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Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
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Launched on 09/12/2016, the Fidelity High Dividend ETF (FDVV - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $7.06 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. FDVV is managed by Fidelity. FDVV, before fees and expenses, seeks to match the performance of the Fidelity Core Dividend Index.
The Fidelity High Dividend Index reflects the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.16% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 3.15%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For FDVV, it has heaviest allocation in the Information Technology sector --about 28.1% of the portfolio --while Financials and Consumer Staples round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 6.16% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
Its top 10 holdings account for approximately 32.97% of FDVV's total assets under management.
Performance and Risk
Year-to-date, the Fidelity High Dividend ETF has added roughly 11.94% so far, and was up about 11.23% over the last 12 months (as of 10/13/2025). FDVV has traded between $43.60 $56.02 in this past 52-week period.
FDVV has a beta of 0.92 and standard deviation of 13.86% for the trailing three-year period. With about 122 holdings, it effectively diversifies company-specific risk .
Alternatives
Fidelity High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
iShares U.S. Equity Factor ETF (LRGF) tracks MSCI USA Diversified Multiple-Factor Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. iShares U.S. Equity Factor ETF has $2.89 billion in assets, iShares Core S&P U.S. Value ETF has $22.48 billion. LRGF has an expense ratio of 0.08% and IUSV changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
Launched on 09/12/2016, the Fidelity High Dividend ETF (FDVV - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $7.06 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. FDVV is managed by Fidelity. FDVV, before fees and expenses, seeks to match the performance of the Fidelity Core Dividend Index.
The Fidelity High Dividend Index reflects the performance of stocks of large and mid-capitalization high-dividend-paying companies that are expected to continue to pay and grow their dividends.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Operating expenses on an annual basis are 0.16% for this ETF, which makes it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 3.15%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
For FDVV, it has heaviest allocation in the Information Technology sector --about 28.1% of the portfolio --while Financials and Consumer Staples round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 6.16% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).
Its top 10 holdings account for approximately 32.97% of FDVV's total assets under management.
Performance and Risk
Year-to-date, the Fidelity High Dividend ETF has added roughly 11.94% so far, and was up about 11.23% over the last 12 months (as of 10/13/2025). FDVV has traded between $43.60 $56.02 in this past 52-week period.
FDVV has a beta of 0.92 and standard deviation of 13.86% for the trailing three-year period. With about 122 holdings, it effectively diversifies company-specific risk .
Alternatives
Fidelity High Dividend ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
iShares U.S. Equity Factor ETF (LRGF) tracks MSCI USA Diversified Multiple-Factor Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. iShares U.S. Equity Factor ETF has $2.89 billion in assets, iShares Core S&P U.S. Value ETF has $22.48 billion. LRGF has an expense ratio of 0.08% and IUSV changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.