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The Market Now Says a Rate HIKE Is Coming. There’s a Dividend Fund Literally Built for This
['David Beren']
24/7 Wall St.
Yet the fund was built for a world of falling or stable long rates, and that world is under pressure.
Fidelity offers a dividend fund engineered for the environment SCHD tends to struggle in.
A bond-like equity trading on its dividend yield has to offer a higher yield when the risk-free rate rises, and the only way to do that quickly is through a lower price.
Has the Design Actually WorkedOn August 7, 2026, FDRR closed at $69.86, up 15.91% year-to-date and 28.54% over the trailing year.
The Real TradeoffsA dividend fund with a growth stock’s beta is what FDRR amounts to.