NVIDIA

Apple

Microsoft

Broadcom

JPMorgan Chase & Co

Eli Lilly

Visa

UnitedHealth Group

Cisco Systems

Fidelity Dividend ETF for Rising Rates

FDRR tracks an index of large- and mid-cap companies in developed nations that exhibit strong dividend characteristics and have a positive correlation to increasing 10-year US Treasury yields.

Fidelity Dividend ETF For Rising Rates (FDRR) focuses on dividend stocks with a positive correlation to 10-year U.S. Treasury yields. FDRR is heavy in technology, with a sector breakdown close to the S&P 500, and has value characteristics. FDRR's dividend growth has outpaced inflation, which is a good point.

FDRR Failed To Outperformed In Rising Rates

Fidelity High Dividend ETF

Fidelity International High Dividend ETF

Dividend ETFs often appeal to investors seeking reliable or elevated income opportunities. Before investing, advisors and investors should understand two core elements of dividend ETFs.

2 Questions to Ask When Investing in Dividend ETFs

Fidelity Dividend ETF for Rising Rates invests in large and mid-cap companies with a dividend growth profile and positively correlated to rising Treasury yields. A historical FDRR ETF underperformance relative to alternative dividend growth ETFs is disappointing. Declining rates could add volatility to the strategy.

FDRR: This Dividend Growth Strategy ETF Fails To Impress

The Fidelity Stocks for Inflation ETF and Fidelity Dividend ETF For Rising Rates funds are designed for an inflationary environment. The former, FCPI, focuses on fundamentals and momentum, while the latter, FDRR, seeks dividends and correlation with treasury yields. FCPI has outperformed FDRR since its inception, but both funds have lagged the S&P 500 index.

ETFs For Inflation: Is FCPI Better Than FDRR?

Fidelity Stocks for Inflation ETF

Fidelity Momentum Factor ETF

Fidelity Enhanced Large Cap Growth ETF

Fidelity Enhanced Small Cap Etf

The debate around economic resilience and the direction of inflation and interest rates continues into summer. Fidelity offers an array of ETFs to reflect your portfolio's position on the path of interest rates looking ahead.

Whichever Direction Rates Move, Consider Looking to Fidelity ETFs

Fidelity Dividend ETF for Rising Rates invests in companies expected to perform well in a rising interest rate environment. The fund has underperformed historically raising questions about the effectiveness of its strategy with an outlook for rates to decline going forward. We recommend investors to avoid FDRR while considering alternative dividend ETFs.

FDRR: Strategy Concerns As Interest Rates Decline

Fidelity® Dividend ETF for Rising Rates holds dividend stocks showing a positive correlation to 10-year U.S. Treasury yields. The portfolio has better value and quality metrics than the benchmark. The FDRR ETF has lagged the S&P 500 and two popular quality dividend ETFs.

FDRR: Attractive Value And Quality, Yet Lagging In Rising Rates

FDRR is an investment vehicle mindful of macro, utilizing an equity strategy calibrated to benefit from tighter monetary policy in the U.S. Past performance revealed flaws in the strategy. A case for monetary policy to remain contractionary still could be constructed, but as FDRR's past performance illustrated, this is hardly enough for its holdings to appreciate meaningfully.

FDRR: This Dividend Strategy Looks Good On Paper

WisdomTree Emerging Markets High Dividend Fund

WisdomTree Global High Dividend Fund

iShares Core Dividend Growth ETF

WisdomTree US Quality Dividend Growth Fund

WisdomTree U.S. High Dividend Fund

Sound Equity Income ETF

WisdomTree U.S. Total Dividend Fund

WisdomTree International High Dividend Fund

VanEck Morningstar High Dividend ETF

iShares Select Dividend ETF

AAM S&P Emerging Markets High Dividend Value ETF 

First Trust Morningstar Dividend Leaders Index Fund

First Trust Value Line Dividend Index Fund

Xtrackers MSCI All World ex US High Dividend Yield Equity ETF

Xt EAFE Div Yld Shs

iShares Core High Dividend ETF

Voya Asia Pacific High Dividend Equity Income Fund

Voya Emerging Markets High Income Dividend Equity Fund

Invesco KBW High Dividend Yield Financial ETF

Legg Mason Low Volatility High Dividend ETF

Legg Mason International Low Volatility High Dividend ETF

FlexShares Quality Dividend Defensive Index Fund

Investing in dividend-paying stocks has proved to be a helpful strategy, outperforming global markets over the long term. Dividend income strategies play an important role for multi-asset income portfolios. But they can also run the risk of being too narrowly focused, which can limit both income potential and upside participation when equity markets rise.

