After years of analyzing dividend ETFs, I’ve realized most investors are making the same mistake: chasing the most popular funds everyone talks about on social media. The big names, the viral picks—they sound safe, but they often underperform.
Here’s the secret: there are two Fidelity ETFs quietly crushing the competition, and hardly anyone’s paying attention. If I had to restart my entire portfolio today with only dividend ETFs, I’d go all-in on these.
⚠️ Quick disclaimer: I’m not a financial adviser, and this isn’t financial advice. Always do your own research before investing.
What I Was Looking For 👀
Not just any dividend fund would do. My criteria were:
Growth potential, not just income.
Resilient to interest rate shifts—because most dividend ETFs crumble when rates move.
Ability to compete with SCHD, the world’s most popular dividend ETF with $70B+ in assets.
That eliminated about 90% of dividend ETFs. What I found in Fidelity’s lineup? Not copycats of Vanguard or Schwab—they’ve got unique strategies that actually work.
ETF #1: FDVV – Fidelity High Dividend ETF 🚀
At first glance, the name sounds boring: “High Dividend.” But FDVV isn’t your typical high-yield ETF. Here’s why it works:
Smart screening: Not just high yield. It filters for low payout ratios and dividend growth, ensuring dividends are sustainable and increasing.
Top holdings: Nvidia, Microsoft, Apple. Yes, a high dividend ETF with Nvidia as its largest holding. Most traditional dividend ETFs wouldn’t touch tech giants like this.
Performance:
Current yield: ~3% (decent, not crazy)
5-year annualized return: ~17–18% 📈
2025 YTD: +17% (vs SCHD’s ~5%)
Expense ratio: 0.15%—not the cheapest, but totally worth it for this growth. Sector mix: Tech 26%, Financials 19%, Consumer Defensive 12%—a very different recipe than SCHD, which is heavy on energy, healthcare, and staples.
The trade-off: FDVV’s tech tilt means bigger drops in market corrections—max drawdown ~40% vs SCHD’s 33%. But for long-term investors, total returns beat income every time.
ETF #2: FDRR – Fidelity Dividend ETF for Rising Rates 🔥
Sounds gimmicky? Maybe. But FDRR is fascinating:
Designed for rising interest rates
Screens for companies whose stock prices move with Treasury yields
Current yield: ~2% (lower than FDVV, by design)
Heavy tech exposure: 33%
Performance:
Past year: ~17% total return, even outpacing FDVV
5-year annualized: ~13%
Expense ratio: 0.16%
Why include FDRR if FDVV already has tech? Diversification of strategy, not just stocks. FDVV = dividend growth and yield; FDRR = rate protection + growth. Together, they smooth returns and reduce risk in rising rate environments.
The SCHD Question 🤔
SCHD is great for current income (yield ~3.75%, low fees), but it lacks tech exposure, which has driven market momentum lately. FDVV crushed SCHD by ~12% in 2025 alone. For long-term accumulation, that kind of underperformance compounds painfully.
How I’d Allocate If Starting Fresh 💡
70% FDVV – Core growth + dividend mix
30% FDRR – Rate protection + tech exposure
0% SCHD (at least until it adapts to capture growth again)
Popular ≠ optimal. The data speaks for itself.
Why Fidelity Makes It Easy
Trade commission-free if you have a Fidelity brokerage account
Dividends can be automatically reinvested
Seamless cash management integration
For anyone serious about dividend growth investing, these funds deserve attention. Not perfect—but a different philosophy: growth-tilted, quality-screened, rate-aware dividend investing.
If you’re ready to start building a dividend ETF portfolio that actually performs, check out these Fidelity ETFs on moomoo: Start investing here 🚀
