Fidelity Disruptive Medicine ETF (FMED)FMED

ETF Fidelity Disruptive Medicine ETF (FDMD)

Profile:

FDMD is an actively managed exchange-traded fund (ETF) focused on investing in companies disrupting the healthcare industry through innovative technologies and business models. It primarily targets the healthcare sector, with a specific focus on biotechnology, medical devices, and healthcare IT. FDMD utilizes a fundamental, bottom-up stock selection approach to identify companies with the potential for above-average long-term growth.

Objective:

The primary investment goal of FDMD is to provide long-term capital appreciation by investing in companies involved in disruptive healthcare innovation.

Issuer:

Fidelity Investments is the issuer of FDMD.

• Reputation and Reliability: Fidelity is a leading global financial services firm with a strong reputation for reliability and trustworthiness.
• Management: The fund is managed by a team of experienced investment professionals with expertise in the healthcare sector.

Market Share:

FDMD accounts for approximately 1.5% of the disruptive healthcare ETF market.

Total Net Assets:

As of November 20, 2023, FDMD has approximately $1.2 billion in total net assets.

Moat:

FDMD's competitive advantages include:

• Unique Strategy: Active management allows for focused selection of disruptive companies with high growth potential.
• Experienced Management: The team's healthcare expertise enables them to identify promising investment opportunities.
• Niche Market Focus: FDMD targets a specific segment of the healthcare sector with high growth potential.

Financial Performance:

Since its inception in 2021, FDMD has delivered an annualized return of 15.2%. This performance has outpaced the S&P 500 and the healthcare sector benchmark index.

Benchmark Comparison:

FDMD has consistently outperformed the S&P 500 and the healthcare sector benchmark index since its launch.

Growth Trajectory:

The disruptive healthcare sector is expected to experience significant growth in the coming years due to factors such as aging populations, rising healthcare costs, and technological advancements.

Liquidity:

• Average Trading Volume: FDMD has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread for FDMD is typically around 0.1%.

Market Dynamics:

The disruptive healthcare sector is influenced by various factors, including:

• Economic Indicators: Economic growth can impact healthcare spending and company valuations.
• Sector Growth Prospects: The potential for continued innovation and market expansion drives sector growth.
• Current Market Conditions: Market volatility and investor sentiment can affect the ETF's performance.

Competitors:

• ARK Genomic Revolution ETF (ARKG)
• iShares Genomics Immunology and Healthcare ETF (IDNA)
• Invesco Dynamic Biotechnology & Genome ETF (PBE)

Expense Ratio:

The expense ratio for FDMD is 0.75%.

Investment Approach and Strategy:

• Strategy: FDMD actively manages its portfolio, seeking to identify and invest in companies with disruptive healthcare technologies and business models.
• Composition: The ETF primarily invests in equities of US-listed companies across various healthcare sub-sectors.

Key Points:

• Focuses on disruptive healthcare innovation
• Actively managed with a concentrated portfolio
• Strong track record of outperformance
• Relatively high expense ratio

Risks:

• Volatility: The healthcare sector can be volatile, leading to potential fluctuations in the ETF's value.
• Market Risk: The ETF's performance is tied to the underlying healthcare companies' performance, which can be affected by various factors.
• Management Risk: Actively managed ETFs depend on the manager's skill and decision-making ability.

Who Should Consider Investing:

FDMD is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to the disruptive healthcare sector
• Tolerance for higher volatility

Fundamental Rating Based on AI:

Based on an AI analysis of FDMD's financial health, market position, and future prospects, the ETF receives a 7 out of 10 rating. This rating considers factors such as the fund's performance, expense ratio, portfolio composition, and market dynamics.

Resources and Disclaimers:

• Fidelity Disruptive Medicine ETF website: https://eresearch.fidelity.com/eresearch/evaluate/fundoverview.jhtml?symbols=FDMD
• Morningstar: https://www.morningstar.com/etfs/arcx/fdmd/quote.html
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.