Fidelity High Dividend ETF

FDVV

Market cap $6.88B

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

Investors looking to not only grow their nest egg for retirement, but also generate significant (and hopefully growing) passive income streams to live off of in retirement, have a number of excellent options to choose from.

One of the easiest ways to build a retirement nest egg is to invest in a basket of carefully selected assets that produce strong yields.

Earning passive income is a way of life, and you can build life-changing wealth over time with carefully selected exchange traded funds (ETFs).

Fidelity High Dividend ETF offers a balanced blend of high yield and dividend growth, with a 3.1% yield and strong capital appreciation potential. FDVV's portfolio is skewed toward large-cap stocks, including NVDA, MSFT, and AAPL, providing both stability and growth exposure. FDVV has outperformed SCHD and major indices in total returns over the past five years, aided by its tech exposure and low turnover.

All of us strive for a higher retirement income, and the sooner we start planning for it, the easier it is.

Dividend paying stocks are attractive for a number of reasons. For investors looking to combat the effects of inflation on their savings, investing in companies that not only provide capital appreciation upside as prices rise, but also pay back a percentage of their earnings to investors in the form of dividends, is a time-tested strategy that still holds water (even though many top growth stocks have blown value/dividend stocks out of the water in terms of total returns over the past decade and a half).

High-yielding names you might have overlooked.

Generating passive income is a way to make your money work for you, with little effort.

Investors look to dividends for current income, bolstering portfolios and finances in times of uncertainty. Plenty of ETFs can provide that current income in efficient, helpful ETF wrappers, but perhaps one of the areas where those funds set themselves apart is in the performance potential they can provide, too.