Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Fidelity Value Factor ETF (FVAL Quick QuoteFVAL - Free Report) , a passively managed exchange traded fund launched on September 12, 2016.

The fund is sponsored by Fidelity. It has amassed assets over $1.09 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Large cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.71%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 31% of the portfolio. Financials and Industrials round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.41% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

The top 10 holdings account for about 40.57% of total assets under management.

Performance and Risk

FVAL seeks to match the performance of the Fidelity U.S. Value Factor Index before fees and expenses. The Fidelity U.S. Value Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies that have attractive valuations.

The ETF has lost about 3.43% so far this year and is up roughly 18.5% in the last one year (as of 03/24/2026). In the past 52-week period, it has traded between $52.80 and $74.40.

The ETF has a beta of 0.96 and standard deviation of 14.07% for the trailing three-year period. With about 129 holdings, it effectively diversifies company-specific risk.

Alternatives

Fidelity Value Factor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FVAL is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $83.60 billion in assets, Vanguard Value Index Fund ETF Shares has $164.44 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.