The Fidelity High Dividend ETF (FDVV) is an exchange-traded fund designed to provide exposure to U.S. companies focused on dividend distribution and equity-income generation. The ETF is managed by Fidelity Investments and trades under the ticker FDVV on the NYSE Arca.

Classified as an equity ETF focused on dividend-oriented strategies, the fund seeks to reflect, before fees and expenses, the performance of the Fidelity High Dividend Index.

The ETF follows a passive management strategy, maintaining a portfolio structured to replicate the composition and weighting of its benchmark index. The benchmark selects U.S. companies with dividend-payment history and characteristics associated with cash-flow generation and shareholder income distribution.

Diversification and sector exposure

FDVV provides exposure primarily associated with:

• Financials.
• Healthcare.
• Energy.
• Consumer staples.
• Industrials.
• U.S. dividend-paying companies.
• U.S. large-cap and mid-cap equities.
• Equity-income strategies.

The ETF’s performance is particularly sensitive to Federal Reserve monetary policy, interest-rate expectations, and the relative attractiveness between dividend equities and fixed-income securities.

Corporate earnings fluctuations, changes in U.S. economic conditions, and developments affecting sectors traditionally associated with dividend payments may also directly affect the fund’s behavior. The ETF may additionally reflect rotations between growth and value equities within the U.S. market.

Structure and costs

FDVV shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. FDVV may distribute income derived from dividends paid by companies held within the portfolio.

Because the ETF maintains a focus on dividend-paying equities, its behavior may show sensitivity to interest-rate cycles and the dynamics of sectors traditionally associated with equity-income generation.

History and evolution of the ETF

The Fidelity High Dividend ETF was launched in 2016 during a period marked by expanding demand for income-oriented ETFs within the U.S. equity market.

Since inception, the fund has reflected movements associated with U.S. dividend-oriented companies, including changes in monetary conditions, fluctuations in corporate earnings, and shifts in the relative attractiveness between fixed income and equities.

In recent years, FDVV has reflected higher interest-rate cycles, inflation fluctuations, and changes in investor behavior related to equity-income strategies within the U.S. market.

Additional Information

Fidelity High Dividend ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $10.33 billion.

Over the past 12 months, Fidelity High Dividend ETF recorded a return of 15.66%, with its price trading between $53.90 and $64.33 during the same period.

The ETF is traded under the ticker FDVV.