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Fidelity High Dividend ETF Review

Published Fri, 11 Dec 2020 14:56:51 -0500 on Seeking Alpha

Seeking AlphaETF AnalysisFidelity High Dividend ETF ReviewDec. 11, 2020 2:56 PM ET|| About: Fidelity Covington Trust - Fidelity High Dividend ETF (FDVV), Includes: DHS, FDL, GLW, IP, MOby: Fred PiardFred Piard Quantitative Risk & ValueExclusive market risk indicator paired with data-driven model portfolios.SummaryFDVV strategy and performance.
Comparing FDVV with simple strategies.
Scanning FDVV with quality metrics.
This dividend ETF article series aims at evaluating products regarding the relative past performance of their strategies and quality metrics of their current portfolios.
FDVV strategy and performance
The Fidelity High Dividend ETF (NYSEARCA: FDVV) tracks the Fidelity High Dividend Index℠, which is a strategy following systematic rules. The SEC Yield of FDVV is currently 3.29%.
As described on Fidelity website:
The Fidelity High Dividend Index is designed to reflect the performance of stocks of large and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends.
Since inception (09/12/2016), FDVV has underperformed SPY in total return. It also shows a higher risk measured in drawdown and standard deviation of monthly return ("volatility").
Total Return
Annual.Return
Drawdown
Sharpe ratio
Volatility
FDVV
47.87%
9.67%
-38.32%
0.5
17.34%
SPY
87.93%
16.05%
-32.05%
0.91
15.81%

The next chart plots the equity value of $100 invested in FDVV and SPY since FDVV inception.

Comparing FDVV with simple strategies
In previous articles, I have shown how three factors may help cut the risk in a dividend portfolio: Return on Assets, Piotroski F-score, and Altman Z-score.
The next table compares FDVV since inception with three subsets of the S&P 500: stocks with an above-average yield and an above-average ROA, stocks with an above-average yield and a good Altman Z-score, stocks with an above-average... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ALTRIA GROUP 44.46   13.2 3.36 3.36 7.23
INTERNATIONAL PAPER 42.33   10.8 3.93 2.00 4.85
CORNING 30.25   18.6 1.63 0.80 2.74

ALTRIA GROUP - MO
ALTRIA GROUP - MO  


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