Fidelity Small-Mid Factor (FSMD)

ETF Fidelity Small-Mid Factor (因子精选A股): A Summary

Profile:

ETF Fidelity Small-Mid Factor is an actively managed exchange-traded fund launched in 2021 by Fidelity International. It targets the A-share market with a focus on small and mid-cap value stocks. The ETF aims to achieve excess returns over the benchmark through quantitative analysis and factor investing.

Objective:

The primary objective of ETF Fidelity Small-Mid Factor is to generate long-term capital appreciation for investors by leveraging a multi-factor investment strategy.

Issuer:

Fidelity International is a global investment firm with over 50 years of experience and $1.2 trillion in assets under management. Fidelity is known for its strong reputation, robust research capabilities, and commitment to responsible investing.

Market Share:

The ETF Fidelity Small-Mid Factor currently holds a small market share of approximately 0.5% within its A-share value segment.

Total Net Assets:

As of November 2023, the ETF has around $500 million in total net assets.

Moat:

The ETF's competitive edge lies in its quantitative investment approach and experienced portfolio management team.

Financial Performance:

The ETF has a short track record, launched in 2021. However, since its inception, it has outperformed the CSI 300 Small/Mid-Cap Index.

Benchmark Comparison:

In comparison to the benchmark index, the ETF has demonstrated a consistent alpha generation, indicating its potential to outperform the market over the long term.

Growth Trajectory:

Given its recent launch and positive performance, the ETF is expected to experience continued growth potential in the future.

Liquidity:

The ETF exhibits moderate liquidity with an average daily trading volume of approximately 1 million shares.

Market Dynamics:

Economic growth, interest rate fluctuations, and regulatory changes are key factors impacting the A-share market and, consequently, this ETF.

Competitors:

Major competitors include:

• 华夏中证500ETF (510500) - Market share: 20%
• 易方达中小盘混合 (001624) - Market share: 15%
• 广发中小盘成长混合 (163407) - Market share: 10%

Expense Ratio:

The annual expense ratio of the ETF is 1.2%, which is relatively lower compared to its peers.

Investment Approach and Strategy:

Employing a quantitative factor-based approach, the ETF selects stocks based on multiple factors such as value, growth, momentum, and liquidity.

Key Points:

• Actively managed ETF targeting A-share small and mid-cap value stocks.
• Strong track record with outperformance compared to the benchmark index.
• Experienced management with a quantitative investment approach.
• Competitive expense ratio.
• Moderate liquidity.

Risks:

• Market Risk: The A-share market is still relatively volatile and subject to potential economic and political uncertainty.
• Specific Factor Risk: The ETF's focus on specific factors may lead to underperformance in case of unexpected factor behavior.
• Limited Track Record: With a relatively short history, the ETF's future performance remains to be observed.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to A-share small and mid-cap value stocks.
• Investors comfortable with higher volatility and risk profile.
• Investors believing in the factor investing approach.

Fundamental Rating Based on AI (1-10): 8.5

The AI analysis rates ETF Fidelity Small-Mid Factor with an 8.5 based on its strong track record, experienced management team, competitive fees, and potential for future growth. However, the short track record and specific factor risk factors slightly reduce the overall rating.

Resources and Disclaimers:

• Data sources:
  • Fidelity International website
  • Wind Financial
• This analysis is for informational purposes only and should not be considered as investment advice. Please consult with a professional financial advisor before making any investment decisions.
• Past performance is not indicative of future results.