Fidelity offers many different mutual funds and ETF investment choices. Some of the ETFs have “MSCI” as part of their name. The MSCI is the acronym that stands for Morgan Stanley Capital International. MSCI compiles influential indexes tracked by thousands of fund managers. MSCI’s indexes cover thousands of stocks under various categories and are used as benchmarks to measure the performance of portfolios. The Fidelity ETF for energy, FENY, is named Fidelity MSCI Energy Index. The benchmark index is the MSCI USA IMI Energy Index.
Because I invest for our grandchildren, and I want them to have dividend income, I selected some of the Fidelity Sector ETFs to get them a quarterly dividend that is automatically reinvested. For example, they own shares of FHCL (MSCI Healthcare) and FTEC (MSCI Technology.) But notice in the WSJ dividend update for March 15, 2019, that there are eleven different MSCI Fidelity ETFs to choose from that all pay dividends.
Also note FDRR, FDVV, FIDI, FIVA, FDLO and FMMO as ETFs with some higher yields. The “Initial Dividend” section of the WSJ update also includes three new dividend-focused choices. This tells a story. Investors want dividends, so Fidelity is offering different flavors to meet different needs. I haven’t dug into each of these, and I still prefer VYM, SCHD, DVY and DGRO for most dividend growth opportunities.