Let me be real with you: Most investors are doing dividend ETFs completely wrong. They chase the hype, the social media favorites, the ones everyone’s talking about—but almost always miss the hidden gems.
After years of analyzing dividend ETFs, I’ve found two Fidelity ETFs quietly crushing the competition—and almost nobody’s talking about them.
If I had to start my investment journey from scratch tomorrow, these are the only funds I’d buy.
(Quick disclaimer: I’m not a financial adviser. Always do your own research before investing.)
What I Was Looking For 🧐
Here’s the thing: I wasn’t just looking for income. I wanted:
Funds that can compete with SCHD, the most popular dividend ETF with $70B+ in assets.
Growth potential, not just high yield.
Something that won’t crumble when interest rates move.
That last one cut out 90% of the market.
Most people assume Fidelity just copies Vanguard or Schwab. Nope. Their dividend ETFs are engineered differently, and one strategy is outperforming SCHD by double digits this year alone.
1️⃣ FDVV – Fidelity High Dividend ETF
The name sounds boring… “High Dividend,” yawn. But trust me, this ETF isn’t your typical dividend fund.
Most high-yield ETFs load up on beaten-down value stocks that might cut dividends next quarter. FDVV does something smarter:
Screens for high dividend-paying companies
Filters for low payout ratios (so dividends are sustainable)
Filters for dividend growth (payments increasing over time)
Result? ~120 stocks, with Nvidia, Microsoft, and Apple as the top holdings. Yes, a high dividend ETF with Nvidia as #1.
📈 Performance:
Current yield: ~3%
5-year annualized return: 17–18%
This year alone: up ~17% vs SCHD’s ~5%
The secret? A tech-heavy tilt: 26% tech, 19% financials, 12% consumer defensive. Compare that to SCHD, which barely touches tech.
💡 Real example: $10,000 in FDVV in 2021 → $20,000 today (with dividends reinvested). Same in SCHD → ~$15,000.
⚠️ Caveat: The tech tilt means bigger drops during corrections. Max drawdown: 40% vs SCHD’s 33%. If you panic-sell, this fund will test you.
2️⃣ FDRR – Fidelity Dividend ETF for Rising Rates
Yes, it sounds gimmicky—a dividend ETF for rising rates—but hear me out.
Traditional dividend stocks suffer when rates rise. FDRR is different: it screens for companies whose stocks historically move with Treasury yields.
Holdings? Nvidia 8%, Apple 7%, Microsoft 6.12%, Alphabet, Broadcom, Meta. Growth vibes, not boring dividend plays.
Tech allocation: ~33% (even higher than FDVV)
Current yield: 1.5–2%
Designed to protect your portfolio during rising rate environments
Performance check:
1-year total return: ~17% (outperforming FDVV!)
5-year annualized: ~13%
Expense ratio: 16bps
Assets under management: $600M (liquid enough for most investors)
💡 Why pair it with FDVV? Diversification isn’t just stocks—it’s different strategies. FDVV = dividend growth. FDRR = rate sensitivity. Together, they smooth returns and protect upside.
Why Not SCHD? ❌
SCHD is solid: low fees, 3.75% yield, dividend growth >11% over 10 years. But here’s the problem:
No tech exposure
Concentrated in energy, healthcare, staples
In 2025, FDVV crushed SCHD by 12%+
For wealth-building over decades, underperformance compounds painfully.
How I’d Start Over 💡
70% FDVV – core growth + dividends
30% FDRR – rising rate protection + tech exposure
0% SCHD (for now)
Popular isn’t always optimal. Data doesn’t lie. If you’re building long-term wealth, total return > current yield.
The Bonus: Fidelity Ecosystem 🌐
Trade commission-free with a Fidelity brokerage account
Dividends reinvest automatically
Seamless cash management
If you’re serious about dividend growth investing, these funds are underrated powerhouses.
💥 Ready to start investing in these top Fidelity ETFs? Grab them now with Moomoo and start building your wealth today!
👉 Click here to buy FDVV & FDRR on Moomoo
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