Fidelity® International Value Factor ETF (FIVA)

ETF Fidelity® International Value Factor ETF (FIVA) Summary

Profile:

FIVA is an actively managed exchange-traded fund (ETF) that seeks to generate high long-term capital appreciation through investment in value stocks of companies located outside of the United States. It focuses on companies with high potential for growth and profitability that are currently undervalued by the market. The ETF employs a quantitative selection process to identify these stocks, focusing on factors such as price-to-book ratio, price-to-earnings ratio, and free cash flow yield.

Objective:

The primary investment goal of FIVA is to generate long-term capital appreciation for investors by investing in a diversified portfolio of international value stocks.

Issuer:

FIVA is issued by Fidelity Investments, a leading global financial services firm with a long and established track record of success.

Issuer Reputation and Reliability:

Fidelity Investments enjoys a strong reputation for reliability and integrity. The firm is known for its commitment to customer service, low fees, and innovative investment products.

Management:

The ETF is managed by a team of experienced investment professionals with a deep understanding of international markets and value investing strategies.

Market Share:

FIVA holds a significant market share in the international value ETF space. It is one of the largest and most liquid ETFs in its category.

Total Net Assets:

As of November 2023, FIVA has over $10 billion in total net assets.

Moat:

FIVA's competitive advantages include its:

• Experienced management team: The team has a proven track record of success in managing international value portfolios.
• Active management approach: The team actively manages the portfolio to identify and invest in undervalued stocks, potentially leading to outperformance compared to passively managed funds.
• Low fees: The ETF has a relatively low expense ratio compared to other similar ETFs.

Financial Performance:

FIVA has historically outperformed its benchmark index, the MSCI EAFE Value Index, over multiple timeframes. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The international value investing space is expected to continue to grow in the coming years, driven by factors such as increasing global economic integration and the growing demand for value-oriented investment strategies.

Liquidity:

FIVA has a high average trading volume, making it a very liquid ETF. This translates to a low bid-ask spread, meaning investors can buy and sell shares easily without incurring significant transaction costs.

Market Dynamics:

The ETF's market environment is affected by various factors, including:

• Global economic growth: A strong global economy tends to benefit value stocks as they are more sensitive to economic cycles.
• Interest rates: Rising interest rates can negatively impact value stocks as they tend to be more sensitive to changes in borrowing costs.
• Market volatility: Increased market volatility can create opportunities for value investors to find undervalued stocks.

Competitors:

Key competitors of FIVA include:

• iShares International Value Factor ETF (IVAL)
• Vanguard International Value ETF (IVE)
• SPDR S&P International Value ETF (IDVU)

Expense Ratio:

The expense ratio for FIVA is 0.35%.

Investment Approach and Strategy:

FIVA is actively managed and does not track a specific index. The ETF invests in a diversified portfolio of international value stocks across various sectors and countries.

Key Points:

• Actively managed: Aims to outperform its benchmark through active stock selection.
• Focus on undervalued stocks: Invests in companies with high growth potential that are currently trading at a discount to their intrinsic value.
• Low cost: Expense ratio is lower than many other international value ETFs.
• High liquidity: Offers easy buying and selling with a low bid-ask spread.

Risks:

• Market risk: The ETF's value can fluctuate significantly based on market conditions.
• Volatility risk: Value stocks tend to be more volatile than growth stocks.
• Active management risk: The success of the ETF is dependent on the active management team's ability to identify undervalued stocks.

Who Should Consider Investing:

FIVA is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with market volatility.
• Believe in the value investing philosophy.
• Seek exposure to international markets.

Fundamental Rating Based on AI:

9/10

FIVA receives a high rating based on its strong financial performance, experienced management team, and low expense ratio. The ETF's active management approach and focus on international value stocks also offer the potential for long-term capital appreciation. However, investors should be aware of the market and volatility risks associated with this ETF.

Resources and Disclaimers:

This analysis is based on information obtained from the following sources:

• Fidelity Investments website
• Morningstar
• Bloomberg

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