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Is Fidelity High Dividend ETF (FDVV) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV - Free Report) is a smart beta exchange traded fund launched on 09/12/2016.
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.
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.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
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 $1.11 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. FDVV is managed by Fidelity. This particular fund 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
It's 12-month trailing dividend yield comes in at 2.73%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 23.70% of the portfolio. Its Financials and Real Estate round out the top three.
When you look at individual holdings, Microsoft Corp Common Stock Usd.00000625 (MSFT - Free Report) accounts for about 5.27% of the fund's total assets, followed by Apple Inc Common Stock Usd.00001 (AAPL - Free Report) and Jpmorgan Chase + Co Common Stock Usd1.0 (JPM - Free Report) .
FDVV's top 10 holdings account for about 29.09% of its total assets under management.
Performance and Risk
So far this year, FDVV has lost about -1.82%, and is up about 20.45% in the last one year (as of 02/18/2022). During this past 52-week period, the fund has traded between $33.69 and $41.29.
The fund has a beta of 1.01 and standard deviation of 22.57% for the trailing three-year period. With about 125 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV - Free Report) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $6.84 billion in assets, iShares Core S&P U.S. Value ETF has $11.65 billion. DFAT has an expense ratio of 0.34% and IUSV charges 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?
Designed to provide broad exposure to the Style Box - All Cap Value category of the market, the Fidelity High Dividend ETF (FDVV - Free Report) is a smart beta exchange traded fund launched on 09/12/2016.
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.
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.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
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 $1.11 billion, this makes it one of the largest ETFs in the Style Box - All Cap Value. FDVV is managed by Fidelity. This particular fund 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
It's 12-month trailing dividend yield comes in at 2.73%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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 23.70% of the portfolio. Its Financials and Real Estate round out the top three.
When you look at individual holdings, Microsoft Corp Common Stock Usd.00000625 (MSFT - Free Report) accounts for about 5.27% of the fund's total assets, followed by Apple Inc Common Stock Usd.00001 (AAPL - Free Report) and Jpmorgan Chase + Co Common Stock Usd1.0 (JPM - Free Report) .
FDVV's top 10 holdings account for about 29.09% of its total assets under management.
Performance and Risk
So far this year, FDVV has lost about -1.82%, and is up about 20.45% in the last one year (as of 02/18/2022). During this past 52-week period, the fund has traded between $33.69 and $41.29.
The fund has a beta of 1.01 and standard deviation of 22.57% for the trailing three-year period. With about 125 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity High Dividend ETF is an excellent option for investors seeking to outperform the Style Box - All Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.
Dimensional U.S. Targeted Value ETF (DFAT - Free Report) tracks ---------------------------------------- and the iShares Core S&P U.S. Value ETF (IUSV - Free Report) tracks S&P 900 Value Index. Dimensional U.S. Targeted Value ETF has $6.84 billion in assets, iShares Core S&P U.S. Value ETF has $11.65 billion. DFAT has an expense ratio of 0.34% and IUSV charges 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.