Building a Lifetime Income Stream with Fidelity ETFs
Laying the Foundation for a Comfortable Retirement
Creating a sizable nest egg takes time, but once it’s in place, it can provide a substantial income stream for life. Even with modest investments, it’s essential to explore how various investment instruments can generate income. Let’s examine three Fidelity exchange-traded funds (ETFs) to understand their potential.
Fidelity International Value Factor ETF (NYSEMKT: FIVA)
This fund focuses on international mid and large-cap value stocks, boasting a solid 3.5% dividend yield and a low expense ratio of 0.18%. Financials, healthcare, and consumer durables are the top sectors, making up 25%, 10%, and 7% of total holdings, respectively. While its performance history is below average, with a compound annual growth rate (CAGR) of 2.9%, investing $3,000,000 in this fund could generate over $100,000 in annual dividend income.
Fidelity International High Dividend ETF (NYSEMKT: FIDI)
This ETF tracks a proprietary index of fewer than 100 international dividend-paying stocks, offering an impressive 5.7% dividend yield and an expense ratio of 0.18%. European-based stocks make up 52% of the fund’s holdings, followed by Asia Pacific (30%) and North, Central, and South America (18%). Financials, utilities, and communications are the top sectors, representing 32%, 11%, and 10% of total holdings, respectively. Investing roughly $1,820,000 in this fund could generate $100,000 in annual dividend income.
Fidelity Yield Enhancer Equity ETF (NYSEMKT: FYEE)
This fund takes a unique approach to generating income by buying growth stocks, including those that don’t pay dividends. It utilizes a covered call options strategy, surrendering some price appreciation to generate a steady income stream. With a dividend yield of 5.4%, top holdings include Nvidia, Alphabet, and other American companies (96% of total holdings). Technology, finance, and retail are the top sectors, making up 44%, 12%, and 9% of total holdings, respectively. Investing $1,960,000 in this fund could generate $100,000 in annual distributions.
Don’t Miss Out on High-Growth Opportunities
Ever feel like you’ve missed the boat on buying successful stocks? Our expert team of analysts occasionally issues “Double Down” stock recommendations for companies poised for significant growth. If you’re worried you’ve already missed your chance, now is the time to invest before it’s too late. With impressive returns like Nvidia (357,084%), Apple (43,554%), and Netflix (462,766%), you won’t want to miss out on our current “Double Down” alerts for three incredible companies.
Leave a Reply