The Fidelity High Dividend ETF Is Near an All-Time High. Here's Why I'm Still Investing.
2026-10-23 13:15
•Todd Shriber •The Motley Fool
•••••••• ••••• Axe Cap view
Why South African Investors Should Watch Tech-Heavy Dividends
High dividend funds with tech exposure bring growth and income but South Africa’s market offers a local twist.
The Fidelity High Dividend ETF’s tech tilt sets it apart from typical dividend funds loaded with energy or staples. It blends the reliable income of dividends with some growth upside, thanks to heavyweights like Nvidia and Apple. That’s less common in South African dividend plays, where banks, retailers, and energy companies dominate payouts. Locally, if you want income with a nod to growth, look at Prosus or Naspers for tech exposure alongside decent dividends, rather than the usual suspects like Standard Bank or AngloGold Ashanti. The rand’s recent weakness versus the dollar means global tech exposure may amplify rand returns, but also volatility. If the rand strengthens sharply, those gains could reverse. For income-minded SA investors tempted by FDVV’s approach, remember the currency risk and weigh it against local dividend stocks’ defensive appeal. this is just our opinion and not financial advice
Buy Prosus for exposure to global tech dividends while trimming pure commodity dividend stocks like AngloGold. Monitor USD/ZAR closely, as a sustained weaker rand would boost returns from offshore tech holdings.
- Prosus
- USD/ZAR
- Rand strength reduces offshore gains
- Tech valuations falling sharply
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The Fidelity High Dividend ETF (FDVV) stands 4.2% below its all-time high with a 2.8% dividend yield. Unlike traditional high-dividend ETFs that focus on consumer staples, energy, and utilities, FDVV takes a unique approach by allocating 31.2% to technology stocks, offering growth potential alongside income. The fund's low 0.15% expense ratio and diversified holdings make it an attractive option for buy-and-hold investors seeking both dividend income and long-term appreciation.
Our take is based on reporting first published by The Motley Fool.