Fidelity Dividend ETF FDRR Gains 23% as Top Tech Names Drive Performance
Fidelity Dividend ETF for Rising Rates holds $676 million in assets, yields 1.98%, and allocates 28% to Nvidia, Apple, Microsoft, Alphabet and Broadcom while delivering a 23% price return versus the S&P 500’s 21% over the past year. Its tech and cyclical tilt provides total-return exposure rather than reliable income for retirees.
1. Fund Profile and Strategy
FDRR screens for dividend-paying stocks with positive rate sensitivity, tilting toward financials, cyclicals and technology rather than utilities or real estate. The fund carries $676 million in net assets, a 0.15% expense ratio and a 0.27 portfolio turnover, operating as a patient buy-and-hold vehicle.
2. Performance Metrics
Over the past year, FDRR delivered a 23% price return compared with the S&P 500’s 21% gain, and has returned 74% over five years versus the S&P 500’s 73%. Year-to-date in 2026, FDRR is up 0.22% while the S&P 500 is down 0.21%, reflecting its defensive tilt during choppy markets.
3. Income Characteristics
The ETF yields 1.98%, below the 10-year Treasury’s 4.15%, making it a modest income source. Annual payouts rose from $0.948 per share in 2021 to $1.347 in 2025, but quarterly distributions vary significantly, complicating cash-flow planning.
4. Retirement Tradeoffs
Heavy technology weighting exposes FDRR to growth-stock volatility, and its sub-2% yield limits income replacement. Retirees may find the fund better suited as a total-return complement rather than a primary source of dependable income.