Fidelity Value Factor ETF Performance Overview and Analysis

Fidelity Value Factor ETF (FVAL) aims to provide investors exposure to large cap value stocks. Currently facing a 4.44% decline this year, investors should consider performance drivers and the competitive landscape in ETF offerings.

Date: 15-03-2025

AI Rating: 5

Overview of FVAL: The Fidelity Value Factor ETF (FVAL) is designed to deliver exposure to the Style Box - Large Cap Value market, with a current asset base exceeding $949 million. Managed by Fidelity, FVAL utilizes a smart beta strategy to outperform typical market indices.

Performance Metrics: The fund has experienced a loss of approximately -4.44% year-to-date and a 6.83% increase over the past year, indicating mixed performance trends. The fund has traded in a range between $54.50 and $65 during the last 52 weeks.

Top Holdings and Sector Exposure: The fund is heavily weighted towards the Information Technology sector at 28.60%, with major allocations to significant companies like Apple Inc (AAPL) at 6.77%, Nvidia Corp (NVDA), and Microsoft Corp (MSFT). These holdings are critical as they can impact overall performance based on their individual stock price movements.

Cost Efficiency: An important consideration for investors, FVAL’s annual operating expense is 0.16%, categorizing it as one of the more cost-effective ETFs in the market which could enhance total returns compared to more expensive options.

Market Context and Alternatives: Although FVAL has shown some challenges in performance recently, it positions itself as a viable option against other ETFs like Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV) which boast larger asset bases and potentially lower expense ratios.

In conclusion, while FVAL's 6.83% growth over the last year is commendable, the recent annual loss in value may deter investors. Hence, the overall sentiment leans towards cautious optimism.

Stocks: AAPL MSFT NVDA