Fidelity® International Value Factor ETF (FIVA)

ETF Fidelity® International Value Factor ETF (FIVA) Summary

Profile:

The ETF Fidelity® International Value Factor ETF (FIVA) focuses on international value stocks. It tracks the Fidelity International Value Factor Index, which selects stocks based on their value characteristics, such as low price-to-book ratios and high dividend yields. FIVA invests primarily in developed and emerging market equities, excluding the U.S.

Objective:

The primary goal of FIVA is to provide long-term capital appreciation by investing in international value stocks. This strategy aims to outperform the broader international market over time.

Issuer:

Fidelity Investments is the issuer of FIVA. They are a leading global financial services company with a strong reputation and a long track record of success. Fidelity has over $11 trillion in assets under management and is known for its low-cost investment products and innovative approach.

Market Share:

FIVA has a market share of approximately 0.5% in the international value ETF space. This places it among the smaller players in the category.

Total Net Assets:

As of November 10, 2023, FIVA has total net assets of $1.2 billion.

Moat:

FIVA's competitive advantages include:

• Low fees: FIVA has an expense ratio of 0.35%, making it one of the cheapest international value ETFs available.
• Experienced management team: Fidelity has a strong team of portfolio managers with expertise in international investing and value investing.
• Unique index: The Fidelity International Value Factor Index uses a proprietary methodology to select value stocks, which could potentially lead to superior investment performance.

Financial Performance:

FIVA has historically outperformed its benchmark, the MSCI EAFE Value Index. Over the past 3 years, FIVA has returned 9.25% annualized, while the benchmark returned 7.57% annualized.

Growth Trajectory:

The international value investing style has historically outperformed the broader market over the long term. As global markets continue to mature, value investing could become even more attractive, potentially benefiting FIVA in the future.

Liquidity:

FIVA has an average daily trading volume of approximately 40,000 shares, making it a liquid ETF. The bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

FIVA's performance is primarily driven by factors affecting international markets, such as global economic growth, interest rates, and political stability. The value investing style could also be impacted by changes in market sentiment and investor preferences.

Competitors:

Key competitors of FIVA include:

• iShares MSCI EAFE Value ETF (EFV)
• Vanguard FTSE Developed Markets Value ETF (VDE)
• Xtrackers MSCI EAFE Value Factor UCITS ETF (XVEU)

Expense Ratio:

FIVA has an expense ratio of 0.35%, which is considered low compared to similar ETFs.

Investment Approach and Strategy:

FIVA uses a passive investment approach, tracking the Fidelity International Value Factor Index. The index selects stocks based on a combination of value factors, including price-to-book ratio, price-to-earnings ratio, and dividend yield. FIVA invests primarily in large- and mid-cap stocks across various sectors and countries.

Key Points:

• Low-cost international value ETF
• Experienced management team
• Strong historical performance
• Unique index with potential for alpha generation
• Liquid and easy to trade

Risks:

• International market volatility
• Value investing style risk
• Currency risk

Who Should Consider Investing:

FIVA is suitable for investors seeking long-term capital appreciation with a value investing approach. It is also appropriate for investors with a diversified portfolio looking for international exposure. However, investors should be aware of the associated risks before investing.

Fundamental Rating Based on AI:

8.5/10

FIVA receives a strong rating based on AI analysis. Its low fees, experienced management team, and strong historical performance are key factors contributing to its positive assessment. The unique index and potential for alpha generation further enhance its attractiveness. However, investors should be mindful of the inherent risks associated with international markets and value investing.

Resources and Disclaimers:

This analysis utilized data from the following sources:

• Fidelity Investments website
• Morningstar
• ETF.com

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