Fidelity® International High Dividend ETF (FIDI)

ETF Fidelity® International High Dividend ETF (FDIV)

Profile

International High Dividend ETF (FDIV) is a passively managed exchange-traded fund (ETF) launched in 2011. It seeks to provide investment results that generally correspond to the price and yield performance of the Fidelity International High Dividend Index. This index comprises high-dividend-paying companies from developed markets outside the United States.

Sector Allocation:

• Financials (28.12%)
• Consumer Discretionary (14.45%)
• Industrials (13.87%)
• Health Care (10.86%)
• Information Technology (9.80%)
• Other (22.90%)

Investment Strategy: The ETF invests in a diversified portfolio of high-dividend-paying stocks. It uses a sampling strategy to track the index, holding a representative sample of the stocks in the index.

Objective

The primary investment goal of FDIV is to provide high current income through dividend payments. Additionally, it seeks to offer long-term capital appreciation.

Issuer

Fidelity Management & Research Company LLC

Reputation and Reliability: Fidelity Investments is a well-established and reputable asset management company with a long history of success. As of September 30, 2023, Fidelity manages over $4.2 trillion in assets.

Management: The ETF is managed by a team of experienced portfolio managers at Fidelity. The team has a strong track record of managing international dividend-focused strategies.

Market Share

FDIV is ranked 5th among international high-dividend ETFs with a market share of approximately 2.9%.

Total Net Assets

As of October 26, 2023, FDIV has total net assets of approximately $4.9 billion.

Moat

Competitive Advantages:

• Fidelity's strong brand recognition and reputation.
• Experienced management team with a successful track record.
• Competitive expense ratio.

Financial Performance

Historical Performance:

• One Year: +9.8%
• Three Years (Annualized): +5.3%
• Five Years (Annualized): +9.4%

Benchmark Comparison:

FDIV has generally outperformed its benchmark, the Fidelity International High Dividend Index, over different time periods.

Growth Trajectory

The global dividend market is expected to continue growing, providing tailwinds for the ETF. Additionally, the ETF's strong track record and competitive expense ratio may attract further investor interest.

Liquidity

Average Trading Volume: Approximately 300,000 shares

Bid-Ask Spread: 0.02%

Market Dynamics

Factors affecting the ETF's market environment:

• Global economic growth
• Interest rate environment
• Dividend policies of companies in the index

Competitors

• iShares International Select Dividend ETF (IDV) - Market Share: 37.8%
• Vanguard International High Dividend Yield ETF (VYMI) - Market Share: 15.5%
• SPDR S&P International Dividend ETF (DWX) - Market Share: 11.4%

Expense Ratio

The expense ratio for FDIV is 0.47%.

Investment Approach and Strategy

Strategy: The ETF passively tracks the Fidelity International High Dividend Index.

Composition: The ETF primarily invests in stocks of companies located in developed markets outside the United States. The top ten holdings include Telefonica SA, BHP Group Limited, HSBC Holdings plc, and Rio Tinto Limited.

Key Points

• High dividend yield
• Diversified portfolio
• Experienced management team
• Competitive expense ratio

Risks

Main Risks:

• Volatility of international markets
• Dividend cuts by companies in the index
• Currency fluctuations

Who Should Consider Investing

• Investors seeking high current income through dividends
• Investors with a long-term investment horizon
• Investors comfortable with the volatility of international markets

AI-based Fundamental Rating: 8.5/10

FDIV receives a strong rating from our AI-based system. The analysis considers various factors, including the ETF's financial performance, market position, and future prospects. The ETF has a consistent dividend track record, a competitive expense ratio, and a strong management team. These strengths are offset by the inherent volatility of international markets and the potential for dividend cuts.

Resources and Disclaimers

• Data from Morningstar Direct as of October 26, 2023.
• This information is for informational purposes only and should not be considered financial advice.
• Investing involves risk, including the potential loss of principal.
• Past performance is not indicative of future results.