What are the differences in expense ratios between FDVV and VIG?

FDVV has an expense ratio of 0.15%, while VIG has a lower ratio at 0.04%. This means VIG is more cost-effective. The 0.11% difference may seem small, but over time it can impact returns. For long-term investors, choosing a fund with a lower expense ratio might help maximise net returns.

How does index tracking affect these ETFs?

Neither FDVV nor VIG provides details on the specific index they track, which reduces transparency for investors. Since index methodologies are unclear, comparing exposure differences becomes challenging. Investors should look beyond index tracking data and focus on holdings and yields when evaluating these funds.

Why do the top holdings of FDVV and VIG matter?

The top holdings show where the funds invest. FDVV focuses more on mega-cap tech stocks like NVDA and AAPL, while VIG includes dividend growers like LLY and XOM. Shared holdings include AAPL, MSFT, AVGO, and JPM, but FDVV has a stronger tech concentration, which may influence its performance and risk.

How do FDVV and VIG compare in terms of dividend yields?

FDVV offers a higher dividend yield of 2.74%, compared to VIG’s 1.51%. This makes FDVV more appealing for income-focused investors seeking regular payouts. However, VIG’s lower yield reflects its emphasis on dividend growth rather than immediate income. Yield alone should not drive investment decisions without considering overall strategy.

Which ETF suits long-term dividend growth investors?

VIG is often suited to investors seeking quality companies that increase dividends over time. With an expense ratio of 0.04% and large net assets of $110.8 billion, it prioritises stability. FDVV may also appeal, but its 0.15% fee and tech-heavy portfolio make it more income-oriented than growth-focused.

How might portfolio concentration affect FDVV?

FDVV’s concentration in mega-cap tech stocks like NVDA, AAPL, and MSFT may reduce traditional value-style benefits. While this could boost growth, it increases sensitivity to tech sector performance. Investors seeking diversified exposure should weigh this risk, particularly given its younger inception date and limited long-term track record.

Why might VIG be more resilient in market downturns?

VIG holds stable dividend growers like Johnson & Johnson and ExxonMobil, often seen as defensive stocks. Its focus on companies with consistent dividend growth and large net assets of $110.8 billion may provide stability. However, lower yields mean it is less ideal for those needing regular income compared to FDVV.

How do the asset sizes of FDVV and VIG influence liquidity?

VIG has $110.8 billion in net assets, supporting strong liquidity. FDVV has $10.3 billion, also substantial. Smaller size than VIG does not mean poor tradability. Both funds benefit from liquidity, though VIG’s scale reduces transaction costs and market impact risk during index adjustments.

Can fund size impact how these ETFs respond to market changes?

Larger funds like VIG may experience broader market impact when their underlying indices change. FDVV’s smaller $10.3 billion size means such changes affect it less. However, VIG’s liquidity advantage helps manage trades smoothly. Neither fund discloses index tracking details, making it difficult to predict full market responsiveness.

What should investors consider before choosing between FDVV and VIG?

Consider your goal: income or growth. FDVV offers a higher yield but comes with tech concentration and a shorter track record. VIG provides stability with low fees and long-term dividend growth. Also review expense ratios and net assets. Ensure alignment with your risk tolerance and investment timeline.

Are dividend distributions guaranteed for these ETFs?

No, dividend distributions are not guaranteed for either FDVV or VIG. While FDVV’s yield is higher and VIG’s fund focuses on consistent dividend growth, payments depend on underlying holdings' performance. Dividends can fluctuate or be suspended, especially in economic downturns or when specific companies change payout policies.

FDVV vs VIG

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

Explore FDVV (Fidelity Covington Trust High Dividend ETF) versus VIG (Vanguard Dividend Appreciation ETF). This comparison reviews fees, holdings, dividends and how each fund tracks its market. FDVV has a 0.15% expense ratio and 2.74% yield; VIG has 0.04% and 1.51%. Index tracked: not available for both. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FDVV

Metric

VIG

0.15%

Expense Ratio

0.04%

2.74%

Dividend Yield

1.51%

$10.34B

Net Assets

$110.76B

109

Holdings

343

Sep 12, 2016

Inception Date

Apr 21, 2006

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Index Tracked

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Large Value

Fund Category

Large Blend

VIG costs about $11.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FDVV	VIG
AAPLApple Inc.	6.83%	4.51%
MSFTMicrosoft Corporation	5.30%	4.68%
AVGOBroadcom Inc.	2.81%	4.35%
JPMJPMorgan Chase & Co.	2.77%	4.07%

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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

Fidelity's High Dividend ETF offers a higher 2.74% yield, appealing to income-focused investors.
An expense ratio of 0.15% remains competitive, providing reasonable cost access to a large fund.
The fund's substantial $10.3 billion net assets support liquidity, facilitating smoother trading executions.

Considerations

Portfolio concentration in mega-cap technology stocks may limit traditional defensive benefits of value.
Tracking index methodology is not available, reducing transparency on the fund's selection process.
The fund is younger than VIG, with less long-term track record since its 2016 inception.

VIG

Pros

Vanguard's low 0.04% expense ratio significantly reduces cost burdens for long-term dividend investors.
With $110.8 billion in net assets, it benefits from exceptional scale, liquidity and stability.
The fund's focus on dividend growers promotes quality and stability over mere high yield.

Considerations

The 1.51% dividend yield is lower, potentially unsuitable for investors seeking immediate income.
Index tracking methodology is not available, limiting full transparency on its dividend growth screens.
Like FDVV, its large size means any index changes can cause broader market impact.

About FDVV and VIG

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.

VIG (VIG)

The Vanguard Dividend Appreciation ETF (VIG) offers investors exposure to US large-cap companies with a history of increasing their dividends. It aims to track an index of stocks that have consistently raised payouts, focusing on financial discipline and steady growth rather than just high yields. With a very low expense ratio of 0.04% and net assets of approximately USD 110.76 billion, it is a cost-effective tool for building a diversified equity portfolio. The fund holds around 343 positions, providing broad market coverage. Investors should note that while dividend increases can signal company health, values can rise and fall, and returns are not guaranteed. Past performance does not ensure future results.

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FDVV vs VIG

Fund Snapshot