FIVA Profile
The Fidelity International Value Factor ETF is strategically positioned to capture the performance of undervalued international stocks with strong growth potential. Under normal market conditions, the fund commits at least 80% of its assets to securities included in the Fidelity International Value Factor Index. This index is tailored to reflect the performance of large- and mid-capitalization companies from developed markets outside the United States, focusing on those with appealing valuation metrics.
The Fidelity International Value Factor Index targets companies that are considered undervalued based on a range of financial metrics, including price-to-earnings ratios, price-to-book ratios, and other value-oriented criteria. By emphasizing stocks that trade at lower multiples relative to their fundamentals, the index aims to provide exposure to firms with potential for significant capital appreciation. The fund's strategy is to invest in these value stocks while seeking to benefit from market corrections that may favor undervalued equities.
In addition to direct investments in the index's component securities, the fund may also invest in depositary receipts that represent these securities, enhancing its ability to achieve broad international exposure. This investment approach allows the fund to tap into a diverse array of global markets and sectors, focusing on companies that are undervalued relative to their peers. By doing so, the fund aims to deliver long-term growth potential while mitigating risks associated with high valuations.
Investors in the Fidelity International Value Factor ETF gain access to a globally diversified portfolio of value stocks, providing an opportunity to capitalize on market inefficiencies and undervalued opportunities in developed international markets. However, investing in international equities entails risks such as currency fluctuations, geopolitical events, and economic instability in foreign markets. Therefore, the fund is best suited for investors seeking exposure to undervalued international companies with the potential for long-term capital growth.
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