Fidelity® Nasdaq Composite Index® ETF (ONEQ)ONEQ

Fidelity® Nasdaq Composite Index® ETF (ONEQ) Summary:

Profile:

ONEQ is an ETF that seeks to track the Nasdaq Composite Index, providing diversified exposure to a broad range of large, mid, and small-cap companies listed on the Nasdaq Stock Market. It covers various sectors, including technology, healthcare, and consumer discretionary. ONEQ utilizes a passive management strategy, replicating the Index's holdings.

Objective:

The ETF aims to offer investors:

• Broad exposure: Participation in the Nasdaq Composite Index's performance.
• Diversification: Reduced risk by investing in a variety of companies across sectors.
• Cost-efficiency: Low expense ratio compared to actively managed funds.

Issuer:

• Fidelity Investments: A leading financial services company with a long history and strong reputation in the industry.
• Management: Experienced team with expertise in index tracking and portfolio management.

Market Share:

ONEQ holds a significant share within the Nasdaq Composite Index ETF segment, indicating its popularity and investor trust.

Total Net Assets:

ONEQ has over $20 billion in assets under management, reflecting its substantial size and investor interest.

Moat:

• Low fees: ONEQ's expense ratio is lower than many competing ETFs, making it a cost-effective option.
• Efficient tracking: The ETF closely tracks the Nasdaq Composite Index, minimizing tracking error.
• Liquidity: ONEQ enjoys high trading volume, ensuring ease of buying and selling shares.

Financial Performance:

ONEQ has historically delivered returns closely aligned with the Nasdaq Composite Index. It has outperformed the S&P 500 in recent years, reflecting the strong performance of technology stocks.

Benchmark Comparison:

ONEQ's performance closely matches the Nasdaq Composite Index, indicating effective tracking.

Growth Trajectory:

ONEQ is expected to continue growing alongside the Nasdaq Composite Index, benefiting from the continued growth of the technology sector.

Liquidity:

• Average Trading Volume: High volume ensures ease of trading.
• Bid-Ask Spread: Tight spread minimizes trading costs.

Market Dynamics:

ONEQ's performance is influenced by factors like:

• Technology sector growth: The ETF's largest holdings are tech companies, making it sensitive to sector performance.
• Interest rate changes: Rising rates could impact growth stocks, potentially affecting ONEQ.
• Economic conditions: Overall economic strength influences investor sentiment and market performance.

Competitors:

• IVV (iShares CORE S&P 500)
• VOO (Vanguard S&P 500 ETF)
• QQQ (Invesco QQQ Trust)

Expense Ratio:

ONEQ's expense ratio is 0.03%, making it one of the most affordable Nasdaq Composite Index ETFs.

Investment Approach and Strategy:

• Strategy: Passively track the Nasdaq Composite Index.
• Composition: Holds all stocks in the Index, with weights proportional to their market capitalization.

Key Points:

• Low-cost: Offers broad market exposure at a competitive price.
• Diversified: Reduces risk by investing in various sectors and companies.
• Passively managed: Requires minimal ongoing management, making it suitable for buy-and-hold investors.

Risks:

• Market volatility: The ETF's value can fluctuate significantly due to market movements.
• Sector concentration: Heavy exposure to the technology sector could lead to higher volatility compared to broader market ETFs.

Who Should Consider Investing:

ONEQ is suitable for investors seeking:

• Growth potential: Access to the high-growth potential of the Nasdaq Composite Index.
• Cost-effective diversification: Broad market exposure at a low expense ratio.
• Passive investment: A hands-off approach to investing in technology and other growth sectors.

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

ONEQ scores high due to its strong track record, low fees, and efficient management. Its primary risk is the inherent volatility associated with the technology sector.

Resources:

• Fidelity Investments: https://eresearch.fidelity.com/eresearch/evaluate/fundamentals/etf/summary.jhtml?symbols=ONEQ
• Morningstar: https://www.morningstar.com/etfs/arcx/oneq/quote

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