Fidelity High Dividend ETF (FDVV)
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FDVV: Big Annual Reconstitution Changes For This Top-Performing Dividend ETF
Fidelity High Dividend ETF's Index reconstituted effective Monday, resulting in substantial sector allocation changes and an improved dividend yield, now expected to be 3.22%. Despite the changes, FDVV's fundamentals remain solid. The portfolio's expected earnings growth rate is in the high-single-digits and FDVV's forward P/E ratio dropped from 18.00x to 16.68x. There was a slight deterioration in quality, but that's mainly due to increased exposure to Financials sector stocks, where metrics like ROA tend to be lower.
FDVV Vs. SCHD: One Is Better For Income & One Is Better For Growth
Fidelity High Dividend ETF (FDVV) & Schwab US Dividend Equity ETF (SCHD) are both attractive choices for investors seeking a diverse portfolio of dividend stocks. FDVV has a meaningful technology exposure, which can help the fund partake in strong ted-led bull markets. AI is a catalyst for continued momentum and FDVV is aligned to benefit. SCHD lacks the same weight to tech but has provided a superior level of dividend growth over the last decade. The dividend growth rate outpaced FDVV by a wide margin.
Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
A smart beta exchange traded fund, the Fidelity High Dividend ETF (FDVV) debuted on 09/12/2016, and offers broad exposure to the Style Box - All Cap Value category of the market.
FDVV: This ETF Is Not What I Expected
FDVV's dividend yield has declined due to its significant holdings in low-dividend, big tech companies, making it unsuitable for income-focused investors. The fund's dividend is volatile and lacks consistent growth, earning a C rating in the dividend category from SA Quant. FDVV's strategy seems unfocused, with many of its top holdings having lower-than-market dividend yields, contributing to a lower overall yield.
Dividend ETFs Can Add Value to Portfolios
Dividend ETFs may be a good option for investors who want to generate income without sacrificing the potential for growth. Additionally, a dividend ETF may be an alternative solution for investors currently in money market funds or sitting on the sidelines in cash.
FDVV Vs. The Big Dividend ETFs, Why I Rate It A Hold For Now
FDVV's heavy technology sector allocation has boosted returns over the last five years, providing dividend investors better total returns than DGRO, VYM or SCHD. Unfortunately, while FDVV does offer strong price performance, it has struggled to consistently grow its dividend and its distributions actually went down -7% in 2024. Even with a strong starting 2.95% dividend yield, investors are better served choosing blue-chips like DGRO, VYM, or SCHD and adding growth exposure from a fund like SCHG or VUG.
FDVV: Good, But SCHD Plus Tech Is Better
FDVV's recent outperformance is largely due to its holdings in NVDA and AVGO. It is difficult to predict if FDVV can continue selecting stocks like these with its screening strategy. FDVV's strategy attempts to capture both capital appreciation and dividends under one umbrella, which isn't necessarily the right move. The fund has underperformed the S&P 500 with higher volatility and lower maximum drawdowns.
Looking for Steady Income for Clients? Watch These 3 Income ETFs
Have clients nearing retirement? Nearing retirement yourself?
Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
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.
FDVV: Why Its 2.76% Dividend Yield Appeals To Investors With Income And Capital Appreciation Goals
FDVV is a unique large-cap blend ETF that blends low-yielding, high-growth, high P/E stocks like Nvidia and Apple with attractively priced dividend stocks like Philip Morris and Exxon Mobil. FDVV's 2.76% expected dividend yield is a nice compromise between high-yielding funds like SCHD and lower-yielding ones like VIG and DGRW. Its ER is also reasonable at 0.15%. Performance, especially since markets bottomed in March 2020, has been excellent. FDVV has topped most of its peers, including SCHD, VYM, VIG, and DGRW, after somewhat disappointing returns from 2016-2020.
Dividend Investing: FDVV Has An Edge Over CGDV
Fidelity High Dividend ETF (FDVV) offers market-beating returns with lower risk through a diversified portfolio of high-quality dividend-paying value and growth stocks. FDVV's smart-beta strategy and exposure to growth and values stocks enhance its performance in both bull and bear markets. CGDV's strategy of holding stakes in fundamentally sound value and growth stocks also make it an attractive option.
What Does A High Dividend ETF Own?
Following the Fed's aggressive rate cut in mid-September, we believe many advisors are rethinking how they are providing stable income for client portfolios. High-dividend-yielding equity investments are likely to get closer looks in the fourth quarter after strong recent performance.
