Here's How Many Shares of the Fidelity High Dividend ETF (FDVV) You'd Need for $500 in Yearly Dividends

Core Viewpoint - The Fidelity High Dividend ETF offers a strong dividend yield and a diversified portfolio, making it an attractive option for income-focused investors despite the high initial investment required to generate significant dividends [1][2]. Group 1: ETF Overview - The Fidelity High Dividend ETF has a trailing 12-month yield of 3.02%, which is more than double the average dividend yield of S&P 500 stocks [2]. - The fund pays $1.72 per share annually, requiring an investment of approximately $16,572.23 to generate $500 in yearly income [2]. - This ETF has a market capitalization of $7.41 billion and follows the Fidelity High Dividend Index, primarily consisting of large- and mid-cap domestic equities [3]. Group 2: Investment Strategy - The index methodology excludes stocks with the highest payout ratios, helping to avoid potential dividend traps [3]. - Stocks included in the ETF are evaluated based on yield, payout ratio, and dividend growth, with about 49% of the fund's weight allocated to technology and financial services sectors [4]. - The fund's allocation to technology stocks is 27.57%, which is above average compared to competing ETFs, benefiting from the steady cash flow of large-cap U.S. tech companies [5]. Group 3: Performance and Costs - Since its inception in 2016, the ETF has generated more income and outperformed the average large-cap value fund [7]. - The fund has an annual expense ratio of 0.16%, equating to $16 on a $10,000 investment [7].