Fidelity High Dividend ETF: Performance and Strategic Insights

The Fidelity High Dividend ETF (FDVV) opens discussions on smart beta strategies. With a strong fund size and competitive expense ratios, investors consider this ETF's role amidst market variances. Notably, it boasts a solid dividend yield.

Date: 04-04-2025

AI Rating: 7

**Fidelity High Dividend ETF (FDVV) Analysis**: The Fidelity High Dividend ETF (FDVV) has made significant strides since its inception, showing growth both in assets and in performance over the past year. Currently, with assets exceeding $4.85 billion, it positions itself as a leading fund in the Style Box - All Cap Value category. Investors will pay keen attention to its expense ratio of 0.16%, which is considered competitive within similar products. Furthermore, FDVV has a trailing dividend yield of 3.05%, which is attractive for income-focused investors. This yield effectively positions FDVV to attract individuals looking for regular income as well as potential for capital appreciation. The fund's focus on large and mid-cap companies that are expected to sustain their dividends adds a layer of stability that many investors seek in uncertain market conditions. **Performance Metrics**: The ETF has shown a decent performance by adding approximately 0.44% year-to-date and exhibiting an impressive increase of 14.16% over the last year, indicating solid management and alignment with market expectations. **Risk Profile**: Its beta of 0.91 suggests it has lower volatility compared to the broader market, making it suitable for risk-averse investors. Coupled with a standard deviation of 15.02% over a three-year period, this ETF offers some mitigation of company-specific risks due to its diversified holdings of approximately 120 companies. The top contributors to FDVV include major players in the technology sector such as Apple Inc. (AAPL), Microsoft Corp (MSFT), and Nvidia Corp (NVDA), which account for a significant portion of the fund. With tech stocks generally performing well, FDVV could benefit from continued strength in this sector. Lastly, investors should assess alternative funds like the Capital Group Dividend Value ETF (CGDV) and iShares Core S&P U.S. Value ETF (IUSV), which may offer different strategies or cost structures to mitigate expenses and risks further. Overall, FDVV represents a solid option for investors looking to leverage high dividends in a smart beta framework. **Conclusion**: FDVV's combination of performance, risk management, and expense efficiency makes it an appealing candidate for investors aiming for yield in a potentially volatile market.

Stocks: AAPL MSFT NVDA