Dividend ETFs may be a good option for investors who want to generate income without sacrificing the potential for growth.
Additionally, a dividend ETF may be an alternative solution for investors currently in money market funds or sitting on the sidelines in cash. Historically, demand for dividend-paying stocks has tended to rise as interest rates decline. This makes now an ideal time to consider dividend ETFs.
Two funds in this category worth consideration are the Fidelity High Dividend ETF (FDVV ) and the Fidelity International High Dividend ETF (FIDI ).
For U.S. Exposure to High Dividend ETFs, Look to FDVV
The Fidelity High Dividend ETF (FDVV ) invests in securities included in the Fidelity High Dividend Index. The index comprises large and mid-cap dividend-paying companies expected to continue to pay and grow their dividends.
FDVV’s 30-day SEC yield is 2.71% as of December 16. Over a one-year period through November 30, FDVV gained 37.82% on a total return basis.
The top holdings in Fidelity’s U.S.-focused high dividend ETF as of November 29 include NVIDIA, Apple, Microsoft, Targa Resources, and Procter & Gamble. The fund’s top sector by weight is information technology, making up 25.05% of the fund as of November 30.
The fund has $4.3 billion assets under management as of November 30.
Check Out FIDI for International Exposure
The Fidelity International High Dividend ETF (FIDI ) tracks the Fidelity International High Dividend Index. The index reflects the performance of large and mid-cap developed international high dividend-paying stocks expected to continue to pay and grow their dividends.
FIDI’s 30-day SEC yield is 5.55% as of December 16. Over a one-year period, FIDI climbed 20.36% as of November 30.
The international high dividend ETF’s top holdings as of November 29 include Enel SpA, SoftBank Corp, Telefonica, Vodafone, and Engie. The fund’s top sector is financials, making up 31.36% of the fund by weight as of November 30.
Furthermore, FIDI’s top country exposure is Canada, comprising 17.43% of the fund by weight as of November 30.
The fund has $98 million assets under management as of November 30.
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company, unaffiliated with VettaFi. There is no form of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the information herein. VettaFi LLC is the author and owner of these articles.
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