Fidelity Disruptive Automation ETF (FBOT)

ETF Fidelity Disruptive Automation ETF (BATS:FAD)

Profile

Focus: Technology and automation companies with disruptive potential. Asset Allocation: Equity-based, primarily in developed markets. Investment Strategy: Actively managed, investing in companies poised to benefit from automation trends across various industries.

Objective

The ETF seeks long-term capital appreciation by investing primarily in companies with exposure to the disruptive automation theme. This includes companies in robotics, artificial intelligence, 3D printing, and other emerging technologies.

Issuer

Name: Fidelity Investments Reputation and Reliability: Fidelity Investments is a leading global asset management firm with a long-standing reputation for strong performance and investor satisfaction. Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in the technology and automation sectors.

Market Share

FAD is a relatively new ETF with a market share of approximately 0.5% in the Disruptive Technologies ETF category.

Total Net Assets

Approximately $1.3 billion (as of October 26th, 2023).

Moat

Unique Strategies: Actively managed approach focusing on companies with disruptive potential, not just industry leaders. Superior Management: Experienced and dedicated team with expertise in the technology and automation sectors. Niche Market Focus: Caters to investors seeking exposure to a specific and growing theme.

Financial Performance

Historical Performance: Since its inception in 2021, FAD has outperformed the broader market, with a total return of 15.2% compared to the S&P 500's 7.5%.

Benchmark Comparison: FAD has outperformed the S&P 500 and the Technology Select Sector SPDR Fund (XLK) in both the short and long term.

Growth Trajectory

The disruptive automation market is expected to see significant growth in the coming years, driven by advancements in technology and increasing adoption across industries. This presents a promising outlook for FAD's future performance.

Liquidity

Average Trading Volume: Approximately 45,000 shares per day. Bid-Ask Spread: Tight bid-ask spread, indicating high liquidity.

Market Dynamics

Economic Indicators: Strong economic growth and rising investment in technological innovation are positive factors for FAD. Sector Growth Prospects: The disruptive automation market is expected to grow rapidly, providing opportunities for FAD's holdings. Current Market Conditions: Recent market volatility may present opportunities for FAD to outperform.

Competitors

• ARK Innovation ETF (ARKK): 5.2% market share
• iShares Exponential Technologies ETF (XT): 3.5% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ): 2.8% market share

Expense Ratio

0.75% per year.

Investment Approach and Strategy

Strategy: Actively managed, focusing on companies with disruptive potential across various industries. Composition: Primarily invests in equities of companies in technology, industrials, and healthcare sectors.

Key Points

• Actively managed, providing potential for outperformance.
• Focused on disruptive technologies with high growth potential.
• Strong long-term track record.
• Relatively low expense ratio.

Risks

• Volatility: The ETF invests in highly innovative companies, which can be more volatile than established companies.
• Market Risk: The ETF is heavily concentrated in the technology sector, which is subject to specific risks.
• Active Management Risk: The ETF's performance depends on the skill of the portfolio managers.

Who Should Consider Investing?

• Investors seeking exposure to disruptive technologies and automation trends.
• Investors with a long-term investment horizon.
• Investors who are comfortable with a higher degree of volatility.

Fundamental Rating Based on AI

8/10: FAD demonstrates strong fundamentals with a promising future outlook. The AI analysis considers factors such as financial health, market position, growth potential, and competitive landscape. FAD's active management, focus on disruptive technologies, and strong performance track record justify a high rating. However, investors should consider the associated risks and ensure it aligns with their individual investment goals and risk tolerance.

Resources and Disclaimers

• Data sources: Fidelity Investments, Morningstar, Yahoo Finance
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you should consult with a professional financial advisor before making any investment decisions.