FDRR - Fidelity Dividend ETF for Rising Rates

NYSEArca - NYSEArca Delayed Price. Currency in USD
30.68
-0.87 (-2.76%)
At close: 4:00PM EDT
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Previous Close31.55
Open31.35
Bid0.00 x 1200
Ask0.00 x 1400
Day's Range30.66 - 31.52
52 Week Range27.06 - 32.80
Volume66,005
Avg. Volume43,173
Net Assets360.23M
NAV31.58
PE Ratio (TTM)N/A
Yield3.38%
YTD Return11.87%
Beta (3Y Monthly)0.00
Expense Ratio (net)0.29%
Inception Date2016-09-12
Trade prices are not sourced from all markets
  • 7 Best of the Best Fidelity Funds to Buy
    InvestorPlace

    7 Best of the Best Fidelity Funds to Buy

    [Editor's note: "7 Best of the Best Fidelity Funds to Buy" was previously published in February 2019. It has since been updated to include the most relevant information available.]Many investors think of Fidelity as a giant in the actively managed mutual funds space. That is true, but Fidelity funds run the gamut of actively managed mutual funds to passive index funds and exchange-traded funds (ETFs).Investors also should not conflate Fidelity's sizable footprint in the actively managed mutual fund space as meaning Fidelity funds are, broadly speaking, pricey. Actually, Fidelity funds are becoming increasingly less expensive and the Boston-based company recently introduced a suite of zero-fee index funds.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn addition to the no-fee index funds, Fidelity eliminated investment minimums on mutual fund, account minimums and other related fees. * 8 Penny Stocks That Have Fallen From Grace Whether its Fidelity funds or Fidelity ETFs, investors have plenty of solid options to choose from and most come with favorable or no fees. Consider some of the following Fidelity funds. Fidelity ZERO Total Market Index Fund (FZROX)Source: Shutterstock Expense Ratio: 0%The Fidelity ZERO Total Market Index Fund (MUTF:FZROX) is one of the initial two zero-fee index funds introduced by Fidelity. The Fidelity ZERO International Index Fund (MUTF:FZILX) is the other. Both Fidelity funds are proving to be successful with investors. As of June 30, FZROK had $3.5 billion of assetsFZROX "seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US," according to Fidelity.Nearly all of this Fidelity fund's stocks are U.S.-based. Fidelity ZERO Extended Market Index Fund (FZIPX)Expense Ratio: 0%Fidelity's suite of zero-fee index funds has grown to four thanks to the recent debut of the Fidelity ZERO Extended Market Index Fund (MUTF:FZIPX) and another fund. Like total market funds, extended market funds are usually cost-effective, but this Fidelity fund ups that ante without charging an annual fee.This Fidelity fund and extended market funds, in general, are useful for investors looking to fill in the gaps created by total market funds or supposedly broad market index funds that are often heavily allocated to large-cap stocks. FZIPX holds primarily mid- and small-cap fare that often go ignored by benchmarks, such as the S&P 500. * 8 Penny Stocks That Have Fallen From Grace This Fidelity fund is one of the firm's newest zero-fee products, having debuted earlier this month. Fidelity Low-Priced Stock Fund (FLPSX)Source: Shutterstock Expense Ratio: 0.62%, or $62 annually on a $10,000 investmentThe Fidelity Low-Priced Stock Fund (MUTF:FLPSX) defines "low-priced" stocks as those with price tags of $35 or below, but this Fidelity fund is not confined to that universe."Normally investing at least 80% of assets in low-priced stocks (those priced at or below $35 per share or with an earnings yield at or above the median for the Russell 2000 Index), which can lead to investments in small and medium-sized companies," according to Fidelity.Over the past ten years, this Fidelity fund is topping broader measures of mid-cap value stocks, a relevant comparison because many of FLPSX's holdings are designated as value plays. Consumer discretionary and technology stocks combine for 38% of