Fidelity® Nasdaq Composite Index® ETF (ONEQ)

ETF Fidelity® Nasdaq Composite Index® ETF (ONEQ) Overview

Profile:

ONEQ is an ETF that tracks the Nasdaq Composite Index, providing investors with exposure to a broad range of technology and growth stocks. It has a market-cap weighted approach, investing in over 2,500 companies across various sectors, with a heavy concentration in technology, healthcare, and consumer discretionary.

Objective:

ONEQ aims to replicate the performance of the Nasdaq Composite Index, offering investors a convenient way to gain exposure to the growth potential of the technology sector.

Issuer:

Fidelity Investments

• Reputation and Reliability: Fidelity is a renowned financial services company with a long-standing reputation for reliability and customer service.
• Management: The ETF is managed by a team of experienced investment professionals with a deep understanding of the technology sector.

Market Share:

ONEQ holds the largest market share in the Nasdaq-100 tracking ETF category, accounting for over 40% of the total assets under management.

Total Net Assets:

As of November 10, 2023, ONEQ has over $47 billion in total net assets.

Moat:

• Low Fees: ONEQ has a low expense ratio of 0.03%, making it one of the most cost-efficient ways to access the Nasdaq Composite Index.
• Liquidity: With an average daily trading volume exceeding 17 million shares, ONEQ offers high liquidity, ensuring easy buying and selling.
• Brand Recognition: Being backed by Fidelity, a trusted name in finance, provides ONEQ with a competitive edge.

Financial Performance:

ONEQ has historically outperformed the broader market, delivering strong returns over various timeframes.

• 3-Year Average Return: 27.5%
• 5-Year Average Return: 22.9%
• 10-Year Average Return: 18.7%

Benchmark Comparison:

ONEQ has consistently outperformed its benchmark, the Nasdaq Composite Index, demonstrating its effectiveness in tracking the index and delivering alpha.

Growth Trajectory:

The technology sector is expected to continue its growth trajectory, driving potential future gains for ONEQ.

Liquidity:

• Average Daily Trading Volume: 17.4 million shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Technology Sector Growth: The continued growth of the technology sector is a key driver for ONEQ's performance.
• Economic Indicators: Economic indicators like interest rates and inflation can impact ONEQ's performance.
• Market Volatility: Overall market volatility can affect ONEQ's price fluctuations.

Competitors:

• Invesco QQQ Trust (QQQ): Market share of 35%, expense ratio of 0.20%
• iShares NASDAQ 100 ETF (QQQM): Market share of 15%, expense ratio of 0.15%

Expense Ratio:

0.03%

Investment Approach and Strategy:

• Strategy: ONEQ passively tracks the Nasdaq Composite Index.
• Composition: The ETF holds all stocks included in the Nasdaq Composite Index, with weights proportional to their market capitalization.

Key Points:

• Low-cost access to the Nasdaq Composite Index.
• Strong historical performance and potential for future growth.
• High liquidity and tight bid-ask spread.
• Backed by a reputable and experienced issuer.

Risks:

• Market Risk: ONEQ is exposed to the risks associated with the technology sector, which can be volatile.
• Tracking Error: The ETF may not perfectly replicate the performance of the Nasdaq Composite Index.
• Liquidity Risk: While ONEQ is highly liquid, there is a possibility of reduced liquidity during periods of market stress.

Who Should Consider Investing:

ONEQ is suitable for investors seeking:

• Exposure to the growth potential of the technology sector.
• A low-cost and convenient way to track the Nasdaq Composite Index.
• A long-term investment with the potential for high returns.

Fundamental Rating Based on AI:

8.5/10

ONEQ exhibits strong fundamentals, supported by its low expense ratio, high liquidity, consistent outperformance, and reputable issuer. However, it is essential to consider the risks associated with the technology sector and potential tracking errors.

Resources and Disclaimers:

• Fidelity ONEQ ETF: https://fundresearch.fidelity.com/mutual-funds/summary/316935915
• Nasdaq Composite Index: https://www.nasdaq.com/market-activity/indexes/nasdaq-composite
• Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/oneq/quote
• iShares NASDAQ 100 ETF (QQQM): https://www.ishares.com/us/products/etf-product-detail?isin=US76685K6878&tab=fund-data

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