Core Viewpoint - The Fidelity High Dividend ETF (FDVV) has been rated as a "hold" due to compromises made in income and growth, leading to questions about its overall value proposition [1]. Group 1: Investment Strategy - The approach taken is long-term, focusing on macro ideas through low-risk ETFs and Closed-End Funds (CEFs) [1]. - The investment strategy includes trading stocks and currencies, with nearly ten years of experience in the field [1]. Group 2: Current Positioning - There is currently no stock, option, or similar derivative position held in any of the companies mentioned, but there is a potential for initiating a long position in FDVV within the next 72 hours [2]. - The article expresses personal opinions and is not influenced by compensation from any company mentioned [2].

Core Insights - The article discusses three Fidelity ETFs that are recommended for long-term investment, emphasizing their performance and unique characteristics. Group 1: Fidelity ETFs Overview - Fidelity Fundamental Large Cap Growth ETF (FFLG) has outperformed broader indexes in most years over the past two decades, holding around 140 stocks across various sectors [1] - Fidelity High Dividend ETF (FDVV) offers a yield of nearly 3% with low fees (0.15%) and focuses on international large and mid-cap stocks, providing geographic diversification [1] - Fidelity Enhanced New India ETF (FENI) targets the high-growth Indian market, benefiting from consistent double-digit GDP growth and a weak U.S. dollar, making it a strong performer despite market volatility [1] Group 2: Performance and Strategy - FFLG employs a multi-factor model emphasizing fundamentals like earnings growth and valuation, aiming for returns on par with or better than broader index funds [1] - FDVV's sector tilt favors companies with income stability and capital appreciation, positioning it as a total return play rather than just a yield-focused investment [1] - FENI's strategy of focusing on the top 25-50 stocks in the Indian market allows for potentially safer exposure to high-growth opportunities [1]

Core Insights - The article discusses three top dividend ETFs that are recommended for generating lifelong passive income, highlighting their unique features and benefits for investors [1]. Group 1: ETF Recommendations - **Schwab U.S. Dividend Equity ETF (SCHD)**: This ETF includes only companies with a history of at least 10 years of dividend payments, has an ultra-low expense ratio of 0.06%, and focuses on dividend appreciation alongside quality factors like return on equity [1]. - **JPMorgan Dividend Leaders ETF (JDIV)**: JDIV holds nearly 100 stocks, primarily from blue-chip companies in the tech and consumer staples sectors, with a yield of around 1.7% and a higher expense ratio of 0.47%. It is positioned for long-term capital appreciation while providing dividends [1]. - **Fidelity High Dividend ETF (FDVV)**: FDVV offers a current yield of approximately 2.8% with an expense ratio of 0.15%. It is suitable for investors seeking higher upfront yields and includes a diversified portfolio of quality dividend stocks [1].

Core Insights - The Fidelity High Dividend ETF (FDVV) focuses on U.S. equities with some international exposure, aligning closely with the S&P 500, which results in greater technology exposure and more consistent, higher total returns [1] Group 1: Investment Strategy - The CEF/ETF Income Laboratory manages portfolios targeting approximately 8% yields, making income investing accessible [1] - The service emphasizes high-yield opportunities in closed-end funds (CEF) and exchange-traded funds (ETF), catering to both active and passive investors of varying experience levels [1] - Most holdings in the CEF/ETF Income Laboratory are monthly payers, facilitating faster compounding and steady income streams [1] Group 2: Analyst Background - Juan de la Hoz has extensive experience in fixed income trading, financial analysis, and economics, focusing on dividend, bond, and income funds, particularly ETFs [1] - He contributes to the CEF/ETF Income Laboratory, which is led by Stanford Chemist, enhancing the service's credibility and expertise [1]

