The Fidelity High Dividend ETF (FDVV) made its debut on 09/12/2016, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Value category of the market.
Advisors and investors looking to add potential diversification to their dividend allocations should consider the Fidelity High Dividend ETF (FDVV). The fund's methodology includes multiple screens for dividend metrics when selecting securities.
FDVV should have some appeal for growth investors because of the fund's balance and tech holdings. This Fidelity fund is unlikely to offer consistent or substantive income. FDVV should underperform as the economy likely continues to weaken, since the fund is overweight cyclical sectors like the industrial and real estate sector.
Fidelity's High Dividend ETF strikes a balance between income and price growth. This makes the fund versatile and can be utilized by investors both young or old. FDVV has outperformed many peer dividend ETFs since its inception, offering a modest 3% dividend yield but strong total returns. The holdings maintain a majority of focus on tech companies, unlike most of the dividend ETF peers out there.
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund launched on 09/12/2016.
Dividend investing is a successful strategy for investors of all sizes and sectors, providing long-term growth and recurring returns. Fidelity High Dividend ETF focuses on large dividend-paying companies, including some of the world's largest tech companies. FDVV's index methodology, sector weightings, and dividend growth rate make it a viable option for income-focused investors seeking a core holding in their portfolio.
Fidelity High Dividend ETF has underperformed the total return of the S&P 500 since inception.
Fidelity High Dividend ETF continues to perform well since my initial upgrade one year ago. The addition of low-yielding stocks like Apple and Nvidia contributes to the balanced approach I seek. The FDVV ETF's expected yield is steadily declining, now at 2.88%. However, I view this positively, as I'm careful not to sacrifice too much capital gain for only marginally higher income. Alternatives like SCHD used to feature sufficient earnings growth several years ago, which is how it managed to keep pace with SPY and deliver double-digit earnings growth. Unfortunately, that's changed.
Dividend investing provides the potential for income in choppy and uncertain markets. Investors looking to increase their allocations to companies paying and growing their dividends may want to consider the Fidelity High Dividend ETF (FDVV).
The Fidelity High Dividend ETF (FDVV) was launched on 09/12/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.