FDVV Profile
The Fidelity High Dividend ETF is designed to provide investors with exposure to a portfolio of high-dividend-paying stocks that exhibit potential for sustained dividend growth. Under normal market conditions, the fund invests at least 80% of its assets in securities that are included in its benchmark index, as well as depository receipts representing those securities. This investment strategy ensures that the fund's performance closely tracks that of the underlying index.
The underlying index targets large and mid-cap companies with a strong record of paying high dividends. It selects stocks based on their ability to maintain and potentially increase their dividend payouts. The index's methodology emphasizes firms that not only offer attractive dividend yields but also demonstrate a commitment to dividend growth, reflecting their financial health and stability.
The ETF's focus on high-dividend-paying companies makes it particularly suitable for income-oriented investors seeking regular dividend income and potential capital appreciation. By concentrating on firms with robust dividend policies, the fund aims to deliver consistent income while capturing opportunities in dividend growth. This approach is designed to provide a stable income stream in various market conditions.
As a result of its concentrated investment strategy, the Fidelity High Dividend ETF may exhibit higher exposure to specific sectors known for strong dividend performance, such as utilities and consumer staples. While this focus can enhance income potential, it also means the fund may be subject to sector-specific risks. Investors should consider these factors when evaluating the fund’s suitability for their investment goals.
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