The official name of this ETF is Fidelity High Dividend ETF and should compete with SCHD, VIG, DGRO, VYM and COWZ. However, the ETF is known for its "Style Box - All Cap Value Category." In other words, it's a Smart Beta ETF that uses "non-cap weighted strategies." There are 100-stock components to this ETF, including NVDA, AAPL, MSFT, AVGO, etc. that pays a little bit of dividends even thought they happen to be growth stocks.
The performance obviously has been unreal. Beats the S&P 500 for the last 1/3/5 years and also beats all other "smart beta" ETFs like IUSV and DFAT. The expense ratio is a bit higher at 0.15% vs. 0.06% for SCHD. FDVVs 100-stock components are similar to the components of SCHD and COWZ, which number around 105 stocks. 3% yield doesn't sound like much but when you combine that with price appreciation, it is tremendously attractive.
What do you think? Another fad ETF like SCHD was 5 years ago and will soon finish its run? Or is anyone actually seduced by FDVV and "smart-beta" ETFs?
The performance obviously has been unreal. Beats the S&P 500 for the last 1/3/5 years and also beats all other "smart beta" ETFs like IUSV and DFAT. The expense ratio is a bit higher at 0.15% vs. 0.06% for SCHD. FDVVs 100-stock components are similar to the components of SCHD and COWZ, which number around 105 stocks. 3% yield doesn't sound like much but when you combine that with price appreciation, it is tremendously attractive.
What do you think? Another fad ETF like SCHD was 5 years ago and will soon finish its run? Or is anyone actually seduced by FDVV and "smart-beta" ETFs?
Statistics: Posted by Randle2Hard2Handle — Fri Aug 23, 2024 12:07 pm — Replies 0 — Views 49
