FDVV defines itself as a smart beta ETF with a quality-dividend growth DNA. A characteristic that in the past brought it great disappointments: underperformance. But today gives it strong momentum, enviable by other dividend-oriented ETFs.
Fidelity High Dividend ETF has outperformed SCHD and DGRO in total returns the last five years, but its significant outperformance is recent amid AI hype. FDVV's focus on high dividend yield and sector tilts, but its 15% weight on dividend growth results in inconsistent annual payout growth lagging both SCHD and DGRO. FDVV offers meaningful diversification when paired with SCHD, but not DGRO, if its dividend metrics can stabilize.
Launched on 09/12/2016, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
Fidelity High Dividend ETF offers a balanced blend of high yield and dividend growth, with a 3.1% yield and strong capital appreciation potential. FDVV's portfolio is skewed toward large-cap stocks, including NVDA, MSFT, and AAPL, providing both stability and growth exposure. FDVV has outperformed SCHD and major indices in total returns over the past five years, aided by its tech exposure and low turnover.
Generating passive income is a way to make your money work for you, with little effort.
Investors look to dividends for current income, bolstering portfolios and finances in times of uncertainty. Plenty of ETFs can provide that current income in efficient, helpful ETF wrappers, but perhaps one of the areas where those funds set themselves apart is in the performance potential they can provide, too.
FDVV's strong performance is driven by heavy tech exposure, not a superior dividend strategy, resulting in a lower yield than expected for a high-dividend ETF. The fund's sector-tilting methodology still leaves it with a 26% tech allocation, compromising its ability to deliver both high income and growth. FDVV neither excels at capital appreciation nor dividend yield, making it an inadequate compromise versus constructing your own growth/income ETF mix.
Investors have been concerned about market volatility over the past few weeks, and it is natural to be worried.
The default exchange-traded fund for most investors is the SPDR S&P 500 ETF Trust (NYSEARCA:SPY ) , which tracks the S&P 500.
Could now be the time to add dividends? With market volatility continuing to loom on the horizon, now may be a good time to consider a dividend strategy.
Launched on 09/12/2016, the Fidelity High Dividend ETF (FDVV) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
I rate Fidelity High Dividend ETF a 'Buy' due to its strong 10-year total return of 193% and robust dividend growth. FDVV's portfolio blends high-dividend growth and value stocks, limiting downside risk and capitalizing on tech and AI sector rallies. The ETF boasts a low expense ratio, high liquidity, and attractive valuations compared to the S&P 500.