ETF Evaluator: Fidelity Dividend ETF for Rising Rates (FDRR) Follow This ETF

Fidelity Dividend ETF for Rising Rates Overview

Fidelity Dividend ETF for Rising Rates (FDRR) is a passively managed U.S. Equity Large Value exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2016.

The investment seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Dividend Index for Rising Rates℠. The fund normally invests at least 80% of assets in securities included in the underlying index and in depository receipts representing securities included in the underlying index. The underlying index is designed to reflect the performance of stocks of large and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends and have a positive correlation of returns to increasing 10-year U.S. Treasury yields.

About Fidelity Dividend ETF for Rising Rates (FDRR)

There are 5 members of the management team with an average tenure of 8.59 years: Louis Bottari (2016), Payal Gupta (2019), Peter Matthew (2016), Navid Sohrabi (2019) and Robert Regan (2016). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Russell 1000 TR USD index with a weighting of 100% and Fidelity Div for Rising Rates NR USD index with a weighting of 100%. Fidelity Dividend ETF for Rising Rates has 128 securities in its portfolio. The top 10 holdings constitute 42.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Fidelity Dividend ETF for Rising Rates is part of the Equity global asset class and is within the U.S. Equity ETF group. Fidelity Dividend ETF for Rising Rates has 5.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 94.3% There is 5.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fidelity Dividend ETF for Rising Rates has 1.9% of the portfolio in cash.

Assets Under Management

The fund has $708 million in total assets, which is below the $5 billion average for the Large Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FDRR Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Dividend ETF for Rising Rates expense ratio is low compared to funds in the Large Value category. Fidelity Dividend ETF for Rising Rates has an expense ratio of 0.15%, which is 59% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Dividend ETF for Rising Rates has a portfolio turnover rate of 27%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 41% for the Large Value category.

Recently, in the month of June 2026, Fidelity Dividend ETF for Rising Rates returned -2.4%, which earned it a grade of F, as the Large Value category had an average return of 1.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Fidelity Dividend ETF for Rising Rates has a trailing yield of 2.16%, which is above the 1.74% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Dividend ETF for Rising Rates Grades

Year to date, the ETF has returned 8.2%, 3.7 percentage points worse than the category, which translates into a grade of F. The fund has returned 22.9% over the past year (grade of C), 18.9% over the past three years (grade of B) and 12.0% per year over the past five years (grade of B).

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