DGRO - FDRR: This Dividend Growth Strategy ETF Fails To Impress

2024-07-03 17:23:14 ET

Summary

• 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.

The Fidelity Dividend ETF for Rising Rates ( FDRR ) invests across large and mid-cap companies with a dividend growth profile. The quantitative strategy also targets companies that could benefit from rising interest rates, as the fund name implies....

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