This passively managed fund-of-funds is designed to offer exposure to U.S. large and mid-capitalization companies known for their consistent and growing dividend payouts, particularly those whose dividend performance tends to align positively with 10-year Treasury yields. It employs a proprietary, rules-based "smart beta" indexing methodology, aiming to provide investors with access to specific strategic investment factors. The selection process begins with the 1,000 largest U.S. equities. These stocks are then meticulously screened based on a composite factor score, which takes into account their dividend yield, payout ratio, historical dividend growth, and their correlation to 10-year Treasury yields. To ensure a balanced representation and remove any inherent bias toward company size, this composite score is subsequently blended with a size factor. The ultimate portfolio securities are then chosen based on this size-adjusted composite score. The fund typically comprises between 60 and 100 stocks, with groups demonstrating higher dividend yields receiving a greater weighting. A distinguishing feature of this fund, compared to others in its family, is its commitment to sector neutrality. The underlying index undergoes rebalancing on an annual basis.

NVIDIA Corporation

Apple Inc.

Alphabet Inc.

Microsoft Corporation

Broadcom Inc.

Micron Technology, Inc.

JPMorgan Chase & Co.

Meta Platforms, Inc.

Caterpillar Inc.

Eli Lilly and Company

Technology

Financial Services

Communication Services

Consumer Cyclical

Healthcare

Industrials

Consumer Defensive

Energy

Real Estate

Utilities

Fidelity U.S. Dividend for Rising Rates ETF

The fund fund-of-funds is passively managed to provide exposure to large- and midcap US dividend-paying stocks that are expected to continue to pay and grow their dividends with positive correlation to 10-year Treasurys. The fund employs a smart beta investment and rules-based proprietary index methodology, to provide investors with exposure to targeted strategic factors. The starting universe is composed of the largest 1,000 US stocks. Stocks are screened further based on their composite factor score based on dividend yield, payout ratio, dividend growth, and correlation to 10-year Treasury yields. Size bias is removed by blending the composite score with a size factor. Securities are selected based on the size-adjusted composite score. Between 60 to 100 stocks are selected, and groups with higher dividend yields are given more weight. Unlike other ETFs in the same family, this fund is sector neutral. The index is rebalanced annually.

FCRR Stock Price, Chart, Stats & News

Dividend safety

FCRR chart

About

Similar securities