What this ETF is trying to do

The Fidelity Disruptive Finance ETF (FDFF) is an exchange-traded fund designed to invest in companies involved in disruptive finance. This means it focuses on businesses that are changing how money and financial services work. The fund holds a total of 51 different holdings.

Top Holdings

According to the most recent data, some of the largest companies in this portfolio include:

• BlackRock Inc (5.86%)

• Capital One Financial Corp (5.41%)

• Bankinter SA (4.77%)

• Visa Inc Class A (4.72%)

• DBS Group Holdings Ltd (4.67%)

• Mastercard Inc Class A (4.60%)

• FinecoBank SpA (4.20%)

• Chime Financial Inc (4.03%)

• Toast Inc Class A (4.02%)

• Block Inc Class A (4.01%)

Please note that this is a partial list of the largest holdings and can change over time.

What the numbers show

When looking at how FDFF has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes distributions).

• Year-to-Date (YTD): The price return is -0.53%, while the total return is 0.38%.

• One-Year: The price return was -2.44%, while the total return was -1.41%.

• Three-Year: The price return was 42.70%, while the total return was 46.63%.

An estimated price from roughly one year ago was $36.32. The current price is $35.43.

Income and distribution explanation

FDFF provides some cash income to investors through distributions. The distribution yield is approximately 0.99%. This number describes the cash paid out relative to the ETF's price. The fund usually pays these distributions on a quarterly basis, with 4 payments made over the last 12 months.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, we can look at the erosion-risk score. FDFF has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Pros

• The fund has shown strong three-year total returns of approximately 46.63%.

• The erosion-risk measurements suggest the price trend is relatively stable.

Cons

• The one-year price return and total return have both been negative.

• The distribution yield is relatively low, with an income rating grade of "C."

Beginner takeaway

FDFF focuses on the changing world of finance. While it has seen significant growth over a three-year period, its performance over the last year has been negative. Investors interested in income should note that while it pays quarterly distributions, the yield is modest. Always remember that price changes and cash distributions are two different parts of an investment's performance.