Fidelity® Dividend ETF for Rising Rates (FDRR)

ETF Fidelity® Dividend ETF for Rising Rates: Comprehensive Overview

Profile:

Fidelity® Dividend ETF for Rising Rates (FDRR) is a passively managed exchange-traded fund (ETF) that seeks to provide high current income and the potential for capital appreciation through investments in dividend-paying stocks with relative resilience to rising interest rates. The ETF primarily focuses on US large-cap stocks across various sectors, with an emphasis on dividend-paying companies. For sector allocation, the ETF currently exhibits a heavier allocation towards Financials and Consumer Discretionary sectors, while underweight sectors include Basic Materials and Industrials.

Objective:

The primary investment goal of FDRR is to deliver a combination of high current income and potential capital appreciation through investments in stocks possessing resilience against rising interest rates. This objective caters to investors seeking consistent income generation alongside modest capital appreciation potential

Issuer:

Fidelity Investments is the issuer of FDRR.

• Reputation and Reliability: Fidelity carries a strong reputation as a leading financial services company with high reliability. Founded in 1946, Fidelity boasts over $11.3 trillion in assets under management and is known for its commitment to customer service and low-cost investment solutions.

• Management: Fidelity employs qualified portfolio managers with extensive experience in managing equity portfolios. The portfolio holdings and weighting decisions for FBRR rely on sophisticated quantitative models in conjunction with ongoing fundamental insights provided by the Fixed Income Portfolio Managers at FMR Co., Inc.

Market Share:

FDRR commands a relatively small market share within its US High Dividend Equity sub-industry when compared to giants like S&P 500 Dividend Aristocrats Index ETF (NOBL). Given the narrow focus targeting companies with resilience to rising rates, FDRR falls behind more established broad high-dividend ETFs.

Total Net Assets:

As of end of Sept 2023, FDRR exhibits low Total Net Assets of around $38.6 m. This emphasizes its smaller presence compared to major players within its investing area.

Moat:

FDRR enjoys a competitive advantage through focusing on a specific niche: dividends from interest-rate averse businesses. This unique proposition attracts income-yielding investors concerned about fluctuations caused by changes in interest rates.

Financial Performance:

• Returns in the past year reveal modest growth compared to some of its bigger competitors.

• Benchmark Comparison: FDRR displays a modest yet generally positive performance throughout the past years when benchmarked against the S&P 500 High Dividend Index & S&P 500 Index, albeit trailing major broad-market dividend peers.

• Please note, analyzing specific return numbers is omitted due to potential time fluctuations impacting the accuracy when this response resurfaces in the future. For the most updated comprehensive picture, consider investigating recent financial charts and performance data associated with FDRR.

Growth Trajectory:

With rising interest rates as a core theme over the past year, high-dividend ETFs like DVRR gained relevance within investor sentiments. Considering this emerging focus and niche appeal, FDRR shows potential for attracting an investor segment seeking dividend streams less significantly impacted by interest rate upswings.

Liquidity:

Given its smaller market footprint, compared to larger peers FDRR exhibits lower Average Trading Volume. While sufficient enough for most retail orders, larger trades from institutional players might experience broader execution spreads. Bid-Ask Spread, representing transaction cost factors, appears competitive which should satisfy most trading scenarios regardless of volume. Please refer to current real-time data for relevant and accurate liquidity figures when referring to this summary in the f

Market Dynamics:

FDRR exhibits higher sensitivity associated with interest rates compared to many other dividend-orientated ETFs, suggesting greater performance oscillations triggered by changes in the economic climate & Fed decisions. Sector selection within the larger investment universe for FDRR prioritizes industries less vulnerable t