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. The fund focuses on high dividend-yielding stocks and aims to provide current income and capital appreciation. It invests primarily in domestic equity securities.

Reputation and Reliability

Fidelity is a well-established and reputable financial services firm with a long track record in asset management.

Management Expertise

Fidelity has a large team of experienced portfolio managers and analysts.

Goal

The fund seeks to provide investment results that correspond to the performance of the Fidelity High Dividend Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Fidelity High Dividend Index, a rules-based index designed to reflect the performance of stocks of large and mid-capitalization dividend-paying companies.

Composition The ETF holds primarily common stocks of U.S. companies with high dividend yields.

Market Share: FDVV holds a moderate market share among high dividend ETFs.

Total Net Assets (AUM): 1330000000

Key Competitors

• Vanguard High Dividend Yield ETF (VYM)
• Schwab US Dividend Equity ETF (SCHD)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The high dividend ETF market is highly competitive, with several large players. FDVV offers a relatively low expense ratio compared to some competitors but faces stiff competition from larger, more established funds like VYM and SCHD, which have significantly larger AUM and trading volumes. FDVV's investment approach is similar, but its index and specific holdings differ. Thus FDVV may have different sector weightings than the other competing ETFs.

Historical Performance: Historical performance data is available from Fidelity and financial data providers.

Benchmark Comparison: The ETF's performance should be compared against the Fidelity High Dividend Index.

Expense Ratio: 0.29

Average Trading Volume

FDVV exhibits moderate liquidity, which is reflected by its average daily trading volume.

Bid-Ask Spread

The bid-ask spread is generally tight, but it may widen during periods of market volatility.

Market Environment Factors

FDVV's performance is influenced by factors such as interest rates, dividend yields, and overall market sentiment towards dividend-paying stocks. Economic growth and inflation rates also play a significant role.

Growth Trajectory

FDVV's growth is tied to the increasing investor interest in dividend-focused investments and the fund's ability to attract assets through performance and marketing efforts.

Competitive Edge

FDVV benefits from Fidelity's strong brand recognition and distribution network. Its low expense ratio is a positive differentiator, attracting cost-conscious investors. Fidelity's active management may enable the fund to outperform its benchmark. The rules-based investment methodology ensures transparency and consistent exposure to dividend-paying stocks. However, it is important to note the high dividend strategies, may not outperform the overall market.

Volatility

FDVV's volatility is generally comparable to that of other high dividend ETFs.

Market Risk

The fund is subject to market risk, interest rate risk, and sector-specific risks associated with the companies in which it invests. High dividend stocks may underperform in growth-oriented market environments.

Ideal Investor Profile

The ideal investor is someone seeking current income and potential capital appreciation from a portfolio of high-dividend-paying stocks. This fund may be appropriate for retirees or investors looking to supplement their income.

Market Risk

FDVV is suitable for long-term investors seeking a blend of income and growth. It can be used as a core holding in a diversified portfolio or as a tactical allocation to the high-dividend space.

Fidelity High Dividend ETF (FDVV) aims to track the Fidelity High Dividend Index, focusing on high dividend-yielding U.S. stocks. Fidelity's trusted reputation and low expense ratio provide competitive advantages. The ETF offers a blend of income and growth suitable for long-term investors. However, its performance is tied to market conditions and interest rates. Investors should consider their risk tolerance and investment goals before investing.

Data Sources:

• Fidelity
• FactSet
• Morningstar
• ETF.com

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and the advice of a qualified financial advisor. Market share data is approximate and may vary depending on the source and calculation methodology. Past performance is not indicative of future results. Expense ratios and AUM can change over time.