As more and more investors approach retirement, adding some stability to portfolios becomes increasingly critical. Especially amid rising economic uncertainty, adding a bit of income can help keep those portfolios on target for retirement.
Even investors not nearing retirement may, in some cases, benefit from extra income in times of special concern. A high dividend ETF like FDVV, for example, could help advisors and investors add that bit of extra income right now.
See more: Health Tech ETF FDHT Outperforming S&P 500 to Start 2025
The Fidelity High Dividend ETF (FDVV ) charges a 16 basis point fee to track the Fidelity High Dividend Index. The fund invests in large- and midcap firms from developed markets that pay high dividends. While that approach includes some of the Magnificent Seven names, it also includes some solid, steady dividend payers from other sectors. Procter & Gamble Company (P&G), for example, sits in the ETF’s top 10 holdings, per ETF Database.
According to Fidelity Investments data, the strategy offered a 2.85% trailing 12-month distribution yield as of March 24. The high dividend ETF has returned 21.33% over one year per Fidelity Investments data as of February 28. That adds solid performance on top of the fund’s focus on dividends.
Together, those two metrics help paint a picture of FDVV’s potential role for investors. As a satellite addition in portfolios, it could hold its own in the equity category while adding a bit of current income. With inflation proving particularly stubborn and tariffs looming as part of that picture, more income could boost investor prospects. Its low fee also boosts its case as a low-cost option therein. Taken together, the high dividend ETF may be worth offering as an option to clients nervous as volatility looms over retirement nest eggs.
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