What is the primary difference in the cost structure of these two funds?

The Fidelity Covington Trust High Dividend ETF charges an expense ratio of 0.15%, while the Vanguard High Dividend Yield ETF charges only 0.04%. This creates a 0.11 percentage point difference in annual costs. Expense ratios are deducted from a fund's assets, meaning lower costs can improve net returns over time, assuming all other factors remain equal. For a large investment portfolio, this difference can accumulate significantly, affecting long-term growth potential and the total value of the holdings.

How do expense ratios impact long-term investment returns?

Expense ratios reduce the net return an investor receives by deducting management fees from the fund's assets. For example, the 0.04% fee on Vanguard High Dividend Yield ETF is substantially lower than the 0.15% fee on Fidelity Covington Trust High Dividend ETF. Over decades, this cost difference can compound, meaning the lower-cost fund retains more of its gross returns. Beginners should view fees as a guaranteed drag on performance, making cost efficiency a key metric in ETF selection.

Which fund offers a higher dividend yield according to the data?

The Fidelity Covington Trust High Dividend ETF reports a dividend yield of 2.74%, whereas the Vanguard High Dividend Yield ETF reports 2.31%. This indicates that Fund A currently generates more income per dollar invested than Fund B. However, higher yield does not always equal better performance, as it may reflect market perceptions of risk or sustainability. Investors should consider the composition of the portfolio to understand why one fund yields more than the other in the current market environment.

How does the track record of each fund compare in terms of age?

Vanguard High Dividend Yield ETF was established on November 10, 2006, providing a long history of operations. In contrast, Fidelity Covington Trust High Dividend ETF has an inception date of September 12, 2016, making it relatively newer. A longer track record can offer more data on how the fund behaves during different market cycles. Newer funds may still be establishing their operational efficiency and tracking accuracy, so investors often weigh the stability of a longer history against the specific features of newer products.

What are the shared holdings between the top ten positions of each fund?

Both funds include Broadcom Inc. (AVGO), JPMorgan Chase & Co. (JPM), and Bank of America Corp. (BAC) within their top ten holdings. Despite both targeting dividend strategies, the overlap in top positions is limited to these three companies. The remaining top holdings differ significantly, with Fund A holding tech names such as Nvidia and Apple, while Fund B holds energy and healthcare firms like Exxon Mobil and Johnson & Johnson. This demonstrates distinct portfolio construction approaches within the same asset class.

How do the asset bases of the two funds compare?

Vanguard High Dividend Yield ETF manages approximately $80.9 billion in net assets, compared to $10.3 billion for Fidelity Covington Trust High Dividend ETF. A larger asset base typically suggests higher liquidity and easier trading for investors, potentially leading to narrower bid-ask spreads. While the smaller fund still provides sufficient scale for most retail investors, the significant difference in size may influence institutional interest and the depth of the underlying market for the ETF shares themselves.

What style drift concerns might investors note with Fund A?

The Fidelity Covington Trust High Dividend ETF holds Nvidia, Apple, and Microsoft in its top positions, which is noted as exceeding typical high-dividend screens. This suggests potential style drift towards growth or mega-cap technology, which may not align with a strict high-dividend value mandate. In contrast, Vanguard's holdings appear more aligned with traditional dividend payers in sectors like energy and financials. Investors seeking pure dividend value exposure should scrutinise the holdings to ensure they match their strategic asset allocation goals and risk tolerance.

Is the index methodology available for transparency in these ETFs?

According to the provided ground truth data, the specific index tracked by both Fidelity Covington Trust High Dividend ETF and Vanguard High Dividend Yield ETF is not available. Without transparent index methodology details, it is difficult to assess exactly how constituents are selected or how the replication strategy operates. Investors usually rely on these disclosures to verify that the fund adheres to its stated objective. The absence of this information requires careful examination of actual holdings to infer the investment process.

What does sector exposure look like for these funds based on the data?

The ground truth data indicates that sector weights for both Fidelity Covington Trust High Dividend ETF and Vanguard High Dividend Yield ETF are not available. Without specific sector breakdowns, investors cannot directly compare their industry diversification using this dataset alone. Beginners should note that sector exposure is a critical risk factor in portfolio management. To form a complete view, one would need to consult additional sources or analyse the top holdings provided to estimate sector concentration, recognising the limitations of this specific data.

What is the single-stock concentration risk in Fund B?

The Vanguard High Dividend Yield ETF lists Broadcom Inc. (AVGO) as its top holding at a weight of 6.93%. This level of concentration in a single stock can introduce specific idiosyncratic risk, as the fund's performance may be disproportionately affected by events impacting this company. While this is a top holding in the context of a dividend fund, investors should weigh this concentration against the fund's broader diversification. Comparing this to the highest holding in Fund A helps contextualise concentration levels.

FDVV vs VYM

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 VYM (Vanguard High Dividend Yield ETF). This page examines fees, holdings, dividends, and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FDVV

Metric

VYM

0.15%

Expense Ratio

0.04%

2.74%

Dividend Yield

2.31%

$10.34B

Net Assets

$80.88B

109

Holdings

613

Sep 12, 2016

Inception Date

Nov 10, 2006

–

Index Tracked

–

Large Value

Fund Category

Large Value

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

Shared Top Holdings

Holding	FDVV	VYM
AVGOBroadcom Inc.	2.81%	6.93%
JPMJPMorgan Chase & Co.	2.77%	3.83%
BACBank of America Corporation	1.87%	1.65%

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FDVV vs SCHD

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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.

FDVV vs VIG

Compare FDVV and VIG ETFs on expense ratios, dividend yields and holdings. Review fund structures and market tracking data for informed analysis.

Investment Analysis

FDVV

Pros

The fund offers a moderate expense ratio of 0.15 percent for a managed large-value dividend strategy.
Net assets of $10.3 billion provide sufficient scale and liquidity for most investors.
The 2.74 percent dividend yield is notably higher than many comparable broad-value equity funds.

Considerations

Top holdings including Nvidia, Apple and Microsoft exceed typical high-dividend screens, suggesting style drift.
No published index methodology is available, making transparent tracking and replication quality harder to assess.
The 2016 inception date is shorter than that of longer-established high-dividend ETFs.

VYM

Pros

The 0.04 percent expense ratio makes VYM one of the cheapest high-dividend equity ETFs available.
With $80.9 billion in net assets, the fund offers deep liquidity and minimal trading-spread concerns.
Its 2006 inception date gives it a long, established track record for passive large-cap value exposure.

Considerations

The 2.31 percent dividend yield trails that of several competing high-dividend ETFs.
A top holding weight of 6.93 percent in Broadcom introduces noticeable single-stock concentration.
Although not specified in the data, the index methodology is not available, limiting transparency on constituent selection.

About FDVV and VYM

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.

VYM (VYM)

The Vanguard High Dividend Yield ETF is designed to provide investors with exposure to a broad range of high-dividend-paying stocks listed in the US. With a low expense ratio of 0.04% and over 600 holdings, the fund aims to deliver income while maintaining diversification. Its dividend yield sits at 2.31%, reflecting its focus on companies with strong payout traditions. This ETF suits those seeking a steady income stream as part of a long-term strategy, though values can rise and fall. Returns are not guaranteed. Always consider your personal circumstances before investing.

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FDVV vs VYM

Fund Snapshot