Fidelity U.S. High Dividend ETF (FCUD.TO)

This ETF offers a passively managed strategy for investing in U.S. large and mid-capitalization companies recognized for their consistent and growing dividend distributions. It utilizes a proprietary, rules-based "smart beta" methodology to gain exposure to specific strategic factors. The selection process begins with the 1,000 largest U.S. equities, which are then evaluated using a composite factor score considering dividend yield, payout ratio, and dividend growth. To neutralize size bias, this score is integrated with a size factor. From each sector, securities are chosen based on their size-adjusted composite score. The final portfolio comprises 60 to 100 stocks, with a higher allocation given to those demonstrating more attractive dividend yields. The index undergoes annual rebalancing.