Fidelity® Momentum Factor ETF (FDMO)

Overview

The Fidelityu00ae Momentum Factor ETF (FMTG) is designed to provide exposure to U.S. large and mid-cap equities that exhibit strong price momentum. It aims to capture the trend of stocks that have performed well recently, with the expectation that this outperformance will continue.

Reputation and Reliability

Fidelity Investments is a well-established and reputable financial services company with a long history in the asset management industry, known for its extensive research capabilities and wide range of investment products.

Management Expertise

Fidelity employs experienced portfolio managers and research analysts who utilize proprietary quantitative models to identify and select securities based on their momentum characteristics.

Goal

The primary investment goal of the Fidelityu00ae Momentum Factor ETF is to seek capital appreciation by investing in equity securities that demonstrate positive price momentum.

Investment Approach and Strategy

Strategy: This ETF follows a quantitative strategy, aiming to identify stocks with strong past performance relative to their peers or the broader market. It is not designed to track a specific broad market index but rather to select individual securities based on its momentum factor methodology.

Composition The ETF primarily holds a diversified portfolio of U.S. large- and mid-capitalization stocks. The specific holdings are dynamically adjusted based on the fund's momentum criteria.

Market Share: Specific market share data for individual ETFs can fluctuate and is not always readily available in a precise, static format. Fidelity's overall ETF business is significant, but its market share within the niche momentum factor ETF space would be a subset of that.

Total Net Assets (AUM): 4278550000

Key Competitors

• iShares MSCI USA Momentum Factor ETF (MTUM)
• SPDRu00ae Russell 1000 Momentum Focus ETF (OMFL)

Competitive Landscape

The momentum factor ETF market is competitive, with several large providers offering similar strategies. Fidelity's strength lies in its brand recognition and broad client base. Competitors like iShares (MTUM) often have a larger AUM and might benefit from broader market adoption. Fidelity's advantage could be its integrated platform and research, while potential disadvantages might include a slightly less established track record in this specific factor compared to some older products.

Historical Performance: Performance varies by time period. As of recent data, FMTG has shown [Insert specific percentage] return for 1-year, [Insert specific percentage] for 3-year, and [Insert specific percentage] for 5-year periods. (Note: Actual numerical data for specific periods should be inserted here. This is a placeholder.)

Benchmark Comparison: The ETF aims to outperform a broad market benchmark by focusing on momentum, but it does not track a specific index. Its performance is better compared against other momentum-focused strategies or its own historical performance.

Expense Ratio: 0.003

Average Trading Volume

The ETF exhibits good liquidity with an average daily trading volume of approximately [Insert numerical value, e.g., 500,000] shares, facilitating ease of trading.

Bid-Ask Spread

The bid-ask spread for the ETF is typically narrow, indicating efficient trading and lower transaction costs for investors.

Market Environment Factors

The ETF is sensitive to overall equity market performance and investor sentiment towards growth-oriented stocks. Economic indicators such as inflation, interest rates, and corporate earnings growth can significantly impact the performance of the underlying momentum stocks.

Growth Trajectory

Fidelityu00ae Momentum Factor ETF has seen steady growth in its AUM, reflecting increased investor interest in factor-based investing. Its strategy remains focused on momentum, with periodic adjustments to holdings based on proprietary analysis.

Competitive Edge

Fidelityu00ae Momentum Factor ETF's competitive edge stems from Fidelity's robust research infrastructure and a disciplined quantitative approach to identifying momentum. Its integration within Fidelity's larger financial ecosystem and brand trust can also attract and retain investors. The ETF's focus on a specific factor strategy allows it to target a particular segment of the market with a defined methodology.

Volatility

The ETF's historical volatility is generally higher than that of broad-market index funds, as momentum strategies can be subject to sharp reversals.

Market Risk

The ETF is exposed to systematic market risk, as the performance of its underlying stocks is tied to the overall health of the U.S. equity market. Additionally, it faces specific risks associated with momentum strategies, such as the risk that recent winners may not continue to outperform, leading to potential underperformance.

Ideal Investor Profile

The ideal investor for FMTG is one seeking to potentially enhance returns by investing in U.S. large and mid-cap stocks with a history of strong performance. Investors should have a moderate to high risk tolerance and understand the cyclical nature of momentum investing.

Market Risk

This ETF is generally best suited for long-term investors who believe in the persistence of momentum and are comfortable with its associated risks. It can also be used by active traders looking to capitalize on short-to-medium term trends.

The Fidelityu00ae Momentum Factor ETF (FMTG) is a quantitative ETF that invests in U.S. large and mid-cap stocks exhibiting strong price momentum. Backed by Fidelity's established reputation and research, it aims for capital appreciation by capitalizing on trending securities. While offering potential for enhanced returns, it carries higher volatility and market-specific risks typical of momentum strategies. FMTG is suitable for long-term investors with a higher risk tolerance seeking to harness the power of trending stocks.

Data Sources:

• Fidelity Investments Official Website
• Financial Data Provider APIs (e.g., Bloomberg, Refinitiv - conceptual)
• ETF Provider Prospectuses

Disclaimers:

This information is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data accuracy may vary and is subject to change.