FVAL Profile
The Fidelity Value Factor ETF is strategically designed to target U.S. stocks with attractive valuation metrics by investing in the Fidelity U.S. Value Factor Index. Under normal market conditions, the fund commits at least 80% of its assets to securities that are included in this index. The index itself is tailored to reflect the performance of large and mid-capitalization U.S. companies that are deemed to offer value relative to their peers. This focus on value investing aims to capture the potential for higher returns from stocks that are undervalued or trading below their intrinsic value.
The Fidelity U.S. Value Factor Index employs a rigorous methodology to identify and select stocks based on various valuation criteria, including price-to-earnings ratios, price-to-book ratios, and dividend yields. By emphasizing these value characteristics, the index aims to represent companies that are considered undervalued compared to their historical averages or industry benchmarks. The ETF's investment strategy is thus oriented towards acquiring equities that exhibit potential for long-term appreciation, driven by fundamental value metrics.
In addition to its core investment strategy, the fund may engage in securities lending to generate additional income. This process involves lending out securities held in the fund's portfolio to other financial institutions, with the intention of earning lending fees that contribute to the fund's overall return. This supplementary income stream helps enhance the fund's performance, while maintaining its primary focus on value-oriented investments.
The Fidelity Value Factor ETF is suitable for investors seeking exposure to a diversified portfolio of undervalued U.S. equities, with a focus on large and mid-cap companies. Its value-centric approach aims to identify stocks that offer potential for capital appreciation based on their attractive valuations. By leveraging the Fidelity U.S. Value Factor Index and employing additional income-generating strategies, the fund seeks to provide investors with a balanced investment option that aligns with value investing principles.
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