FVAL - FVAL: A Value ETF That Piggybacks Off Growth

2024-02-04 05:25:57 ET

Summary

• The Fidelity Value Factor ETF has outperformed segment benchmark ETFs in recent years through an alternative indexing strategy.
• We highlight that the fund includes a large concentration in 5 mega-cap "Mag 7" names that are more commonly associated with growth.
• The fund may continue to deliver positive returns, but may not have the type of value exposure investors are seeking.

The Fidelity Value Factor ETF ( FVAL ) is intended to offer targeted exposure to a portfolio of attractively priced U.S. companies screened through a rules-based strategy. Impressively, FVAL has outperformed several benchmark "value" ETFs since its fund inception data back in 2016, including through the ongoing rally that has lifted shares to an all-time high....

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