this Fidelity fund's weight, while healthcare and financial names combine for 25.5%. Fidelity Quality Factor ETF (FQAL)Source: Shutterstock Expense Ratio: 0.29%As noted earlier, the universe of Fidelity funds includes Fidelity ETFs, an arena in which Fidelity is one of the fastest-growing participants. An array of Fidelity ETFs fit the bill as "cheap," and a case can be made that the Fidelity Quality Factor ETF (NYSEARCA:FQAL) is cost-effective relative to other smart beta strategies.Additional cost efficiencies can be realized with this Fidelity fund because it is part of the firm's expansive platform of commission-free ETF offerings. FQAL, which recently turned two years old, tracks the Fidelity U.S. Quality Factor Index.Compared to investment factors such as growth and value, quality is often overlooked, but that does not diminish the factor's potency. Companies meeting the quality factor's standards often feature strong balance sheets, impressive return on equity and invested capital, low debt ratios and other favorable traits. * 8 Penny Stocks That Have Fallen From Grace Consider this regarding FQAL: Several of this Fidelity fund's top 10 holdings, a group representing over 23% of the ETF's weight, are among the most cash rich domestic companies. Fidelity Nasdaq Composite Index ETF (ONEQ)Source: Shutterstock Expense Ratio: 0.21%The Fidelity Nasdaq Composite Index ETF (NASDAQ:ONEQ) is the oldest Fidelity ETF and arguably one of the most overlooked. While many investors opting for broad-based Nasdaq exposure opt for Nasdaq-100 tracking funds, this Fidelity fund features a broader lineup. A typical Nasdaq-100 index fund or ETF holds just over 100 stocks, but this Fidelity fund has nearly 950 holdings.ONEQ "uses statistical sampling techniques that take into account such factors as capitalization, industry exposures, dividend yield, price/earnings (P/E) ratio, price/book (P/B) ratio, and earnings growth to create a portfolio of securities listed in the Nasdaq Composite Index that have a similar investment profile to the entire index," according to Fidelity.This Fidelity fund's top 10 holdings include familiar fare, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN). Fidelity High Yield Factor ETF (FDHY)Source: Shutterstock Expense Ratio: 0.45%Fidelity funds include an expansive lineup of fixed income offerings, an asset class that Fidelity ETFs are breaking into as well. The Fidelity High Yield Factor ETF (NYSEARCA:FDHY), an actively managed fund, is one of the newest Fidelity funds offering exposure to bonds.This high-yield bond fund ETF, which debuted in June, looks to top the ICE BofAML BB-B US High Yield Constrained Index. As an actively managed ETF, this Fidelity fund can manager credit and interest rate risk if market conditions dictate. Currently, FDHY's holdings have an average duration of 3.5 years. * 8 Penny Stocks That Have Fallen From Grace FDHY has a 30-day SEC yield of 4.45%. Fidelity Dividend ETF for Rising Rates (FDRR)Source: Shutterstock Expense Ratio: 0.29%Conventional wisdom dictates that dividend-paying stocks can be vulnerable in rising interest rate environments, but some ETFs prove that notion wrong. The Fidelity Dividend ETF for Rising Rates (NYSEARCA:FDRR) is an example of an equity-based fund explicitly designed to thrive even as the Federal Reserve boosts borrowing costs.What is important for investors to realize is that not all dividend stocks are pinched by rising rates. The ones that typically hail from rate-sensitive sectors with bond-like traits, such as real estate and utilities.Real estate and utilities stocks combine for less than 9% of FDRR's weight. Rather, the fund is more heavily allocated to cyclical sectors with a history of strength as rates rise. Technology and financial services stocks combine for 35% of this Fidelity fund's roster.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 7 Best of the Best Fidelity Funds to Buy appeared first on InvestorPlace.

