Fidelity High Dividend ETF (FDVV) (2024)

Fidelity High Dividend ETF (FDVV) is a passively managed U.S. Equity Large Value exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2016.

The investment seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity High Dividend Index℠. The fund normally invests at least 80% of assets in securities included in the underlying index and in depository receipts representing securities included in the underlying index. The underlying index is designed to reflect the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.

There are 5 members of the management team with an average tenure of 6.42 years: Louis Bottari (2016), Payal Gupta (2019), Peter Matthew (2016), Navid Sohrabi (2019) and Robert Regan (2016). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Fidelity High Dividend NR USD index with a weighting of 100%. Fidelity High Dividend ETF has 123 securities in its portfolio. The top 10 holdings constitute 28.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Fidelity High Dividend ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Fidelity High Dividend ETF has 8.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 91.4% There is 8.3% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fidelity High Dividend ETF has 0.1% of the portfolio in cash.

Fidelity High Dividend ETF has a trailing dividend yield of 3.3%, which is above the 2.4% category average. The fund normally distributes its dividend income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity High Dividend ETF has a portfolio turnover rate of 52%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the Large Value category.

Recently, in the month of April 2024, Fidelity High Dividend ETF returned -2.5%, which earned it a grade of A, as the Large Value category had an average return of -4.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

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