FPRO Profile
The Fidelity Real Estate Investment ETF is an actively managed exchange-traded fund (ETF that leverages an exemptive order from the Securities and Exchange Commission (SEC), which allows it to withhold detailed portfolio holdings from daily public disclosure. This strategy provides the fund with flexibility in its investment approach and the ability to implement tactical changes without immediate public scrutiny.
The fund is designed to invest primarily in securities of companies that are significantly involved in the real estate industry. This includes investments in real estate investment trusts (REITs), real estate development firms, and other entities engaged in real estate-related activities. By allocating at least 80% of its assets to these sectors, the fund aims to capitalize on opportunities within the real estate market, which encompasses a diverse range of assets from residential and commercial properties to industrial real estate.
The fund's investment strategy covers both domestic and international markets, providing exposure to real estate companies around the globe. This global approach allows the fund to tap into a broad spectrum of real estate opportunities and geographic regions, potentially enhancing diversification and return prospects. However, the focus on real estate-related investments means that the fund is susceptible to sector-specific risks and market conditions.
As a non-diversified fund, the Fidelity Real Estate Investment ETF may have concentrated holdings within the real estate sector, which can lead to higher volatility compared to more broadly diversified funds. The actively managed nature of the ETF allows the fund manager to adjust the portfolio dynamically in response to market trends and opportunities, aiming to maximize returns while navigating sector-specific challenges and risks.
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