Alright, folks, gather ’round because I’m about to drop some wisdom that even your boss-who hasn’t updated his LinkedIn profile since 2014-would appreciate. If you’re in the market for a solid dividend index fund, well, you’ve hit the jackpot. There are more options out there than there are episodes of *The Office* on repeat at your coworker’s desk. And better yet? Many of these gems come wrapped up in exchange-traded fund (ETF) form-meaning they trade like stocks but act like funds. It’s like getting the best of both worlds without having to choose between coffee or tea at the morning meeting.
I’ve waxed poetic before about some standout dividend-focused ETFs, including my old flame, the Schwab U.S. Dividend Equity ETF (SCHD). But today, let me introduce you to the new kid on the block: the Fidelity High Dividend ETF (FDVV). This one’s special because you can dip your toes in for less than $500-or go all-in if you’re feeling particularly ambitious. Think of it as the financial equivalent of ordering off the dollar menu versus splurging on a full-course dinner.
The Case for Dividends: Because Money Doesn’t Grow on Trees
Before we dive into why FDVV deserves your attention, let’s take a moment to marvel at the sheer power of dividends. Sure, we could talk about how compound interest is the eighth wonder of the world, but instead, here’s a table from a Hartford Funds report that will make you sit up straighter than during an awkward HR training session:
| Dividend-Paying Status | Average Annual Total Return, 1973-2024 |
|---|---|
| Dividend growers and initiators | 10.24% |
| Dividend payers | 9.20% |
| No change in dividend policy | 6.75% |
| Dividend non-payers | 4.31% |
| Dividend shrinkers and eliminators | (0.89%) |
| Equal-weighted S&P 500 index | 7.65% |
See what I mean? Companies that grow their dividends are basically the overachievers of the stock market-the ones who not only finish their work but also help others with theirs. Meanwhile, companies that don’t pay dividends are like those coworkers who eat the last donut and leave the empty box lying around. Not helpful.
Meet FDVV: The ETF That Brings Snacks to the Meeting
Now, onto the star of our show: the Fidelity High Dividend ETF. This little powerhouse has been crushing it lately. Here’s how it stacks up against the classic, low-fee S&P 500 ETF:
| ETF | Recent Yield | 3-Year Avg. Annual Return | 5-Year Avg. Annual Return |
|---|---|---|---|
| Fidelity High Dividend ETF | 3.1% | 15.41% | 17.90% |
| Vanguard S&P 500 ETF (VOO) | 1.2% | 16.53% | 15.45% |
Not too shabby, right? The returns are neck-and-neck with the S&P 500, and in some cases, they even lap it. Plus, the yield is more than double. Imagine bringing twice the snacks to the office potluck-that’s FDVV for you.
And let’s talk fees, shall we? Because nobody likes hidden costs, especially when they sneak up on you like Karen from accounting asking for “just five minutes” of your time. With an expense ratio of just 0.16%, FDVV charges you $1.60 annually per $1,000 invested. That’s cheaper than your coworker’s sad desk salad.
What’s Inside FDVV’s Lunchbox?
So, what exactly does this ETF bring to the table? It tracks the Fidelity High Dividend Index, which focuses on large and mid-sized companies expected to keep paying-and growing-their dividends. Non-dividend payers need not apply; this is a club reserved for the responsible adults of the corporate world.
With 123 holdings, FDVV spreads its bets wisely. Its top 10 holdings account for roughly 33% of its total value. Let’s meet the VIPs:
| Stock | Recent Dividend Yield | Percent of ETF |
|---|---|---|
| Nvidia | 0.02% | 6.06% |
| Microsoft | 0.63% | 5.78% |
| Apple | 0.51% | 4.75% |
| JPMorgan Chase | 1.94% | 2.76% |
| Broadcom | 0.82% | 2.58% |
| Philip Morris International | 3.31% | 2.45% |
| Visa | 0.70% | 2.35% |
| ABN AMRO Bank N.V. | 5.30% | 2.13% |
| Coca-Cola | 3.00% | 2.06% |
| ExxonMobil | 3.61% | 2.00% |
This mix of high-tech wunderkinds (like Nvidia and Broadcom) and blue-chip stalwarts (like JPMorgan Chase and ExxonMobil) is like inviting both the cool kids and the honor roll students to the same party. Everyone wins. Plus, with fewer holdings than the S&P 500, FDVV can focus more heavily on each stock, giving it a bit of an edge.
Oh, and did I mention it leans value-oriented? Yeah, it’s not chasing after flashy growth stocks like everyone else. Instead, it’s the kind of ETF that shows up to work early, stays late, and always remembers to refill the printer paper.
At a recent price of about $54 per share, you can snag nine shares for under $500. And if you play your cards right-adding more money over time-you’ll be sitting pretty in no time. Just remember: patience is key. Investing isn’t a sprint; it’s more like waiting for the IT guy to fix your email.
So there you have it. The Fidelity High Dividend ETF might just be the unsung hero your portfolio needs. Now go forth and conquer, my financially savvy friends. 📈
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2025-08-08 17:13