Core Insights - The article focuses on two U.S. factor-based ETFs from Vanguard: the Vanguard U.S. Quality Factor ETF Shares (VFQY) and the Vanguard U.S. Multifactor ETF Shares (VFMF) [1] Group 1: Investment Philosophy - The investment philosophy is centered on rational decision-making, downside protection, and independent thinking [1] - The author emphasizes a long-term value investing approach, aiming to provide clear, research-based insights for better understanding of valuation, fundamentals, and risk [1] Group 2: Experience and Background - The author has 10 years of experience as a public finance analyst and has managed a personal investment portfolio focusing on ETF cyclicality and value-oriented investments [1] - The author has written about various investment vehicles including U.S. and foreign equities, closed-end funds, ETFs, and open-end mutual funds [1]

Core Insights - The investment landscape is shifting, with volatility expected to persist into 2026, necessitating more active investment strategies rather than passive approaches [1] - Fidelity is positioning itself as a leader in the ETF market by focusing on factor-based investing, which emphasizes strong screening criteria for portfolio construction [4][5] Group 1: Fidelity's Strategy - Fidelity aims to differentiate itself from competitors by offering ETFs designed for investors seeking simplicity without the need for active management [2][3] - The company utilizes a quality control mechanism in its ETFs to target specific investment outcomes, such as higher income and lower volatility, amidst uncertain economic conditions [5] Group 2: ETF Performance - The Fidelity High Dividend ETF (NYSE:FDVV) is highlighted as a strong choice for income-focused investors, boasting a yield of 3.04% and a notable 22% dividend growth over the past year [6][7][8] - Other Fidelity ETFs include the Fidelity Total Bond ETF with a 4.61% yield and monthly payouts totaling $2.14 annually, and the Fidelity Emerging Markets Multifactor ETF yielding 3.58% with a 27.06% dividend growth in 2025 [7]