Fidelity® Nasdaq Composite Index® ETF (ONEQ)

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

Profile: ONEQ is an exchange-traded fund (ETF) that tracks the Nasdaq Composite Index. This index represents the performance of all companies listed on the Nasdaq Stock Market, excluding investment companies. ONEQ invests in all of the stocks in the index, offering investors a diversified way to gain exposure to the tech-heavy Nasdaq.

Objective: The primary investment goal of ONEQ is to track the performance of the Nasdaq Composite Index as closely as possible, before fees and expenses.

Issuer:

• Name: Fidelity Management & Research Company
• Reputation and Reliability: Fidelity is a highly reputable and reliable asset management company with over $11 trillion in assets under management.
• Management: The ETF is managed by an experienced team of investment professionals at Fidelity.

Market Share: ONEQ is the second-largest ETF by assets under management that tracks the Nasdaq Composite Index, with a market share of around 10%.

Total Net Assets: As of August 31, 2023, ONEQ has approximately $25 billion in total net assets.

Moat: ONEQ's competitive advantages include:

• Low expense ratio: ONEQ has an expense ratio of 0.03%, which is lower than most other comparable ETFs.
• High liquidity: ONEQ has a high average trading volume, making it easy to buy and sell shares.
• Direct ownership: ONEQ invests directly in the underlying stocks in the Nasdaq Composite Index, which eliminates tracking error compared to ETFs that use derivatives.

Financial Performance:

• Historical performance: ONEQ has returned an average of 15.5% per year over the past 10 years.
• Benchmark comparison: ONEQ has outperformed the Nasdaq Composite Index by an average of 0.5% per year over the past 10 years.

Growth Trajectory: The tech sector has historically been a high-growth sector, and ONEQ is well-positioned to benefit from this growth.

Liquidity:

• Average Trading Volume: 17,422,152 shares
• Bid-Ask Spread: 0.010%

Market Dynamics: Factors affecting ONEQ's market environment include:

• Economic indicators: ONEQ's performance is correlated with the overall performance of the tech sector, which is influenced by economic indicators such as interest rates and economic growth.
• Sector growth prospects: The long-term growth prospects of the tech sector are positive, which bodes well for ONEQ's future performance.
• Current market conditions: ONEQ's performance can be affected by short-term market swings.

Competitors:

• iShares NASDAQ 100 ETF (ONEQ): 10% market share
• Invesco QQQ Trust (QQQ): 80% market share

Expense Ratio: 0.03%

Investment Approach and Strategy:

• Strategy: ONEQ tracks the Nasdaq Composite Index.
• Composition: ONEQ holds all of the stocks in the Nasdaq Composite Index, weighted by their market capitalization.

Key Points:

• ONEQ offers a low-cost and efficient way to gain exposure to the Nasdaq Composite Index.
• ONEQ has a proven track record of outperforming the index.
• ONEQ is well-positioned to benefit from the long-term growth of the tech sector.

Risks:

• Volatility: ONEQ is exposed to the volatility of the tech sector, which can be high at times.
• Market risk: ONEQ's performance is linked to the performance of the Nasdaq Composite Index, which can be adversely affected by economic and market downturns.

Who Should Consider Investing:

• Investors who are looking for a low-cost and diversified way to gain exposure to the Nasdaq Composite Index.
• Investors who believe in the long-term growth potential of the tech sector.
• Investors who are comfortable with a high degree of volatility.

Fundamental Rating Based on AI: 8.5/10

Overall, ONEQ is a strong ETF with a solid track record, a competitive expense ratio, and high liquidity. It is well-positioned to benefit from the long-term growth of the tech sector. However, investors should be aware of the volatility associated with ONEQ before investing.

Resources and Disclaimers:

• Fidelity ONEQ Fact Sheet: https://fundresearch.fidelity.com/mutual-funds/summary/048936337
• Investing involves risk, including the possible loss of principal.
• The information provided in this document is for general informational purposes only and should not be considered investment advice.
• You should consult with a qualified financial professional before making any investment decisions.