Feb. 24, 2025 4:53 PM ETFidelity High Dividend ETF (FDVV)SCHD, DIVB, SPY, VIG, DGRO, DGRW, VYM, FDVVThe Sunday Investor6.46K Followers(17min)SummaryFidelity High Dividend ETF's Index reconstituted effective Monday, resulting in substantial sector allocation changes and an improved dividend yield, now expected to be 3.22%.Despite the changes, FDVV's fundamentals remain solid. The portfolio's expected earnings growth rate is in the high-single-digits and FDVV's forward P/E ratio dropped from 18.00x to 16.68x.There was a slight deterioration in quality, but that's mainly due to increased exposure to Financials sector stocks, where metrics like ROA tend to be lower.Still, FDVV's margins and debt-related metrics are attractive compared to peers like SCHD and DIVB. I expect its "barbell" strategy to continue delivering solid returns moving forward.This article also includes a discussion about "organic" vs. "synthetic" dividend growth, which explains why FDVV's dividend growth rates aren't as good as you might expect.natasaadzicInvestment ThesisThe Index tracked by the Fidelity High Dividend ETF (NYSEARCA:FDVV) reconstituted effective Monday, and shareholders now hold a fund that looks substantially different from a sector perspective but one that's expected to yield aThis article was written byThe Sunday Investor6.46K FollowersThe Sunday Investor has completed all the educational requirements for the Chartered Investment Manager designation and is on track to become a licensed options and derivatives trading advisor. Focusing on U.S. Equity ETFs, The Sunday Investor maintains a comprehensive ETF Database that tracks the performance and fundamentals for nearly 1,000 funds. He is active in the comments section and ready to answer questions about any ETF you might considering.Analyst’s Disclosure: I/we have a beneficial long position in the shares of FDVV, SCHD, VIG, SPY, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.CommentsRecommended For You