The need for income will not change any time soon, and with ETFs, dividend investors can target attractive yield-producing companies.
In the ongoing search for yield, Fidelity has recently rebranded its popular dividend stock ETF strategy. Effective November 9, 2017, the name of the Fidelity Core Dividend ETF became the Fidelity High Dividend ETF (NYSEArca: FDVV).
“We believe this new name of Fidelity High Dividend ETF will better communicate the ETF’s existing investment strategy and positioning in the marketplace,” according to a Fidelity Investments note. “For this fund, the dominant factor in Fidelity’s index methodology is the selection of the highest yielding stocks and we have decided to highlight this attribute in the fund’s name.”
FDVV is designed to reflect the performance of stocks of large- and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends. While the name of the ETF changed, the index stayed the same, focusing on durable, sustainable dividend payers
The fund recently crossed its 1-year anniversary, attracting roughly $85M in assets under management. The portfolio’s sector makeup is also much different than peers with 30% in financials and information technology each and no utilities exposure. The biggest component holdings are Apple and Microsoft. The index also shows a competitive yield of 3.54%.