Is the Fidelity Yield Enhanced Equity ETF's Promise Too Good to Ignore? Understanding the Risks of This Fidelity Options Income ETF

The Fidelity Yield Enhanced Equity ETF (NYSEMKT: FYEE) is a relatively new exchange-traded fund (ETF). Based on the ETF's fourth-quarter 2024 dividend of $0.508 per share, it has an annualized dividend yield of over 7%. Given the S&P 500 index's (SNPINDEX: ^GSPC) tiny 1.2% yield today, the Fidelity Yield Enhanced Equity ETF will probably interest high-yield investors. Before you buy it, however, you need to understand what you are buying.Exchange-traded funds have changed over the years. When they were first introduced they religiously tracked indexes. But there are only so many major indexes to track, so ETF sponsors started to create new indexes. Some of those indexes were refined versions of the major indexes, some were simply created out of thin air. And then ETF sponsors started to offer actively managed ETF products.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool