Fidelity® High Dividend ETF (FDVV)

Overview

Fidelityu00ae High Dividend ETF (FDVV) seeks to provide investment results that correspond to the performance of the Fidelity High Dividend Index. It focuses on high-dividend-yielding stocks in the US market, employing a rules-based approach to stock selection and weighting.

Reputation and Reliability

Fidelity is a well-established and reputable financial services company with a long history of managing investment products.

Management Expertise

Fidelity has a large and experienced team of investment professionals managing its ETFs and mutual funds.

Goal

Seeks to provide investment results that correspond to the performance of the Fidelity High Dividend Index.

Investment Approach and Strategy

Strategy: Aims to track the Fidelity High Dividend Index, a rules-based, market-cap-weighted index designed to reflect the performance of stocks of large and mid-capitalization U.S. dividend-paying companies that are expected to continue to pay dividends.

Composition Primarily holds dividend-paying stocks of large and mid-capitalization U.S. companies.

Market Share: FDVV's market share within the high dividend ETF space is notable, but it competes with several established players.

Total Net Assets (AUM): 1350000000

Key Competitors

• Vanguard High Dividend Yield ETF (VYM)
• Schwab U.S. Dividend Equity ETF (SCHD)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The high dividend ETF market is competitive with several well-established ETFs. FDVV benefits from Fidelity's brand recognition, but faces challenges in gaining market share against ETFs with lower expense ratios and larger AUM. Advantages include its unique index and weighting methodology. Disadvantages include higher expense ratio compared to other competitors.

Historical Performance: Historical performance can be gathered from Fidelity or other financial data providers. [0.0985, 0.2589, 0.1796, 0.1354, 0.0626]

Benchmark Comparison: Performance is compared to the Fidelity High Dividend Index. Positive alpha indicates outperformance, while negative alpha indicates underperformance. [0.0012,-0.0034,0.0056,-0.0011,0.0001]

Expense Ratio: 0.29

Average Trading Volume

FDVV generally has a moderate average trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for FDVV is typically tight, reflecting the ETF's liquidity and demand.

Market Environment Factors

FDVV's performance is influenced by interest rates, economic growth, and the performance of the dividend-paying stocks in the U.S. market.

Growth Trajectory

Growth depends on Fidelity's ability to market the ETF effectively and its index's ability to capture high-dividend-yielding stocks. Changes to strategy are infrequent, with holdings adjusting based on the index's rules.

Competitive Edge

FDVV benefits from Fidelity's strong brand and distribution network. Its competitive edge lies in its specific dividend-weighted methodology, which may offer a slightly different risk/return profile compared to competitors. Fidelity's extensive research capabilities also provide an advantage in selecting and monitoring the underlying securities. However, a higher expense ratio might be a drawback when compared to cheaper alternatives. The combination of a well-known brand, a unique index, and Fidelity's research expertise offers a competitive edge in the high-dividend ETF landscape.

Volatility

FDVV's volatility is generally in line with other high-dividend equity ETFs.

Market Risk

FDVV is subject to market risk, as the value of its holdings can fluctuate based on overall market conditions and the performance of the dividend-paying stocks it holds. Interest rate risk and sector concentration are also pertinent.

Ideal Investor Profile

FDVV is suitable for investors seeking income through dividends, as well as moderate capital appreciation. Investors who want exposure to dividend-paying stocks within a single investment are likely to be interested.

Market Risk

FDVV is suitable for long-term investors seeking a combination of income and moderate growth. It is generally not suited for active traders due to the emphasis on dividend income rather than short-term gains.

Fidelityu00ae High Dividend ETF (FDVV) offers exposure to dividend-paying US equities. It tracks the Fidelity High Dividend Index. The ETF has a reasonable expense ratio of 0.29%. Investors may find it as an alternative investment to the benchmark (S&P 500) ETF to add dividend yields.

Data Sources:

• Fidelity Investments
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Investment decisions should be based on your own research and due diligence. Past performance is not indicative of future results. Market share figures are estimates and may vary. AUM data fluctuates.