The Fidelity High Dividend ETF has underperformed the S&P 500 since its inception nearly 10 years ago, primarily due to its heavy concentration in tech stocks, which make up over 20% of its holdings. Despite a decent dividend yield of 2.8%, investors seeking diversification away from tech may find this fund less appealing compared to other options.
For a professional investor like you, the key insight is that the Fidelity High Dividend ETF (FDVV) has been underperforming the S&P 500 since its inception, and its heavy allocation towards tech stocks, comprising 20.5% of its holdings, may not provide the desired diversification away from tech volatility. If diversification and higher returns are priorities, consider reallocating to a Nasdaq-100 ETF for tech exposure or explore other dividend ETFs and total stock market index funds for broader diversification and potentially better performance.