  • InvestorPlace

    5 Smart-Beta ETFs to Replace Your Actively Managed Funds

    This month saw many investment professionals gathering for the Inside ETFs conference. The conference features a wide variety of education, advice, and panels on the state of the ETF and investment industry. One of the more interesting facts to come from the conference is that investors are quickly adopting smart-beta ETFs as replacements for underperforming active mutual funds.In fact, according to a Brown Brothers Harriman survey of respondents at the conference, more than one-third highlighted the fact that they purchased a smart-beta ETF to replace an actively managed mutual fund.And you should probably join them.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSmart-beta ETFs use various factors or rules to build-out their portfolios/indexes. Because of this, they blur the line between traditional index investing and active management. The best part is, they are a heck of a lot cheaper than many mutual funds. Thereby, providing better performance. * 7 Healthy Dividend Stocks to Buy for Extra Stability For investors building a portfolio, using smart-beta ETFs could result in better returns and better long-term outcomes. With that, here are five smart-beta ETFs that could find a home in your portfolio and replace your active mutual funds. iShares Edge MSCI Multifactor USA ETF (LRGF)The crux of smart-beta ETFs comes down to their use of factors to develop their portfolios. This includes everything from stocks that exhibit low-volatility or size to those that feature high relative strength or "value." The idea is that honing in on various factors will help a smart-beta fund outperform a regularly weighted index. But, like anything else in the investment world, not every factor will outperform at the same time. Choosing the right one at the right time could be a fool's errand.And that's why the iShares Edge MSCI Multifactor USA ETF (NYSEARCA:LRGF) could be one the best starting places for investors.LRGF tracks the MSCI USA Diversified Multiple-Factor Index. This index combs through large-cap U.S. stocks for the four main determinants of overall success: financially healthy firms, stocks that are inexpensive, smaller companies and trending stocks. Better known in the smart-beta world as quality, value, size, and momentum. LRGF then chooses 150 with the highest scores in each category. What you get is a portfolio of the market's overall best. Current top holdings include Cigna (NYSE:CI) and Marathon Petroleum (NYSE:MPC). * The 10 Best Cheap Stocks to Buy Right Now The proof is in the pudding, the smart-beta ETF is up nearly 30% since its inception back 2015. The best part is, LRGF is dirt cheap at just 0.20% in expenses. That makes it an ideal ETF to own over the longer haul. Vanguard U.S. Liquidity Factor ETF (VFLQ)When it comes to factors, there are countless ETFs that track the big ones like value or size. However, there is one factor that most investors -- and smart-beta ETFs -- ignore. And that would be liquidity.According to Investopedia, liquidity is defined as "the degree to which an asset can be bought or sold in the market without affecting the asset's price." The idea behind the liquidity factor is that those stocks that aren't easily bought and sold can command a premium over those more frequently traded or more liquid equities -- if held for a long enough period. There's plenty of evidence for this.The only smart-beta ETF looking at liquidity is the Vanguard U.S. Liquidity Factor ETF (BATS:VFLQ). VFLQ digs through the Russell 3000 -- which is a total market measure of large-, mid- and small-cap stocks in the U.S. The ETF then looks for the most illiquid stocks in the index based on trading data. The nearly 889 holdings are vastly different make-up than its broader parent.Being less than a year old, it's hard to tell just how the new ETF will do. Likewise, itself is pretty illiquid and features only about $20 million in assets. However, as word gets out about the ignored liquidity factor, the ETF should garner assets in the future. The Vanguard-low expense ratio of just 0.13% won't hurt either. Smart-Beta ETFs To Buy: Goldman Sachs Access High Yield Corporate Bond ETF (GHYB)If there is one area of the market that smart-beta ETFs can really thrive it's in fixed income and bond investing. That's because traditional bond indexes are weighted by the amount of debt issued. So, a firm with the most IOUs will typically be the largest holdings in many bond ETFs. That's kind of counter-intuitive. There's