Core Insights - The article emphasizes the importance of passive income, particularly through dividends and dividend-focused exchange-traded funds (ETFs) as effective investment strategies [1][2] Dividend Performance - Dividend-paying stocks have historically outperformed non-dividend payers, with dividend growers and initiators achieving an average annual total return of 10.24% from 1973 to 2024, compared to 4.31% for non-payers [3] - The average annual total return for dividend payers stands at 9.20%, while those with no change in dividend policy yield 6.75% [3] Dividend-Paying ETFs - The article lists 12 attractive dividend-paying ETFs, highlighting their yields and historical performance over various time frames [4][6] - For instance, the iShares Preferred & Income Securities ETF (PFF) has a yield of 6.37% with a 5-year average annual return of 2.05% [4] - The State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) offers a yield of 4.53% with a 5-year average annual return of 10.37% [4] Benefits of Dividends - Healthy dividend-paying stocks tend to increase their payouts over time, which helps investors keep pace with inflation [5] - Dividends provide a consistent income stream without the need to sell off portfolio assets, allowing for reinvestment opportunities [5] Investment Strategies - Investors can diversify their investments across multiple ETFs to balance yield and growth potential [8] - Specific ETFs are recommended based on sector outlooks, such as the Vanguard Energy ETF for those bullish on energy due to AI data center growth, and the Vanguard Real Estate ETF for real estate investments [8]

Core Viewpoint - The market outlook for 2026 is uncertain, with potential impacts from interest rate changes and the ongoing AI rally, making reliable dividend stocks a recommended investment strategy for long-term gains [2][3][4]. Group 1: Investment Opportunities - The Fidelity High Dividend ETF (FDVV) offers exposure to large-cap and mid-cap stocks with high dividends and growing payouts, utilizing a "smart beta" methodology [5]. - FDVV has achieved a return of 12.67% over the past year, with a total return of 14.97% including dividends, presenting a favorable risk-reward profile compared to the S&P 500 [6][9]. - The Vanguard Real Estate Index Fund ETF (VNQ) is positioned to benefit from lower interest rates, potentially revitalizing the real estate sector and increasing the attractiveness of real estate investment trusts (REITs) [8][9]. Group 2: Key Metrics - FDVV has a dividend yield of 2.87% and a low expense ratio of 0.15%, making it an appealing option for long-term dividend reinvestment [7]. - VNQ offers a higher yield of 3.92%, which could attract more investors as interest rates decline [9]. - The Schwab US Dividend Equity ETF (SCHD) has maintained a stable performance over the past four years, with a low tech exposure of 9.7% [9].

Core Insights - Fidelity High Dividend ETF (FDVV) offers a higher yield and better recent performance compared to Vanguard Dividend Appreciation ETF (VIG), which is characterized by lower costs, a broader portfolio, and significantly greater assets under management [2][3] Cost & Size Comparison - FDVV has an expense ratio of 0.15% while VIG is more affordable at 0.05% - The one-year return for FDVV is 17.7%, compared to VIG's 15.1% - FDVV has a dividend yield of 3.02%, significantly higher than VIG's 1.59% - Assets under management (AUM) for FDVV is $7.7 billion, while VIG has $120.4 billion [4][5] Performance & Risk Comparison - The maximum drawdown over five years for FDVV is (20.2%) and for VIG is (20.4%) - Growth of $1,000 over five years is $2,098 for FDVV and $1,713 for VIG [6] Portfolio Composition - VIG tracks 338 large-cap U.S. companies with a focus on technology (30%), financial services (21%), and healthcare (15%), with major holdings including Broadcom, Microsoft, and Apple [7] - FDVV holds 119 stocks with a tilt towards technology (26%), financial services (19%), and consumer defensive (12%), featuring top positions in Nvidia, Microsoft, and Apple [8][9] Investment Implications - Since 2016, FDVV and VIG have delivered nearly identical total returns, with FDVV gaining 13.2% annually and VIG rising 13.1% - Over the last year, three years, and five years, FDVV has outperformed VIG, largely due to its significant position in Nvidia, which has seen substantial growth [10]

