Friday Fund – ETF FDVV
This is the first in a series of Friday ETF or Index Fund reviews. Recently I became aware of another dividend-paying ETF called “Fidelity® High Dividend ETF.” The ticker symbol is FDVV.
Here are some key things I consider when I buy an ETF:
Expense Ratio 0.29% – This is a bit high for an ETF.
Assets Under Management (AUM) 229.37M – This is a smaller ETF.
ETF Category Large Cap Value ETFs
Net Asset Value (NAV) $30.38
Total Holdings 112 – respectable diversification
Dividend yield 3.90% – A good yield, so far. Better than VYM.
5-Year Returns Are not available – this is a newer ETF
As my frequent readers know, I often recommend VYM (Vanguard High Dividend Yield Index Fund ETF Shares) as a good ETF. The link below will take you to the FDVV view on ETFDN. Note that VYM is Ranked #46 of 82 in Large Cap Value ETFs, which is clearly inferior to VYM.
The XTF.COM rating for FDVV is 9.3 out of 10.0 with no Morningstar stars.
The XTF.COM rating for VYM is 10.0 out of 10.0 and four Morningstar stars.
You can find the XTF, Morningstar and other ratings when you are signed on to a Fidelity Investments accounts. I prefer the XTF rating over Morningstar.
Recommendation: I would only buy FDVV if they lowered the expense ratio and increased the number of holdings to at least 150. I still prefer VYM because it has even better diversification (396 stocks) and a much better net expense ratio of 0.08%.
Abbreviation ETFDN is ETF Daily News