Dividend ETF strategies have had their ups and downs in recent years. Spikes in market volatility and uncertainty have benefited dividend-focused funds, while they also face competition from other current income-focused ETFs. Last year was a kind one; however, for many equity segments, including dividend funds, it was marked by some serious volatility. The Fidelity High Dividend ETF (FDVV ), was one such beneficiary, positioning it as a fund worth considering into 2026.
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FDVV, which tracks the Fidelity High Dividend Index, charges one of the dividend ETF space’s lower fees at 15 basis points (bps). The fund finished 2025 in the top 10 dividend ETFs by calendar-year flows. Having entered 2025 with $4.3 billion, it started 2026 at just over $8 billion – almost doubling its total per YCharts.
Per ETF Database analysis, much of that can be owed to flows. The dividend ETF added just under $3 billion in 2025 via net inflows, bringing total assets to $2.94 billion. Price appreciation drove the rest of its AUM growth for the year.
A Reason For Interest
What about the fund drew so much interest? The strategy outperformed its ETF Database Category average in 2025, returning 17.2% compared to 15.3% on average. Its approach focuses on mid and large cap stocks paying a high level of dividends. Looking at Fidelity Investments data, the fund offered a 2.8% 30-day SEC Unsubsidized Yield as of January 8th.
What role might such a fund play in the year to come – and could FDVV be poised for another strong year? To start, those at or near retirement may benefit from a dividend ETF to ride out potential volatility.
For FDVV specifically, its focus on large- and midcap strategies offers exposure to equity performance as much as to dividends. It invests in the same megacap tech firms that many other high-performing funds do – with that added income. Should markets do well, FDVV may do well too, but if markets slow, its income can still offer a helpful boost to investors.
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Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
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