Core Insights - The article compares two popular dividend ETFs, Fidelity High Dividend ETF (FDVV) and Schwab U.S. Dividend Equity ETF (SCHD), highlighting their differences in cost, yield, performance, and sector focus, which are crucial for income-focused investors [1][2]. Cost and Size - FDVV has an expense ratio of 0.15%, while SCHD has a lower expense ratio of 0.06%, making SCHD more affordable [3][4]. - As of December 16, 2025, FDVV delivered a 1-year return of 10.3%, whereas SCHD experienced a decline of 1.4% [3]. - The dividend yield for FDVV is 3.0%, compared to SCHD's higher yield of 3.7% [3][4]. - SCHD has over $73 billion in assets under management, making it the second-largest ETF focused on dividend-paying stocks, significantly larger than FDVV [8]. Performance and Risk Comparison - Over a 5-year period, FDVV had a maximum drawdown of 20.2%, while SCHD's was lower at 16.8% [5]. - An investment of $1,000 in FDVV would grow to $1,757 over 5 years, compared to $1,285 for SCHD [5]. Portfolio Composition - SCHD holds around 100 stocks, with significant allocations in energy (19%), consumer staples (19%), and healthcare (16%), focusing on companies with strong dividend histories [6]. - FDVV invests in approximately 120 stocks, with a notable tilt towards technology (26%) and financial services (22%), indicating a growth-oriented strategy [7]. Investment Strategy - SCHD tracks the Dow Jones U.S. Dividend 100 Index, emphasizing quality and consistency in dividend payers [2][9]. - FDVV targets higher-yielding stocks with a focus on growth potential, particularly in the technology sector [10].

Core Insights - The Vanguard High Dividend Yield ETF (VYM) and Fidelity High Dividend ETF (FDVV) both target U.S. companies with above-average dividend yields but differ in their strategies and characteristics [1][2]. Cost and Size Comparison - FDVV has an expense ratio of 0.15% and assets under management (AUM) of $7.7 billion, while VYM has a lower expense ratio of 0.06% and AUM of $84.6 billion [3]. - As of December 18, 2025, FDVV's one-year return is 10.62% compared to VYM's 9.99%, and FDVV offers a higher dividend yield of 3.02% versus VYM's 2.42% [3]. Performance and Risk Analysis - Over the past five years, FDVV experienced a maximum drawdown of -20.17%, while VYM had a drawdown of -15.87% [4]. - An investment of $1,000 in FDVV would grow to $1,754 over five years, compared to $1,567 for VYM [4]. Portfolio Composition - VYM tracks the FTSE High Dividend Yield Index with 566 holdings, primarily in financial services (21%), technology (18%), and healthcare (13%), featuring top stocks like Broadcom, JPMorgan Chase, and Exxon Mobil [5]. - FDVV has a more concentrated portfolio with 107 holdings, focusing heavily on technology (26%) and consumer defensive (12%) sectors, with major positions in Nvidia, Microsoft, and Apple [6]. Investment Implications - While FDVV offers a higher dividend yield, its higher expense ratio may offset some income benefits, making the net earnings from both funds relatively similar for most investors [7][8]. - The sector allocation indicates that VYM is more stable due to its focus on financial services, whereas FDVV's heavier tech exposure may lead to higher volatility and potential returns [9][10].

Core Insights - The Fidelity High Dividend ETF (FDVV) and the Vanguard High Dividend Yield ETF (VYM) focus on delivering above-average income through strong dividend profiles [1] Expense Structure and Size - FDVV has an expense ratio of 0.15% and AUM of $7.7 billion, while VYM has a lower expense ratio of 0.06% and AUM of $84.6 billion [3] - FDVV offers a higher dividend yield of 3.02% compared to VYM's 2.42% [3] Performance and Risk Comparison - Over five years, FDVV has a max drawdown of -20.17% compared to VYM's -15.87% [4] - Growth of $1,000 over five years is $1,772 for FDVV and $1,565 for VYM [4] Portfolio Composition - VYM holds 566 stocks with significant sector exposure in financial services (21%), technology (18%), and healthcare (13%) [5] - FDVV invests in 107 holdings with a heavier tilt towards technology (26%), followed by financial services (19%) and consumer defensive (12%) [6] Investment Implications - FDVV provides higher yield but comes with a higher expense ratio, which may affect net earnings [7] - VYM is more diversified with a broader mix of stocks, potentially offering more stability [9] - FDVV may appeal to those seeking higher earnings despite its volatility, while VYM may suit investors looking for diversification and lower fees [10]