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Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
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The Fidelity High Dividend ETF (FDVV - Free Report) 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.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
Managed by Fidelity, FDVV has amassed assets over $8.65 billion, making it one of the largest ETFs in the Style Box - All Cap Value. FDVV seeks to match the performance of the Fidelity Core Dividend Index before fees and expenses.
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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.15% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.77%.
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 25.1% of the portfolio --while Financials and Consumer Staples round out the top three.
When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 6.54% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
FDVV's top 10 holdings account for about 33.89% of its total assets under management.
Performance and Risk
So far this year, FDVV has gained about 4.27%, and is up roughly 17.41% in the last one year (as of 02/16/2026). During this past 52-week period, the fund has traded between $43.60 and $59.90.
FDVV has a beta of 0.88 and standard deviation of 12.61% 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 $3.12 billion in assets, iShares Core S&P U.S. Value ETF has $24.65 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?
The Fidelity High Dividend ETF (FDVV - Free Report) 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.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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
Managed by Fidelity, FDVV has amassed assets over $8.65 billion, making it one of the largest ETFs in the Style Box - All Cap Value. FDVV seeks to match the performance of the Fidelity Core Dividend Index before fees and expenses.
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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.15% for this ETF, which makes it one of the least expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.77%.
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 25.1% of the portfolio --while Financials and Consumer Staples round out the top three.
When you look at individual holdings, Nvidia Corp (NVDA) accounts for about 6.54% of the fund's total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
FDVV's top 10 holdings account for about 33.89% of its total assets under management.
Performance and Risk
So far this year, FDVV has gained about 4.27%, and is up roughly 17.41% in the last one year (as of 02/16/2026). During this past 52-week period, the fund has traded between $43.60 and $59.90.
FDVV has a beta of 0.88 and standard deviation of 12.61% 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 $3.12 billion in assets, iShares Core S&P U.S. Value ETF has $24.65 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.