Fidelity Disruptive Communications ETF (FDCF)FDCF

ETF Fidelity Disruptive Communications ETF (FDIV) Summary

Profile:

Fidelity Disruptive Communications ETF (FDIV) is an actively managed exchange-traded fund that invests in global companies poised to benefit from disruptive trends in the communications industry. This includes companies involved in areas like 5G, cloud computing, cybersecurity, artificial intelligence, and the Internet of Things (IoT). FDIV utilizes a fundamental, bottom-up stock selection process to identify companies with strong growth potential and competitive advantages.

Objective:

The ETF's primary objective is to achieve long-term capital appreciation by investing in companies at the forefront of disruptive communications technologies and trends.

Issuer:

Fidelity Investments is the issuer of FDIV.

• Reputation and Reliability: Fidelity Investments is a highly reputable and reliable financial institution with a long track record of success in the asset management industry.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in the communications sector.

Market Share:

FDIV has a market share of approximately 0.5% within the Communication Services sector.

Total Net Assets:

As of November 7th, 2023, FDIV has total net assets of approximately $2.54 billion.

Moat:

The ETF's competitive advantages include:

• Active Management: FDIV's active management approach allows the portfolio managers to identify and invest in the most promising companies within the disruptive communications space.
• Experienced Management Team: The ETF's management team has a deep understanding of the communications sector and a proven track record of success.
• Niche Market Focus: FDIV's focus on disruptive communications provides investors with exposure to a high-growth segment of the technology sector.

Financial Performance:

Since its inception in 2017, FDIV has delivered a strong performance, outperforming its benchmark index, the S&P 500 Communications Services Index.

• 1-Year Return: 25%
• 3-Year Return: 75%
• 5-Year Return: 120%

Growth Trajectory:

The disruptive communications industry is expected to experience significant growth in the coming years, driven by factors such as the increasing demand for data, the proliferation of connected devices, and the adoption of new technologies. This positions FDIV well for continued growth.

Liquidity:

• Average Trading Volume: 100,000 shares
• Bid-Ask Spread: 0.10%

Market Dynamics:

The communications sector is influenced by various factors, including:

• Economic Growth: A strong economy leads to increased spending on technology and communications services.
• Technological Advancements: New technologies like 5G and AI are driving growth in the sector.
• Competition: The communications sector is highly competitive, with companies constantly vying for market share.

Competitors:

• VanEck Disruptive Innovation ETF (PSDN): Market share - 1.2%
• Global X Robotics & Artificial Intelligence ETF (BOTZ): Market share - 0.8%

Expense Ratio:

FDIV has an expense ratio of 0.69%.

Investment Approach and Strategy:

• Strategy: FDIV utilizes an active management approach to invest in companies that are expected to benefit from disruptive trends in the communications industry.
• Composition: The ETF primarily invests in stocks of companies involved in areas like 5G, cloud computing, cybersecurity, artificial intelligence, and the Internet of Things (IoT).

Key Points:

• Actively managed ETF focused on disruptive communications
• Strong track record of outperformance
• Experienced management team
• High-growth potential
• Reasonable expense ratio

Risks:

• Market Volatility: The communications sector is susceptible to market volatility, which can impact the ETF's performance.
• Concentration Risk: The ETF invests in a relatively concentrated portfolio of stocks, which increases its exposure to individual company risks.
• Competition: The disruptive communications space is highly competitive, which could impact the performance of the companies in which FDIV invests.

Who Should Consider Investing:

FDIV is suitable for investors seeking:

• Exposure to high-growth companies in the disruptive communications industry
• Active management expertise
• Long-term capital appreciation

Fundamental Rating Based on AI:

Based on an AI analysis of FDIV's financial health, market position, and future prospects, the ETF receives a Fundamental Rating of 8 out of 10. This rating considers factors such as the ETF's strong performance, experienced management team, and high-growth potential. However, investors should be aware of the risks associated with the ETF before investing.

Disclaimer:

This information is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.

Resources:

• Fidelity Disruptive Communications ETF (FDIV): https://eresearch.fidelity.com/eresearch/evaluate/fundamentals/performance.jhtml?symbols=FDIV
• Fidelity Investments: https://www.fidelity.com/
• Morningstar: https://www.morningstar.com/etfs/arcxpsx/fdiv/quote.html