FDVV vs. SCHD: The Tale of Two ETFs and the Foolish Chase for Dividends

FDVV vs. SCHD: A Tale of Dividends, Tech Fancies, and the Art of the Financial Pitch

Fidelity High Dividend ETF (FDVV 0.05%) and Schwab U.S. Dividend Equity ETF (SCHD 0.44%) both fancy themselves as the guardians of fat dividends, and both are willing to take your money to prove it. But, dear reader, what’s the real difference between these two investments? Why do they make such a fuss about themselves? I reckon it’s not because they’re offering anything truly spectacular, but more because they’re putting on quite the performance-like circus clowns with dollar bills in their pockets. Let’s untangle this mess, shall we?

Now, if you’re one of those folks looking for the straight story-no smoke, no mirrors-then let me put it in terms even the most bewildered investor can understand. These two ETFs cater to your desire for dividends, sure. But they go about it like a pair of drunks trying to solve a math problem-each with their own wild solution.

Snapshot (cost & size)

Metric	FDVV	SCHD
Issuer	Fidelity	Schwab
Expense ratio	0.16%	0.06%
1-yr return (as of Oct. 27, 2025)	10.9%	(4.2%)
Dividend yield	3.0%	3.8%
Beta	0.90	0.79
AUM	$7.1 billion	$70.2 billion

Beta, for the uninitiated, tells you just how wild and crazy the fund gets compared to the S&P 500. If a fund’s beta is 1, it’s a wild ride-faster than a jackrabbit on a hot day. Below 1, you’re riding in a more sedate buggy.

Now, before you start fantasizing about FDVV as the next great thing, consider this: SCHD is the cheaper option, charging a measly 0.06% for the privilege of letting it manage your cash. On the other hand, FDVV takes a little more-0.16%, which sounds like it’s not much until you realize it adds up faster than a runaway train.

Performance & Risk Comparison

Metric	FDVV	SCHD
Max drawdown (5 y)	(20.19%)	(16.86%)
Growth of $1,000 over 5 years	$2,419	$1,716

Now here’s where it gets spicy. Over the last five years, FDVV made you $2,419 out of your original $1,000. Not bad, I’ll admit. But if you’d been holding SCHD, you’d have had $1,716 in your pocket-still a profit, but not quite the windfall you might’ve hoped for. But let’s not get carried away: there’s always the catch. FDVV took a bit more of a tumble with its max drawdown of 20.19%. SCHD wasn’t immune to the market’s stormy weather either, but it didn’t lose its shirt the way FDVV did. So, if you’re the cautious type who doesn’t care to watch their portfolio take a nosedive off a cliff, SCHD might be the better ride.

What’s Inside?

SCHD, bless its heart, tracks the Dow Jones U.S. Dividend 100 Index. It holds 103 companies, mostly from the energy, healthcare, and consumer defensive sectors-places where you can count on people buying things like toothpaste and pharmaceuticals, no matter what kind of mess the world’s in.

Some of its top picks? AbbVie, Cisco, and Merck. It’s been at this game for over 14 years, and in the world of ETFs, that’s like being the elder statesman of the group.

FDVV, on the other hand, is much more tech-heavy. It’s got a soft spot for companies like NVIDIA, Microsoft, and Apple-those shiny, sleek gadgets that the masses drool over. It’s not interested in being stable and predictable like SCHD. No, no-FDVV is after the shiny things, and in doing so, it’s gambled a bit more on the tech sector, which can be as volatile as a poker table on a hot streak.

For all you folks with eyes glued to Silicon Valley, FDVV’s the one you’d want. But if you’ve had enough of tech and are in the mood for something with a bit more meat on its bones-something that doesn’t require you to squint at a screen all day-then maybe SCHD is your cup of tea.

The Foolish Take

Here’s the rub: over the last decade, FDVV has been churning out returns of 13% annually, while SCHD managed a respectable 11%. You can sit there all day and argue which is better, but I’d say both are doing fine considering they’re dealing in dividend stocks-those slow-moving beasts that tend to be steady but lack the flair of a high-speed chase.

Sure, they lagged behind the S&P 500, but let’s be real for a minute: the S&P 500 is not exactly the most honest benchmark to follow. If you were investing based on its returns alone, you’d be fooling yourself into thinking every fund is supposed to be a rocket ship. But these dividend funds are a bit more down to earth-just like that ol’ guy sitting on his porch, not worrying about the latest stock craze.

In the end, neither of these funds is the holy grail. They both have their perks and their drawbacks. If you’ve got enough of that tech stuff and need something a little less heart-thumping, SCHD might be the safer bet. If you’ve got a hunger for more tech, or just feel like living a little dangerously, FDVV could tickle your fancy.

Glossary

ETF (Exchange-Traded Fund): Think of it like a basket filled with all kinds of goodies. You buy a piece, and now you own a little slice of everything inside.
Dividend yield: How much cash you’re getting paid every year for owning a slice of this ETF.
Expense ratio: The cut the fund takes to cover its costs, and believe me, they’re always hungry.
Beta: Measures how wild the fund is. If it’s above 1, you’re in for a roller coaster.
AUM (Assets Under Management): The total amount of money the fund has from all its investors, like a big ol’ piggy bank.
Max drawdown: The biggest hit your investment takes when things go south.
Sector tilt: When a fund puts more of its eggs in one basket, like tech or healthcare.
Consumer Defensive: Things people buy no matter how bad the economy gets-like toothpaste and toilet paper.
Growth of $1,000: How much your investment grows over a period of time, provided it doesn’t vanish in the night.
Index (in ETF context): The template that the ETF tries to replicate, often a set of stocks or bonds that it follows to keep things neat.

So, there you have it. Pick wisely, but don’t be fooled into thinking you’re about to strike it rich. The stock market is a funny place, and it’ll give you more laughs than a barroom brawl if you let it. 🧐

2025-10-29 06:02