Shortly after it launched in September of last year, I profiled the new Fidelity Core Dividend ETF (NYSEARCA:FDVV) to see how it stacked up against many of the larger, well-known dividend ETFs. My conclusion at the time was that, while it was still early to draw any real conclusions, I thought the fund had the potential to be one of the highest yielders in the group (spoiler: it has) and I liked the diversity within the portfolio (it's become more concentrated since then). The fund has only $50 million in assets so it's still flying under the radar, but given a little more time, I think this fund will soon be in the discussion with the biggest dividend ETFs.
How The Fund Is Built
The fund's stated objective is to target "large and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends". The universe starts with the 1000 largest stocks by market cap (excluding BDCs, limited partnerships, closed-end funds, etc.) and calculates a composite score based on the following factors.
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