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Fidelity Value Factor ETF (FVAL) Hits a 52-Week High
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For investors looking for momentum, Fidelity Value Factor ETF (FVAL - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 66.9% from its 52-week low price of $23.89/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
FVAL in Focus
The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity U.S. Value Factor Index. FVAL normally invests at least 80% of assets in securities included in the Fidelity U.S. Value Factor Index, which is designed to reflect the performance of stocks of large and mid-capitalization U.S. companies that have attractive valuations. It has AUM of $248.90 million and charges 29 basis points (bps) in annual fees.
Why the Move?
Value stocks seek to capitalize on the inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with growth and blend counterparts. The introduction of a coronavirus vaccine will help in combatting the pandemic, supporting the economy recovery and boosting consumer spending and thus, lifting value stocks. Moreover, value securities have had a tough time this year as slow growth and lower yields prompted investors’ shift to fast-growing stocks, especially from the technology sector. As such, value stocks are cheaper than growth ones at the current valuation. This is making funds like FVAL an attractive investment option.
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Fidelity Value Factor ETF (FVAL) Hits a 52-Week High
For investors looking for momentum, Fidelity Value Factor ETF (FVAL - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 66.9% from its 52-week low price of $23.89/share.
Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
FVAL in Focus
The fund seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity U.S. Value Factor Index. FVAL normally invests at least 80% of assets in securities included in the Fidelity U.S. Value Factor Index, which is designed to reflect the performance of stocks of large and mid-capitalization U.S. companies that have attractive valuations. It has AUM of $248.90 million and charges 29 basis points (bps) in annual fees.
Why the Move?
Value stocks seek to capitalize on the inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with growth and blend counterparts. The introduction of a coronavirus vaccine will help in combatting the pandemic, supporting the economy recovery and boosting consumer spending and thus, lifting value stocks. Moreover, value securities have had a tough time this year as slow growth and lower yields prompted investors’ shift to fast-growing stocks, especially from the technology sector. As such, value stocks are cheaper than growth ones at the current valuation. This is making funds like FVAL an attractive investment option.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 14.90, which gives cues of further rally.
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