Fidelity Dividend ETF for Rising Rates

FDRR

Market cap $616M

Overview Fund Activity

58.10 USD

-0.04

0.07%

At close Updated Sep 16, 4:00 PM EDT

1 day

-0.07%

5 days

0.89%

1 month

2.18%

3 months

9.93%

6 months

13.72%

Year to date

13.15%

1 year

14.89%

5 years

75.63%

10 years

130.1%

0

Funds holding %

of 7,463 funds

–

Analysts bullish %

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

100% more funds holding in top 10

Funds holding in top 10: 1 [Q1] → 2 (+1) [Q2]

14% more first-time investments, than exits

New positions opened: 8 | Existing positions closed: 7

1% more capital invested

Capital invested by funds: $177M [Q1] → $180M (+$2.42M) [Q2]

0% more funds holding

Funds holding: 90 [Q1] → 90 (+0) [Q2]

1.87% less ownership

Funds ownership: 33.2% [Q1] → 31.33% (-1.87%) [Q2]

15% less repeat investments, than reductions

Existing positions increased: 28 | Existing positions reduced: 33

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Financial journalist opinion

FDRR: Look At FCPI Instead

Fidelity Dividend ETF for Rising Rates is primarily invested in large-cap dividend stocks correlated to 10-year U.S. Treasury yields. Despite its strategy and strong dividend growth, FDRR has underperformed the benchmark during the recent period of rising rates. FCPI, another Fidelity ETF with a strategy focused on inflation, has the same expense ratio, similar trading volumes, and a more convincing track record.

FDRR: Look At FCPI Instead

FDRR: A Balanced Approach To Dividend Growth And Stock Price Growth

FDRR invests in dividend stocks with positive return correlation to rising rates, but its heavy tech weighting increases downside risk in downturns. The fund's large-cap focus ensures dividend stability, though its long-term correlation to rising rates is more evident. Despite strong total returns and tech growth potential, FDRR's low defensive sector exposure raises volatility concerns.

FDRR: A Balanced Approach To Dividend Growth And Stock Price Growth

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Baby Boomers: Top Fidelity ETFs to Secure Passive Income and Growth During Retirement

Fidelity is one of the leading brokerage firms that offers a wide range of low-cost ETFs.

Baby Boomers: Top Fidelity ETFs to Secure Passive Income and Growth During Retirement

FDRR Failed To Outperformed In Rising Rates

Fidelity Dividend ETF For Rising Rates (FDRR) focuses on dividend stocks with a positive correlation to 10-year U.S. Treasury yields. FDRR is heavy in technology, with a sector breakdown close to the S&P 500, and has value characteristics. FDRR's dividend growth has outpaced inflation, which is a good point.

FDRR Failed To Outperformed In Rising Rates

2 Questions to Ask When Investing in Dividend ETFs

Dividend ETFs often appeal to investors seeking reliable or elevated income opportunities. Before investing, advisors and investors should understand two core elements of dividend ETFs.

2 Questions to Ask When Investing in Dividend ETFs

FDRR: This Dividend Growth Strategy ETF Fails To Impress

Fidelity Dividend ETF for Rising Rates invests in large and mid-cap companies with a dividend growth profile and positively correlated to rising Treasury yields. A historical FDRR ETF underperformance relative to alternative dividend growth ETFs is disappointing. Declining rates could add volatility to the strategy.

FDRR: This Dividend Growth Strategy ETF Fails To Impress

ETFs For Inflation: Is FCPI Better Than FDRR?

The Fidelity Stocks for Inflation ETF and Fidelity Dividend ETF For Rising Rates funds are designed for an inflationary environment. The former, FCPI, focuses on fundamentals and momentum, while the latter, FDRR, seeks dividends and correlation with treasury yields. FCPI has outperformed FDRR since its inception, but both funds have lagged the S&P 500 index.

Whichever Direction Rates Move, Consider Looking to Fidelity ETFs

The debate around economic resilience and the direction of inflation and interest rates continues into summer. Fidelity offers an array of ETFs to reflect your portfolio's position on the path of interest rates looking ahead.

FDRR: Strategy Concerns As Interest Rates Decline

Fidelity Dividend ETF for Rising Rates invests in companies expected to perform well in a rising interest rate environment. The fund has underperformed historically raising questions about the effectiveness of its strategy with an outlook for rates to decline going forward. We recommend investors to avoid FDRR while considering alternative dividend ETFs.

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