FDV ETF

As active ETFs continue to mature, more and more firms are entering the space with renewed vigor. Active strategies offer real advantages as a “plus” option on top of a core, passive allocation, while also providing a landing spot for many investors' active mutual fund assets.

FDV is an actively-managed dividend fund, emphasizing low-volatile stocks with strong dividend growth potential. Its AUM is $104 million and its expense ratio is 0.50% after waivers. Its 3.63% expected yield is somewhat attractive, but at least 16 others pay more, with most delivering much better total returns. FDV has barely broken even since November 2022. FDV's managers operate with high conviction but to the detriment of shareholders. Like before, they continue to ignore quality, growth, and sentiment indicators.

2023 was a major year for the world of ETFs, and 2024 offers both significant opportunities and thought-provoking challenges for investors. One firm looking at how to help advisors as it leans more into ETFs is Federated Hermes.