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Vanguard’s VIG and Fidelity’s FDVV Offer Opposite Paths to Dividend Income

The choice forces investors to weigh Vanguard’s low-cost, dividend-growth approach against Fidelity’s higher immediate yield that concentrates in tech and fewer stocks.

Overview

  • VIG follows a dividend-growth strategy that favors companies with long records of rising payouts and holds 338 stocks, giving broad diversification across technology, financials, and healthcare.
  • FDVV targets higher current income with 119 stocks and a roughly 29% technology tilt that leaves the fund more concentrated in a few large positions such as Nvidia, Apple, and Microsoft.
  • The two ETFs show a clear yield and cost split: FDVV’s trailing-12-month distribution yield is about 2.7% versus VIG’s about 1.5%, and VIG charges a much lower expense ratio at 0.04%.
  • Reported share prices used in the comparison were roughly $242 for VIG and $63 for FDVV, and those prices drive the snapshot trailing yields which can change with market moves or dividend adjustments.
  • Investors should match the funds to their goals because VIG’s low fee and wide spread of holdings favor long-term, cost-sensitive portfolios while FDVV suits income-seekers who accept higher sector and single-stock risk.