Fidelity is cutting the fees for a popular dividend fund nearly in half, the asset management company announced Monday. The Fidelity High Dividend ETF (FDVV) is seeing its fee cut to 15 basis points, or 0.15%, from 29 basis points. The fund has about $1.7 billion in assets under management, and has seen $377 million in net inflows this year, according to FactSet. The fee cuts for FDVV and 12 other factor ETFs will reduce fees by $6 million annually, according to Fidelity. “At Fidelity, we have a long history of providing investors with a wide array of high-quality products at a great value to help them meet their investment goals. These fund expense reductions build on that legacy and provide our tens of millions of customers with an even greater value proposition,” Greg Friedman, Fidelity’s head of ETF management and strategy, said in a statement to CNBC. The FDVV has an average annual total return of 9.2% over the past five years. That is below the total return of the S & P 500 in that time frame, but largely in line with the performance of some of the largest dividend ETFs on the market. The fund, which launched in 2016, has a four-star rating from Morningstar. It has a 30-day SEC yield of 3.4%. Fidelity also released more details about the previously announced conversions of enhanced equity mutual funds into exchange traded funds. Those offerings, including the new Fidelity Enhance Large Cap Core ETF (FELC), will also see large drops in fees as part of the conversion process.
Fidelity just slashed the fee for this big dividend ETF
