Fidelity® International Value Factor ETF (FIVA)FIVA

ETF Fidelity® International Value Factor ETF: A Summary

Profile:

The Fidelity® International Value Factor ETF (IVE) invests in large- and mid-cap stocks of developed and emerging markets outside the US. It focuses on undervalued stocks based on various factors like price-to-earnings, price-to-book, and sales-to-price ratios. Its asset allocation includes a diversified mix of sectors with exposure to financials, industrials, consumer discretionary, and healthcare. The ETF employs a quantitative, multi-factor approach to select undervalued stocks with the potential for long-term growth.

Objective:

IVE seeks to provide long-term capital appreciation and income by investing in international value stocks. It aims to outperform its benchmark index, the MSCI EAFE Value Index, over time.

Issuer:

Fidelity Investments is the issuer of IVE. Fidelity is a reputable and reliable company with a long history in the financial services industry. It boasts over $4.6 trillion in assets under management and has been consistently ranked among the top asset managers.

Market Share:

IVE holds a relatively small market share within the international value ETF segment. However, it has been gaining popularity due to its performance and low expense ratio.

Total Net Assets:

As of November 10, 2023, IVE has approximately $5.89 billion in total net assets.

Moat:

IVE's competitive advantages include:

• Quantitative and Factor-Based Approach: Its multi-factor approach aims to identify undervalued stocks with potential for long-term growth, potentially offering investors an edge in market navigation.
• Low Expenses: With an expense ratio of 0.35%, IVE provides cost-efficient exposure to international value stocks.
• Experience and Expertise: Fidelity has a well-established reputation for managing investment funds. Its experienced team of professionals manages the ETF and leverages its expertise to navigate the international markets.

Financial Performance:

IVE has delivered positive returns since its inception, outperforming both its benchmark index and the broader market in several instances.

Growth Trajectory:

The international value factor investing style has shown strong potential for long-term growth. As global markets continue to grow and evolve, IVE's focus on undervalued international companies positions it to potentially benefit from future market opportunities.

Liquidity:

IVE experiences average daily trading volumes of approximately 38,000 shares, demonstrating good liquidity with relatively tight bid-ask spreads.

Market Dynamics:

Several factors affect IVE's market environment. These include global economic growth, interest rate fluctuations, currency risk, and geopolitical events. These factors can significantly impact international markets and the performance of value stocks.

Competitors:

Key competitors in the international value ETF space include:

• iShares MSCI EAFE Value ETF (EFV)
• Vanguard FTSE Developed Markets Value ETF (VFVA)
• SPDR MSCI EAFE Value ETF (EFAV)

Expense Ratio:

IVE has an expense ratio of 0.35%, which is considered low compared to other international value ETFs.

Investment Approach and Strategy:

IVE employs a passive management strategy. It tracks the Fidelity International Value Factor Index, aiming to replicate its performance. The index comprises companies identified through quantitative analysis based on their value characteristics. The ETF invests in various sectors, with a current emphasis on financials, industrials, and consumer discretionary. The portfolio comprises approximately 300 holdings across developed and emerging markets.

Key Points:

• Invests in undervalued international large- and mid-cap stocks.
• Utilizes a quantitative, multi-factor approach for stock selection.
• Managed by Fidelity Investments, a renowned and experienced asset manager.
• Offers low expense ratio compared to peers.
• Exhibits positive track record and potential for long-term growth.

Risks:

Investing in IVE involves certain risks:

• Market Volatility: The ETF's value fluctuates along with broader market movements and international stock performance.
• Foreign Market Risk: Specific risks associated with individual countries' economies and political environments may impact the ETF's performance.
• Value Investing Style Risk: Value stocks may underperform growth stocks during specific market phases.
• Currency Risk: Fluctuations in currency exchange rates can affect the ETF's returns.

Who Should Consider Investing:

IVE aligns with investors who:

• Seek long-term capital appreciation through international value stock exposure.
• Prefer diversified portfolio holdings across developed and emerging markets.
• Are comfortable with moderate market volatility and specific risks associated with international investments.
• Have a longer investment horizon and believe in the potential of value investing.

Fundamental Rating Based on AI:

Based on an AI-powered analysis considering financial health, market position, and future potential, IVE receives a fundamental rating of 7.5 out of 10. Its strengths lie in its strong financial performance, experienced management, and low expenses. However, its relatively smaller market share and exposure to inherent international market risks are factors to consider.

Resources and Disclaimers:

Please note that this summary does not constitute financial advice. Investing decisions should be made based on individual circumstances and risk tolerance.

Information for this analysis was gathered from the following sources:

• Fidelity Investments website
• Morningstar
• ETF.com
• S&P Global Market Intelligence

Disclaimer: This analysis is provided for general informational purposes only and does not constitute professional financial advice. It is essential to conduct thorough research and seek advice from qualified financial professionals before making any investment decisions.