment Analysis

FDVV

Pros

This ETF has a solid track record and a competitive expense ratio of 0.15%, ensuring cost-efficient dividend capture.
With $10.3 billion in net assets, it offers deep liquidity and minimal tracking error for large-scale investment.
Its dividend yield of 2.74% is attractive, providing consistent returns from quality large-cap value stocks.

Considerations

The fund's index methodology is not available, which may limit transparency regarding its underlying investment strategy.
Its sector weights are also not disclosed, potentially raising concerns about diversification across various sectors.
Recent holdings include major tech stocks, possibly leading to concentration risk in the technology sector.

SPYD

Pros

Lower expense ratio at 0.07% maximises net returns over time for investors focused on cost efficiency.
With $7.4 billion in net assets, it provides ample liquidity for trading, enhancing investor flexibility.
Dividend yield of 4.37% makes it appealing for income-focused investors seeking higher payouts.

Considerations

The index tracked is not available, which could hinder understanding of the fund's exact composition.
Despite high yield, sector weights are not disclosed, which may mask over-reliance on specific industries.
The inclusion of various mid-cap value stocks could introduce greater volatility compared to broader indices.

About FDVV and SPYD

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.

SPYD (SPYD)

The SPDR Portfolio S&P 500 High Dividend ETF aims to track an index of U.S. companies within the S&P 500 that have relatively higher dividend yields. Designed for income-focused investors, it provides exposure to established companies often considered value-oriented. With a low expense ratio of 0.07%, this fund is cost-efficient for those seeking consistent income generation. It holds a diversified portfolio of approximately 81 securities, balancing risk across various sectors. Launched in October 2015, the fund has grown to net assets of $7.38 billion. Its current dividend yield is 4.37%, making it an attractive option for investors prioritising regular cash flow. However, as with any investment, capital values can fluctuate, and past performance does not guarantee future results. Suitable for long-term investors comfortable with equity risk.

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FDVV vs SPYD

Fund Snapshot