Dividend Investing: Broader Is Better For Multi-Asset Strategies

FDRR tracks the Fidelity Dividend Index For Rising Rates, a potentially misleading title considering how poor it performed last year. My analysis traced the performance to FDRR's sector-neutral strategy and a methodology that places minimal importance on a security's correlation with long-term U.S. Treasury yields.

FDRR: 3% Dividend Yield, But Little Protection Against Rising Rates

ProShares Equities for Rising Rates ETF

Simplify Interest Rate Hedge ETF

FolioBeyond Rising Rates ETF

Advocate Rising Rate Hedge ETF

U.S. treasury yields jumped following the release of upbeat U.S. economic data points.

Rising Rates ETFs to Tap on Upbeat Economic Data

Fidelity Dividend ETF for Rising Rates ETF invests in dividend stocks that should profit from rising rates. It is better than the S&P 500 regarding valuation and quality metrics.

FDRR: Designed For Inflation And Still Unconvincing

The Fidelity Dividend ETF for Rising Rates claims to select stocks that can provide protection during a rising rate environment. However, the selection criteria is based on historical correlations between stock performance and treasury yields and is only given a 10% composite score weight.

FDRR: Complex Index Methodology And Poor Historical Performance

FDRR holds dividend-paying North American stocks with a positive correlation to 10-Year U.S. Treasury Yields. Fund expenses are 0.29%, and the ETF has $586 million in AUM. FDRR has outperformed SPY by about 3% YTD, and tends to be less volatile than the broader market. Top holdings include Apple, Microsoft, and Johnson & Johnson.

FDRR: A Dividend ETF Built For Rising Rates, But Should You Buy?

FDRR tracks the Fidelity Dividend Index for Rising Rates, which is supposed to represent the performance of the developed-world large- and mid-cap companies, including the U.S. FDRR's portfolio has changed since my note from July 2021. The article delves into its current iteration, paying due attention to factors.

FDRR: Not Appealing Right Now Despite Hawks Prevailing

FDRR invests in dividend stocks with returns correlated to Treasury yields.

FDRR: Dividends For Rising Rates

Aptus Collared Income Opportunity ETF

VictoryShares US Large Cap High Div Volatility Wtd ETF

VictoryShares US Small Cap High Div Volatility Wtd ETF

First Trust Dorsey Wright Momentum & Dividend ETF

WisdomTree U.S. SmallCap Dividend Fund

Siren DIVCON Dividend Defender ETF

WisdomTree US Smallcap Quality Dividend Growth Fund

Global X SuperDividend US ETF

iShares U.S. Dividend & Buyback ETF

Amplify CWP Dividend & Option Income ETF

Invesco Dow Jones Industrial Average Dividend ETF

WisdomTree U.S. LargeCap Dividend Fund

WisdomTree U.S. MidCap Dividend Fund

WisdomTree Dividend ex-Financials Fund

First Trust BuyWrite Income

First Trust Hedged BuyWrite Income ETF

Each month, I give a broad overview of dividend and income-focused ETFs, selecting them from my growing database of about 750 funds. I've added a seventh category to this monthly series: risk management ETFs, bringing the total number of funds analyzed to 88.

December Dividend And Income ETF Report: The Ultimate Investors Guide

Recent surveys suggest that tightening will occur at a quicker pace.

Fidelity Dividend ETF For Rising Rates ETF: A Decent Option Under Existing Conditions

Overseeing around $475 million in AUM, FDRR is moderately priced, with its expense ratio of 0.29% being lower than the U.S. Equities asset class median of 0.38%. The fund offers a distribution yield marginally north of 2%, which is above the yield of SPY, but the drawback is its poor historical dividend growth.

FDRR: Dividend Strategy Mindful Of The Macro

FDRR strategy and performance. Comparing FDRR with a simple reference strategy.

FDRR: A Dividend ETF Designed For Inflation

In the world of exchange traded funds, names can be deceiving. On first glance, the Fidelity Dividend ETF for Rising Rates (FDRR) is one of them.

Can Names Be Deceiving? Fidelity's FDRR ETF

These Fidelity funds to buy serve various purposes in portfolios and some are worth close consideration by investors over the near term. The post The 3 Best Fidelity Funds to Buy appeared first on InvestorPlace.

The 3 Best Fidelity Funds to Buy

Fidelity High Yield Factor ETF

Fidelity Quality Factor ETF

Fidelity NASDAQ Composite Index

These Fidelity funds are some of the best from the issuer's expansive lineup. Here's what investors should know about each.

News for Fidelity Dividend ETF for Rising Rates ETF (FDRR)