Fidelity High Dividend ETF

FDVV

Market cap $9.67B

Vanguard High Dividend Yield ETF offers a lower expense ratio and larger assets under management than Fidelity High Dividend ETF. Fidelity High Dividend ETF leans significantly into technology and has generated higher five-year total growth.

The Fidelity High Dividend ETF has delivered average annual returns of 13.3% since its launch in 2016. The iShares Core High Dividend ETF has delivered a slightly higher dividend yield with a lower expense ratio.

The Fidelity High Dividend ETF has underperformed the S&P 500 for almost 10 years since its inception. This dividend fund is oddly top-heavy with tech stocks, with four tech names making up 20.5% of its holdings.

By investing in companies that generate durable free cash flow, investors can help dampen volatility, support total return and deliver sustainable income over the long term. Historically, dividends have been a meaningful contributor to equity returns, accounting for nearly 40% of the S&P 500's total return. Dividends can do more than provide a stream of income; investing in companies that generate free cash flow may help reduce volatility, drive total return and deliver sustainable income over the long term.

The Fidelity High Dividend ETF (FDVV) was launched on 09/12/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Value category of the market.

Fidelity High Dividend ETF offers an attractive >3% yield after a recent tech-led pullback, making it compelling for long-term income investors. FDVV's balanced portfolio blends growth-oriented tech exposure (24%) with recession-resistant dividend payers, enhancing resilience and return potential. The ETF's recent rebalance removed Energy sector exposure, prioritizing long-term growth over short-term performance, and maintained modest international diversification.

I think FDVV today remains a competitive solution its compelling blend of dividend growth and capital appreciation potential. FDVV's strategy favors large/mega-cap U.S. stocks, with a tech and financials tilt, offering higher yield than the S&P 500 but lower than pure income ETFs. Recent sector sell-offs have brought FDVV's key exposures, tech and financials, back to attractive forward valuations, enhancing its relative appeal.

Many retirees focus on ETFs that generate high cash flow and have low volatility. The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) and the Fidelity High Dividend ETF (NYSEARCA:FDVV) are two funds that come to mind.

Investors who are looking to ditch the 9-to-5 grind and live off dividends have a number of options to consider in the investing space.

FDVV offers a higher dividend yield and a more concentrated portfolio than VIG VIG charges a lower expense ratio and has over 13 times more assets under management Both ETFs have similar sector tilts, but FDVV puts slightly more weight on consumer cyclicals