What is an expense ratio and how does it affect my investment?

An expense ratio represents the annual fee charged by a fund to manage your money, expressed as a percentage of assets. For FDVV (Fidelity Covington Trust High Dividend ETF), the expense ratio is 0.15%, while for VOO (S&P 500 Vanguard ETF), it is significantly lower at 0.03%. This means FDVV deducts 15 cents per $100 invested annually, whereas VOO deducts only 3 cents. Over time, lower fees can enhance net returns because less of your capital is used to cover administrative costs. Understanding these charges helps you compare the efficiency of similar investment vehicles and assess how much cost impacts your overall portfolio growth.

What is dividend yield and how is it calculated for ETFs?

Dividend yield is a financial ratio that shows how much a company or fund pays out in dividends each year relative to its share price. For ETFs, this reflects the income generated by the underlying holdings. FDVV reports a dividend yield of 2.74%, indicating a stronger focus on income distribution compared to VOO, which reports a yield of 1.03%. This difference suggests FDVV prioritises companies with higher payout habits, while VOO tracks broader market growth where many firms may reinvest profits rather than distribute them. Yield alone doesn't measure total return, but it is a key metric for income-focused investors seeking regular cash flow from their holdings.

What does 'net assets' tell me about an ETF's liquidity?

Net assets, often referred to as assets under management, indicate the total market value of the fund's holdings. Higher net assets generally suggest greater liquidity and trading volume. FDVV holds $10.3 billion in net assets, providing a solid base for trading. In contrast, VOO boasts net assets exceeding $1.08 trillion, which ensures extremely deep liquidity and minimal bid-ask spreads for traders. While FDVV's size is substantial, VOO's massive scale allows it to accommodate very large transactions without significantly impacting the price. Investors should consider net assets as a proxy for how easily they can enter or exit positions without facing large transaction costs or slippage.

How do the top holdings of FDVV and VOO differ?

Both FDVV and VOO share several top ten holdings, including Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Broadcom (AVGO), and Alphabet (GOOGL). However, FDVV's top ten includes financials like JPMorgan Chase (JPM) and Bank of America (BAC), alongside Dell (DELL) and Best Buy (BBY), reflecting its large value and dividend focus. VOO's list, however, includes broader growth and tech leaders like Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA). This overlap indicates both funds have exposure to major mega-cap stocks, but FDVV leans towards income-generating traditional sectors, while VOO mirrors the full spectrum of the S&P 500's composition.

What is the tracking difference between these two ETFs?

FDVV is designed to track a high dividend strategy, though the specific index methodology is not available. It aims to provide income by selecting securities with attractive dividend yields. VOO, on the other hand, is an S&P 500 ETF, seeking to replicate the performance of the large-cap US market index. Although the exact index data is not listed in the provided context, VOO's category of Large Blend confirms its broad market exposure. The key difference lies in their objectives: FDVV focuses on yield generation through a more selective process, while VOO prioritises broad market representation and capital appreciation through full index replication.

How do sector exposures compare between FDVV and VOO?

Specific sector weight data is not available for either FDVV or VOO in the provided context. This limitation means investors cannot directly compare industry diversification using precise percentages. However, FDVV's category as Large Value suggests it may overweight sectors like financials or consumer staples, which often pay higher dividends. VOO, being a S&P 500 tracker, would naturally mirror the index's sector balance, including significant exposure to technology and communication services. Without explicit sector weights, investors must rely on top holdings to infer broad exposure, recognising that the actual distribution across industries remains unverified for this comparison.

Which fund is suitable for income versus growth objectives?

FDVV is typically associated with income-focused investing due to its high dividend yield of 2.74% and its Large Value category, which often targets mature companies with stable payouts. VOO is generally linked to growth and broad market participation, with a lower yield of 1.03% reflecting the reinvestment strategies of many large-cap firms. Investors seeking regular cash flow might lean towards FDVV, while those prioritising long-term capital appreciation aligned with the overall US market might prefer VOO. Neither fund is inherently better; they serve different portfolio roles, with FDVV offering higher distribution rates and VOO providing lower-cost exposure to the entire S&P 500.

How does market volatility impact top holdings in these ETFs?

Both FDVV and VOO have significant exposure to tech giants like Nvidia, with FDVV holding 7.28% and VOO holding 8.08%. Consequently, both funds are sensitive to fluctuations in the technology sector. FDVV's concentration in top holdings might increase risk if these major positions experience volatility, despite its value tilt. VOO, tracking the broader S&P 500, also faces this risk but diversifies it across more companies. Investors should recognise that even income-focused ETFs like FDVV can exhibit high volatility due to the size of their largest holdings, mirroring the movements of the stocks that dominate market indices.

What are the historical contexts for FDVV and VOO inception?

