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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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Fidelity. FDVV has been able to amass assets over $7.73 billion, making it one of the largest ETFs in the Style Box - All Cap Value. Before fees and expenses, this particular fund 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.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.16%.
It's 12-month trailing dividend yield comes in at 3.02%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For FDVV, it has heaviest allocation in the Information Technology sector --about 27.8% of the portfolio --while Financials and Consumer Staples round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA) accounts for about 6.85% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 34.32% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity High Dividend ETF has added about 16.65% so far, and it's up approximately 14.53% over the last 12 months (as of 12/15/2025). FDVV has traded between $43.60 $57.44 in this past 52-week period.
The fund has a beta of 0.88 and standard deviation of 12.92% 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 $3.01 billion in assets, iShares Core S&P U.S. Value ETF has $24.43 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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Fidelity. FDVV has been able to amass assets over $7.73 billion, making it one of the largest ETFs in the Style Box - All Cap Value. Before fees and expenses, this particular fund 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.
With one of the least expensive products in the space, this ETF has annual operating expenses of 0.16%.
It's 12-month trailing dividend yield comes in at 3.02%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
For FDVV, it has heaviest allocation in the Information Technology sector --about 27.8% of the portfolio --while Financials and Consumer Staples round out the top three.
Taking into account individual holdings, Nvidia Corp (NVDA) accounts for about 6.85% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 34.32% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity High Dividend ETF has added about 16.65% so far, and it's up approximately 14.53% over the last 12 months (as of 12/15/2025). FDVV has traded between $43.60 $57.44 in this past 52-week period.
The fund has a beta of 0.88 and standard deviation of 12.92% 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 $3.01 billion in assets, iShares Core S&P U.S. Value ETF has $24.43 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.