Fidelity® Dividend ETF for Rising Rates (FDRR)

Overview

The Fidelityu00ae Dividend ETF for Rising Rates (FDRR) is designed to invest in U.S. equity securities of companies that pay or are expected to pay dividends and are believed to have the potential to benefit from a rising interest rate environment. The ETF focuses on companies with characteristics that may offer attractive dividend yields and potential for dividend growth, aiming for capital appreciation and income generation.

Reputation and Reliability

Fidelity Investments is a globally recognized financial services firm with a long-standing reputation for reliability and a broad range of investment products and services. They are a leading provider of ETFs and mutual funds, known for their robust research and operational capabilities.

Management Expertise

FDRR is managed by a team of experienced portfolio managers at Fidelity, leveraging the firm's extensive research infrastructure and expertise in equity analysis and dividend investing. Specific manager details are available in the fund's prospectus.

Goal

The primary investment goal of FDRR is to seek capital appreciation and current income.

Investment Approach and Strategy

Strategy: FDRR is an actively managed ETF that does not track a specific index. Its strategy focuses on selecting U.S. equity securities of companies believed to have the potential to benefit from a rising interest rate environment and that pay or are expected to pay dividends.

Composition The ETF primarily holds stocks of U.S. companies, with a focus on those that exhibit strong dividend characteristics and resilience in periods of rising interest rates. The specific sector allocation can vary based on the portfolio managers' assessment of market opportunities.

Market Share: Information on the specific market share of Fidelityu00ae Dividend ETF for Rising Rates within its niche is not readily available in public data for direct comparison without proprietary market analysis tools. However, as an actively managed dividend-focused ETF targeting a specific market condition, its market share is likely moderate.

Total Net Assets (AUM): 5731000000

Key Competitors

• WisdomTree U.S. Quality Dividend Growth Fund (DGRW)
• Vanguard Dividend Appreciation ETF (VIG)
• Schwab U.S. Dividend Equity ETF (SCHD)

Competitive Landscape

The dividend equity ETF landscape is highly competitive, with many products offering exposure to dividend-paying stocks. FDRR competes by focusing on a specific strategy u2013 dividend stocks that may perform well in a rising rate environment. Its active management offers potential for outperformance but also carries manager risk. Competitors like VIG and SCHD are passive index-tracking ETFs with lower expense ratios, appealing to a broader segment of the market.

Historical Performance: The ETF's performance data needs to be accessed from real-time financial data providers for accurate, up-to-date figures. As of recent general knowledge, FDRR has shown competitive performance within its segment, but specific year-over-year returns, 3-year, and 5-year annualized returns should be verified from reliable financial sources.

Benchmark Comparison: As an actively managed ETF, FDRR does not strictly adhere to a benchmark index. Its performance is often evaluated against broader dividend-focused equity indices or relevant market segments, with the aim of outperforming or providing similar risk-adjusted returns.

Expense Ratio: 0.29

Average Trading Volume

The ETF exhibits a generally good average trading volume, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting healthy market depth and ease of trading for the ETF.

Market Environment Factors

FDRR is influenced by interest rate policies of the Federal Reserve, inflation expectations, and overall economic growth prospects. Sectors that tend to perform well in rising rate environments, such as financials and energy, can impact its holdings. Global economic conditions and geopolitical events also play a role.

Growth Trajectory

FDRR's growth trajectory is tied to the success of its active management strategy in identifying and holding dividend-paying stocks that can thrive in a rising interest rate environment. Changes in strategy and holdings are driven by the portfolio managers' continuous market analysis and outlook.

Competitive Edge

FDRR's competitive edge lies in its active management focused on the specific theme of dividend stocks that can perform well in a rising rate environment. This niche strategy, backed by Fidelity's research capabilities, aims to identify companies with both dividend resilience and potential for capital appreciation under particular economic conditions, distinguishing it from passive dividend ETFs.

Volatility

The ETF's volatility is influenced by the equity markets and the specific sectors and companies it invests in. As an equity fund, it is subject to market risk, but its focus on dividend-paying companies might offer some degree of defensiveness.

Market Risk

FDRR is subject to market risk, including the risk that stock prices will decline. Specific risks include interest rate risk (as the fund is designed for rising rates, adverse rate movements could impact performance), dividend risk (companies may reduce or eliminate dividends), and equity risk.

Ideal Investor Profile

The ideal investor for FDRR is one who seeks dividend income and capital appreciation, believes that rising interest rates are likely, and is comfortable with active management and the inherent risks of equity investing. Investors should also have a medium to long-term investment horizon.

Market Risk

FDRR is best suited for long-term investors who want to enhance their portfolio's income generation potential and are looking for exposure to dividend-paying stocks that may be more resilient or even benefit from an environment of increasing interest rates.

The Fidelityu00ae Dividend ETF for Rising Rates (FDRR) is an actively managed ETF focused on U.S. dividend-paying stocks poised to perform well in a rising interest rate environment. It seeks both capital appreciation and current income, leveraging Fidelity's extensive research. While competing in a crowded dividend ETF space, its niche strategy offers a distinct approach. Investors should consider its active management and associated risks alongside its potential to navigate changing rate conditions.

Data Sources:

• Fidelity Investments Official Website
• Financial Data Aggregators (e.g., Morningstar, Yahoo Finance)

Disclaimers:

This information is for illustrative purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. ETF data, including AUM, expense ratios, and historical performance, can change frequently. Market share data is an estimation based on available public information.