The Fidelity High Dividend ETF (FDVV Quick QuoteFDVV - 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.

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.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

Because the fund has amassed over $9.14 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. FDVV is managed by Fidelity. 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

Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.

It's 12-month trailing dividend yield comes in at 2.80%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

FDVV's heaviest allocation is in the Information Technology sector, which is about 28.4% of the portfolio. Its Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 6.42% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

Performance and Risk

The ETF has added roughly 5.13% so far this year and it's up approximately 30.62% in the last one year (as of 04/21/2026). In the past 52-week period, it has traded between $46.65 and $59.90

FDVV has a beta of 0.87 and standard deviation of 12.52% for the trailing three-year period. With about 111 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 $3.13 billion in assets, iShares Core S&P U.S. Value ETF has $25.27 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.