a vast difference in credit quality and the amount of debt owed. And unfortunately, broad bond indexes don't discriminate against "good" debt and those with "bad."This is an even bigger problem when looking at junk bonds and high-yield debt. With their focus on fundamentals and factors, smart-beta ETFs are made for fixed income. And the Goldman Sachs Access High Yield Corporate Bond ETF (NYSEARCA:GHYB) could be a great ETF in the sector.GHYB sets itself apart from junk-bond ETF rivals like the popular SPDR Bloomberg Barclays High Yield Bond ETF (NYSEARCA:JNK) by using various screens to eliminate firms with shaky or deteriorating financials. High-yield bonds already come with a hefty amount risk. They don't call them junk bonds for anything. But, if you can kick-out those firms that are experiencing lower revenues or sinking cash flows, you have a better chance of making money and not losing it. * 5 Stocks Under $5 to Buy Before They Soar For income seekers, this allows for a bit of safety as well as high yield. GHYB currently has a 30-day yield of 6.16%. This yield and stability can be had for a low active mutual fund beating 0.34% in expenses. Invesco S&P 500 Quality ETF (SPHQ)Pop the hood on most active mutual funds and there's a good chance that managers look for stocks with rising revenues, strong dividends, the potential for growth, etc. The hallmarks of so-called quality stocks. And that makes these active mutual funds prime candidates for smart-beta ETFs.One of the oldest quality stocks funds in the sector is the Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ).Launched in 2005, SPHQ tracks the S&P 500 Quality Index. This index digs through the bread and butter index and looks for stocks that score high on three measures: return on equity, accruals ratio and financial leverage ratio. Basically, stocks that getting the job done and are doing so with increasing cash flows and low debts. SPHQ then selects the top 100 stocks in the index to include in the fund. Currently, tech dominates at 40% of assets, with healthcare stocks at a distant second place at just 11% of AUM.Performance for the ETF has been mixed over the years. But that's mostly because SPHQ used to track two different indexes: the Value Line Timeliness Select Index and the S&P 500 High-Quality Rankings Index. The switch to its current index was a smart move as the S&P 500 Quality Index has long been a top performer vs. the regular S&P 500.With expenses of just 0.15%, SPHQ is a great addition to a portfolio and replacement for many active large-cap mutual funds. Fidelity Dividend ETF for Rising Rates (FDRR)One of the earliest styles of smart-beta ETFs to hit the market has been dividend-focused funds. The Fidelity Dividend ETF for Rising Rates (NYSEARCA:FDRR) is the latest incarnation of those ETFs.Dividend stocks and ETFs loose some appeal in the rising rate environments like today. Investors flee these higher yielding instruments for safer bonds as the Fed raises. However, historically, dividend growers have increased their payouts at faster rates than measures of inflation and interest rate hikes. These sorts of stocks continue to do well as the Fed increases benchmark rates.And that's what FDRR does.The ETF tracks a proprietary smart-beta index that follows a basket of large- and mid-cap dividend growth stocks that have a positive correlation of returns to increasing 10-year U.S. Treasury yields. In a nutshell, FDRR combs through all the dividend-paying stocks out there and finds the ones that actually see increased buying activity thanks to their dividend growth as the Fed raises rates. You're basically getting high income and the ability to see that income grow over time. * 5 Stocks That The Smart Money Likes Given the Fed's pace of rate hikes, FDRR could be a wonderful smart-beta ETF to replace an expensive equity income fund in your portfolio.At the time of writing, Aaron Levitt owned a long position in LRGF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post 5 Smart-Beta ETFs to Replace Your Actively Managed Funds appeared first on InvestorPlace.

  • Rising Rates Are No Problem for These 5 ETFs
    InvestorPlace

    Rising Rates Are No Problem for These 5 ETFs

    With the economy going strong, the Fed is estimated to raise rates at least once more in 2018 and an additional three times next year. At the same time, equity investors in high yielding sectors, such as utilities or real estate investment trusts, also feel the pinch. There’s a whole ecosystem of ETFs to buy that offer interest rate protection.