VOO was launched in September 2010, providing investors with a low-cost way to track the S&P 500 in the years following the financial crisis. Its long history demonstrates a robust track record in replicating large-cap US market performance. FDVV, launched in September 2016, entered the market during a period of low interest rates, which heightened demand for income-generating assets. This six-year difference in inception dates means VOO has experienced more market cycles, including the 2020 pandemic volatility, potentially offering more historical data on tracking accuracy. FDVV's shorter history reflects a more recent strategy in the high-dividend ETF segment.

Can I rely on the dividend yield for predictable income?

While FDVV offers a 2.74% yield compared to VOO's 1.03%, dividend yields are not guaranteed to remain static. They fluctuate based on the share price and the companies' decisions to increase, decrease, or suspend payouts. FDVV's higher yield suggests a focus on income, but investors should understand that a high yield can sometimes signal underlying risks or a falling share price. VOO's lower yield is typical for growth-oriented broad market funds. For predictable income, one must look at the consistency of past distributions and the financial health of the underlying companies, rather than just the current yield figure, as yields can change with market conditions.

Where can I find more details on missing data like index tracking?

For both FDVV and VOO, specific index tracking methodologies and sector weight data are listed as not available in this comparison context. To obtain this detailed information, investors should consult the official fund providers' websites, such as Fidelity and Vanguard, or regulatory filings like prospectuses. These documents provide comprehensive breakdowns of how each fund selects its holdings, the exact benchmarks they follow, and their risk management strategies. Relying solely on summary comparison pages may leave gaps in understanding the precise mechanics of fund construction, so direct verification from primary sources is recommended for thorough due diligence.

Is this comparison page financial advice?

No, this content is strictly educational and does not constitute financial advice. The comparison of FDVV and VOO is based on specific data points such as expense ratios, yields, and holdings from Yahoo Finance as of September 2026. It aims to help beginners understand how to interpret ETF metrics, such as the impact of a 0.15% versus 0.03% expense ratio or a 2.74% versus 1.03% dividend yield. Investing involves risk, and individual circumstances vary. Always conduct your own research or consult with a qualified financial advisor before making investment decisions based on this factual overview.

FDVV vs VOO

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 VOO (S&P 500 Vanguard ETF). This page reviews fees, holdings, dividends and how each fund tracks its market. FDVV has a 0.15% expense ratio, while VOO has a 0.03% expense ratio. FDVV offers a 2.74% dividend yield, compared to VOO's 1.03%. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FDVV

Metric

VOO

0.15%

Expense Ratio

0.03%

2.74%

Dividend Yield

1.03%

$10.34B

Net Assets

$1.08T

109

Holdings

516

Sep 12, 2016

Inception Date

Sep 7, 2010

–

Index Tracked

–

Large Value

Fund Category

Large Blend

VOO costs about $12.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FDVV	VOO
NVDANVIDIA Corporation	7.28%	8.08%
AAPLApple Inc.	6.83%	7.03%
MSFTMicrosoft Corporation	5.30%	5.70%
AVGOBroadcom Inc.	2.81%	2.65%
GOOGLAlphabet Inc.	1.93%	3.01%

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FDVV vs VYM

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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

The fund's expense ratio of 0.15 per cent remains competitive for a high dividend strategy.
Net assets of 10.3 billion dollars provide a solid base for liquidity and trading volume.
A dividend yield of 2.74 per cent appeals to investors seeking regular income generation.

Considerations

The top holdings index methodology is not available which creates uncertainty regarding its tracking approach.
Sector weights data is not available limiting the ability to assess specific industry exposure accurately.
Top ten holdings concentration might increase risk if major positions like Nvidia experience volatility.

VOO

Pros

The expense ratio of 0.03 per cent is exceptionally low enhancing long term return potential.
Net assets exceeding one trillion dollars ensure deep liquidity and minimal bid ask spreads for traders.
Its inception in 2010 demonstrates a robust history of effectively tracking a major broad market index.

Considerations

A dividend yield of 1.03 per cent is lower than many income focused competitors in the market.
The index methodology is not available although it broadly tracks the S&P 500 large cap universe.
Sector weights data is not available preventing immediate verification of diversification across different economic industries.

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About FDVV and VOO

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.

VOO (VOO)

VOO is Vanguard’s exchange-traded fund designed to track the S&P 500 Index, offering broad exposure to about 500 of the largest publicly traded US companies. It aims to replicate the index’s performance minus fees by holding the same stocks in similar proportions, making it a straightforward, passive way to access large‑cap US equities. Investors commonly use VOO as a core holding for long‑term growth or as a simple building block in a diversified portfolio. It typically offers high liquidity and regular dividend distributions from underlying companies. As with any equity investment, VOO’s value can rise or fall with the market, and past performance is not a guide to future returns. Fees, trading costs and potential tracking error reduce returns slightly. This information is general and educational only and not personalised financial advice — consider your own circumstances or speak to a qualified adviser before investing.

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FDVV vs VOO

Fund Snapshot