FDRV Profile
The Fidelity Electric Vehicles and Future Transportation ETF is designed to offer investors exposure to the rapidly evolving global market for electric and autonomous vehicles, as well as the broader ecosystem that supports this transformative industry. The fund typically allocates at least 80% of its assets to securities that are part of the index, as well as to depositary receipts representing those securities. This index is specifically crafted to track companies worldwide that are at the forefront of the electric and autonomous vehicle revolution, encompassing a wide range of market capitalizations. These companies are involved in the production of vehicles, components, technology, energy systems, and other innovative solutions aimed at reshaping the future of transportation.
The ETF's investment strategy focuses on capturing the growth potential of a diverse array of companies that are integral to the shift towards electric and autonomous vehicles. This includes not only manufacturers of these vehicles but also suppliers of critical components, such as batteries and semiconductors, and developers of cutting-edge technologies like advanced driver-assistance systems (ADAS) and vehicle connectivity. Additionally, the fund invests in companies that are pioneering new energy solutions, including those focused on electric vehicle charging infrastructure and renewable energy integration, which are essential for supporting the widespread adoption of electric vehicles.
Given the fund’s global scope, it provides investors with broad geographic diversification, offering exposure to leading companies from different regions, including North America, Europe, and Asia. This international approach allows the fund to capitalize on the varying levels of innovation and market development occurring across the globe. The non-diversified nature of the fund, however, means that it may be more concentrated in specific sectors or companies, which could lead to higher volatility compared to more diversified funds. Nonetheless, this concentration is also what allows the fund to stay closely aligned with the dynamic and fast-growing electric vehicle and future transportation sectors.
The Fidelity Electric Vehicles and Future Transportation ETF is particularly well-suited for investors who are looking to position their portfolios to benefit from the long-term trends driving the shift towards sustainable and autonomous transportation. By investing in this fund, investors can gain targeted exposure to companies that are leading the charge in one of the most significant industrial transformations of our time. This ETF offers the potential for substantial growth as the global transportation landscape continues to evolve, making it an attractive option for those with a forward-looking investment strategy.
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