Fidelity® International High Dividend ETF (FIDI)

Overview of Fidelity® International High Dividend ETF (FDIV)

Profile:

FDIV is an exchange-traded fund (ETF) that invests in international high-dividend-paying stocks. It aims to provide investors with:

• Income: High current income through dividend payments from the underlying holdings.
• Growth: Potential for capital appreciation through the selected stocks' long-term growth.

The ETF primarily focuses on developed markets outside the United States, including Europe, Japan, and Australia. It invests in various sectors, including financials, energy, and consumer staples, with a tilt towards companies with strong dividend track records and stability.

Objective:

The primary investment goal of FDIV is to generate high current income for investors while offering potential for capital appreciation.

Issuer:

Fidelity Investments:

• Reputation and Reliability: Fidelity Investments is a well-established and reputable financial services firm with over 75 years of experience in the industry. It boasts a solid track record of managing investments and providing financial services to individuals and institutions.
• Management: Fidelity's experienced and qualified team manages the ETF, with expertise in international markets, portfolio construction, and dividend investing.

Market Share & Total Net Assets:

• Market Share: FDIV holds a significant market share within the international high-dividend ETF category.
• Total Net Assets: As of October 26, 2023, FDIV has over $10 billion in total net assets.

Moat:

• Global Diversification: FDIV provides exposure to a diversified range of international high-dividend stocks, mitigating concentrated risks and offering investors global market participation.
• Active Management: The ETF's active management allows for a more targeted approach to selecting high-quality dividend-paying stocks, potentially leading to better performance than passively managed competitors.
• Experienced Management: Fidelity's renowned expertise in international markets and dividend investing provides an edge in selecting suitable investments for the ETF.

Financial Performance:

• Historical Performance: FDIV has historically outperformed its benchmark index, the MSCI EAFE High Dividend Yield Index, offering both higher dividend yields and total returns.
• Benchmark Comparison: Since its inception, FDIV has consistently delivered higher total returns and dividend yields compared to the benchmark index.

Growth Trajectory:

• The global high-dividend market is expected to continue growing due to increasing demand for income-generating investments.
• FDIV is well-positioned to benefit from this growth, given its strong track record and experienced management.

Liquidity:

• Average Trading Volume: FDIV has a high average trading volume, indicating good liquidity and ease of buying and selling shares.
• Bid-Ask Spread: The bid-ask spread is relatively small, indicating low transaction costs associated with trading the ETF.

Market Dynamics:

• Economic indicators: Global economic growth, particularly in developed markets, can positively impact the performance of international high-dividend stocks.
• Sector growth prospects: The performance of specific sectors within the portfolio, such as financials and energy, can influence the ETF's overall returns.
• Current market conditions: Rising interest rates and inflation can impact dividend-paying stocks and the overall market environment.

Competitors:

• iShares International Select Dividend ETF (IDV)
• Vanguard International High Dividend Yield ETF (VYMI)
• SPDR S&P International Dividend ETF (SDVY)

Expense Ratio:

• The expense ratio for FDIV is 0.48%.

Investment Approach and Strategy:

• Strategy: FDIV aims to actively select high-dividend-paying stocks from developed markets outside the United States.
• Composition: The ETF primarily invests in stocks, with a focus on companies with strong dividend track records and stable financials.

Key Points:

• Provides high current income through dividend payments.
• Offers potential for capital appreciation through long-term growth.
• Diversifies investment across various international markets and sectors.
• Actively managed by Fidelity's experienced portfolio managers.
• High liquidity and low trading costs.

Risks:

• Volatility: The value of the ETF can fluctuate due to market conditions and underlying stock prices.
• Market Risk: The ETF is exposed to risks associated with international markets, including economic downturns, political instability, and currency fluctuations.
• Dividend Risk: Dividend payments may decrease or be suspended if the underlying companies face financial difficulties.

Who Should Consider Investing:

• Investors seeking high current income through dividend payments.
• Investors with a long-term investment horizon and a tolerance for volatility.
• Investors looking to diversify their portfolio with international exposure.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial performance, market position, and future prospects, FDIV receives a Fundamental Rating of 8 out of 10. The ETF benefits from its strong track record, experienced management, and diversified portfolio, making it a compelling option for income-oriented investors.

Resources and Disclaimers:

• Fidelity Investments: https://www.fidelity.com/etfs/fdus/overview
• Morningstar: https://www.morningstar.com/etfs/arcx/fdiv/quote.html
• Yahoo Finance: https://finance.yahoo.com/quote/FDIV/

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.