FDMO Profile
The Fidelity Momentum Factor ETF is strategically structured to capitalize on market trends by focusing on U.S. equities that exhibit strong momentum characteristics. The fund invests at least 80% of its assets in securities that are part of the Fidelity U.S. Momentum Factor Index. This index tracks the performance of large- and mid-cap U.S. companies demonstrating significant positive momentum signals, which are indicative of sustained upward price trends.
The core strategy of the ETF revolves around selecting stocks with robust momentum factors, aiming to harness the potential for higher returns associated with trending equities. Momentum investing involves identifying stocks that have shown a tendency to perform well in recent periods, based on their price movements and other technical indicators. By focusing on such momentum-driven stocks, the ETF seeks to deliver superior performance relative to broader market indices.
In addition to its primary investment approach, the Fidelity Momentum Factor ETF may also participate in securities lending. This practice involves temporarily lending out securities held by the fund to other financial institutions in exchange for a fee. The income generated from these lending activities is reinvested to enhance the fund's returns. This additional revenue can contribute to the overall performance of the ETF, providing potential benefits to investors.
Overall, the Fidelity Momentum Factor ETF is designed for investors who seek to benefit from upward market trends and capitalize on momentum within the U.S. equity market. By concentrating on high-momentum stocks and employing securities lending to optimize returns, the fund aims to offer a dynamic investment solution. This ETF is well-suited for investors looking to tap into growth opportunities driven by market momentum while seeking to enhance returns through additional income-generating strategies.
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