Fidelity® International Value Factor ETF (FIVA)

Overview

The Fidelityu00ae International Value Factor ETF (IVLU) is designed to provide exposure to international equities that exhibit characteristics of value. It aims to invest in companies that are considered undervalued by the market, typically based on metrics such as price-to-earnings ratio, price-to-book ratio, and dividend yield. The ETF focuses on developed markets outside of the United States.

Reputation and Reliability

Fidelity Investments is a well-established and reputable financial services firm with a long history and a broad range of investment products, including a significant ETF offering. They are known for their robust research capabilities and operational infrastructure.

Management Expertise

Fidelity employs experienced portfolio managers and research analysts who are responsible for constructing and managing its ETFs, including the International Value Factor ETF. Their expertise in factor-based investing and international markets is a key component of their strategy.

Goal

The primary investment goal of the Fidelityu00ae International Value Factor ETF is to seek long-term capital appreciation by investing in international equities that demonstrate value characteristics.

Investment Approach and Strategy

Strategy: The ETF aims to track the performance of the Fidelityu00ae International Value Factor Index. This index is designed to identify and invest in international equities (developed markets excluding the U.S.) that are considered to be undervalued relative to their peers.

Composition The ETF primarily holds equities of companies domiciled in developed markets outside of the United States that exhibit value characteristics. The specific holdings will vary based on the index's methodology and market conditions.

Market Share: Market share data for specific niche ETFs like IVLU can fluctuate and is best obtained from real-time financial data providers. However, as a factor-based ETF from a major issuer, it competes within the broader international equity ETF space.

Total Net Assets (AUM): As of the latest available data, the Total Net Assets (AUM) for the Fidelityu00ae International Value Factor ETF are approximately $1.75 billion.

Key Competitors

• iShares MSCI EAFE Value ETF (EFV)
• Vanguard FTSE Developed Markets Value ETF (VEA)
• Schwab International Value ETF (SCHF)

Competitive Landscape

The international value ETF landscape is competitive, with several large asset managers offering similar products. IVLU's advantages include its association with Fidelity's brand and research capabilities, as well as its specific factor-based methodology. Potential disadvantages could be slightly higher expense ratios compared to some broad international market ETFs or less established track records compared to some of the older, larger competitor funds. The market is characterized by a focus on factors, low costs, and broad diversification.

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Benchmark Comparison: The Fidelityu00ae International Value Factor ETF aims to track the Fidelityu00ae International Value Factor Index. Its performance is expected to closely mirror that of its benchmark, with minor deviations due to tracking error and expenses. Over the past five years, it has generally performed in line with its benchmark, with slight underperformance in periods where growth stocks have outpaced value stocks.

Expense Ratio: 0.29

Average Trading Volume

The ETF typically exhibits a healthy average daily trading volume, suggesting good liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for the ETF is generally tight, indicating low transaction costs for efficient trading.

Market Environment Factors

The performance of IVLU is influenced by global economic growth, interest rate policies in developed ex-U.S. markets, currency fluctuations, geopolitical events, and investor sentiment towards value investing versus growth investing. Current market conditions might favor or disfavor value stocks depending on inflation and monetary policy trends.

Growth Trajectory

The ETF has seen steady growth in assets under management since its inception, reflecting investor interest in factor-based strategies and international diversification. Its strategy has remained consistent, focusing on its defined value factor methodology.

Competitive Edge

Fidelity's established reputation and extensive research infrastructure provide a solid foundation. The ETF leverages a systematic approach to value investing, aiming to capture potential mispricings in international markets. Its focus on developed markets outside the U.S. offers a distinct diversification benefit for portfolios primarily concentrated in domestic equities. This factor-based approach can offer a more disciplined and potentially less emotional way to invest in value.

Volatility

Historical volatility for IVLU has been moderate, aligning with the general volatility of international equity markets. Its value-oriented strategy might lead to different performance patterns compared to broad market or growth-focused ETFs.

Market Risk

The ETF is subject to market risk associated with international equities, including currency risk (as it invests in non-U.S. dollar denominated assets), political risk in foreign countries, and economic risk. Specifically, value stocks can sometimes underperform growth stocks for extended periods, representing a style-specific risk.

Ideal Investor Profile

The ideal investor for the Fidelityu00ae International Value Factor ETF is one seeking diversification beyond U.S. markets, who believes in the long-term potential of value investing, and wants to target undervalued international companies. Investors should have a medium to long-term investment horizon.

Market Risk

This ETF is best suited for long-term investors looking to add an international value tilt to their portfolio and for those who understand and believe in the efficacy of value factor investing.

The Fidelityu00ae International Value Factor ETF (IVLU) offers a focused approach to investing in undervalued developed international equities. Backed by Fidelity's strong reputation, it aims for long-term capital appreciation by tracking a specific value factor index. While competitive in the international value space, it provides a diversified option for investors seeking exposure beyond the U.S. market with a disciplined, systematic strategy.

Data Sources:

• Fidelity Investments Official Website
• Financial Data Providers (e.g., Morningstar, ETF.com, Yahoo Finance)

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making investment decisions. Data points like market share and historical performance are subject to change and should be verified with real-time sources.