Wealthy PotFDVV vs SCHD: Two Ways to Build a Dividend Fund
FDVV and SCHD are both dividend ETFs with roughly a hundred holdings, and both are popular with income investors. They are built on very different rules. SCHD, Schwab's U.S. Dividend Equity ETF, follows the Dow Jones U.S. Dividend 100 Index, which demands a long dividend record and financial strength. FDVV, Fidelity's High Dividend ETF, follows an index Fidelity designed itself. SCHD also costs less: 0.06% against 0.15%.
The Short Answer
- SCHD requires at least 10 consecutive years of dividends and ranks stocks on financial strength and yield.
- FDVV follows the Fidelity High Dividend Index, a proprietary rules-based index, and holds some non-U.S. stocks (about 6% at the end of August 2026).
- SCHD is cheaper: 0.06% against 0.15%.
- SCHD yielded more on the latest 30-day SEC yield: 3.27% against 2.63%.
FDVV vs SCHD Side by Side
| Feature | FDVV | SCHD |
|---|---|---|
| Full name | Fidelity High Dividend ETF | Schwab U.S. Dividend Equity ETF |
| Index | Fidelity High Dividend Index | Dow Jones U.S. Dividend 100 Index |
| Expense ratio | 0.15% | 0.06% |
| Holdings | 109 | 102 |
| 30-day SEC yield | 2.63% (Sep 21, 2026) | 3.27% (Sep 21, 2026) |
| Share in U.S. stocks | 93.66% (Aug 31, 2026) | U.S. index |
| Inception | September 12, 2016 | October 20, 2011 |
How Each Picks Its Stocks
SCHD's index, run by S&P Dow Jones Indices, starts with U.S. stocks that have paid dividends for at least 10 consecutive years, then ranks them on a composite of cash flow to total debt, return on equity, dividend yield and five-year dividend growth. The result is a list of established dividend payers selected for financial quality, not just the highest yield.
FDVV's index is Fidelity's own. Its portfolio is mostly, but not entirely, American: 93.66% in U.S. stocks at the end of August 2026, with Nvidia, Apple and Microsoft as its three largest positions. SCHD's screens, which lean on cash flow, debt and dividend history, produce a different list. If you want to see the overlap for yourself, compare the two funds' top holdings on their issuer pages.
Yield and Cost
On the latest 30-day SEC yield, SCHD paid 3.27% and FDVV 2.63%. SEC yield is a standardized measure based on the past 30 days of income, so it moves with prices and dividends; compare the two on the same date. SCHD also charges less, 0.06% against 0.15%, a difference of $9 a year on $10,000.
Neither number is a promise. Dividend yields change as prices move and as companies raise or cut payouts. Judge a dividend fund on how it picks stocks and what you want it to do in your portfolio, not on one week's yield.
Which One Fits You
- Choose SCHD for a low-cost, quality-screened U.S. dividend fund with a transparent, published index.
- Choose FDVV if you want Fidelity's approach, including a small international slice.
- Holding both adds a second recipe rather than doubling one, but check the overlap and remember you pay the higher fee on the FDVV portion.
FAQ
Is SCHD or FDVV cheaper?
SCHD, at 0.06% a year. FDVV's expense ratio is 0.15%.
Which pays a higher dividend yield?
On the 30-day SEC yield as of September 21, 2026, SCHD (3.27%) was ahead of FDVV (2.63%). Yields change often.
Does FDVV hold international stocks?
A small share. Fidelity reported 93.66% of the fund in U.S. stocks as of August 31, 2026.
What index does SCHD track?
The Dow Jones U.S. Dividend 100 Index, which requires 10 consecutive years of dividends and screens for financial strength.
Should I own FDVV and SCHD together?
You can, since they use different rules, but check how much they overlap and whether the extra fee on FDVV is worth it to you.
This article is for general information and is not investment advice. Fund figures were taken from Fidelity's and Schwab's published fund pages on 2026-09-23 and can change; yields are as of the dates shown. Confirm current figures before you invest.