Looking for a Dividend ETF to Buy? Choose Between This High Yield and High Dividend Growth ETF
Vanguard Dividend Appreciation and Fidelity High Dividend are among the two top dividend ETFs to buy. Here's how to decide which one to pick.
Looking for a Dividend ETF to Buy? Choose Between This High Yield and High Dividend Growth ETF
Overview
Investors choosing between Fidelity High Dividend ETF (NYSEMKT:FDVV) and Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) must weigh the Fidelity fund's higher yield against the Vanguard fund's lower costs and broader diversification.
Both funds target dividend-paying equities but follow different philosophies. While Fidelity High Dividend ETF seeks high immediate income through sector overweighting, Vanguard Dividend Appreciation ETF focuses on companies with a history of increasing dividends. This distinction creates meaningful differences in sector exposure, total return potential, and portfolio concentration for income-seeking investors.
Details
Cost-conscious investors may prefer the Vanguard fund, which features a lean 0.04% expense ratio. However, the Fidelity fund offers a more robust income profile, with a 2.80% trailing-12-month distribution yield.
Source
Originally published at www.fool.com.
