Fidelity High Dividend ETF

FDVV

Market cap $7.61B

If you are even remotely familiar with the investment world, names like Charles Schwab and Fidelity are incredibly familiar.

The Schwab US Dividend Equity ETF (NYSEARCA:SCHD ) was often seen as the gold standard among dividend exchange-traded funds.

FDVV defines itself as a smart beta ETF with a quality-dividend growth DNA. A characteristic that in the past brought it great disappointments: underperformance. But today gives it strong momentum, enviable by other dividend-oriented ETFs.

SCHD and FDVV diverge on sector tilts, yield, and fees. Schwab U.S. Dividend Equity ETF (SCHD) offers a higher payout and lower costs.

There are higher-dividend ETFs out there, but this Fidelity fund is a star in the category. It features some surprises, including an unusually large weight to tech stocks.

There are too many great dividend ETFs out there to keep track of these days. However, more choice is a good thing, especially if you're in the market for something very specific.

Fidelity High Dividend ETF has outperformed SCHD and DGRO in total returns the last five years, but its significant outperformance is recent amid AI hype. FDVV's focus on high dividend yield and sector tilts, but its 15% weight on dividend growth results in inconsistent annual payout growth lagging both SCHD and DGRO. FDVV offers meaningful diversification when paired with SCHD, but not DGRO, if its dividend metrics can stabilize.

For the past decade, exchange trade funds (ETF) that track major stock exchanges have done very well serving as wealth building platforms for millions of investors.

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.