FDMO: FIDELITY MOMENTUM FACTOR ETF
What this ETF is trying to do
The FIDELITY MOMENTUM FACTOR ETF (ticker: FDMO) is an exchange-traded fund designed to follow a momentum strategy. While the specific details of its strategy are not provided, momentum investing generally focuses on stocks that have shown strong recent price movement. This ETF holds a variety of companies, including major names in technology and healthcare.
Top Holdings
Based on the most recent data, here are some of the largest companies held by this ETF:
• NVIDIA CORP (8.08%)
• APPLE INC (7.47%)
• ALPHABET INC CLASS A (5.46%)
• AMAZON.COM INC (3.67%)
• MICRON TECHNOLOGY INC (2.64%)
• ADVANCED MICRO DEVICES INC (2.18%)
Please note that this list is partial and only shows the largest holdings. The actual portfolio can change over time.
What the numbers show
The data shows that FDMO has experienced significant growth in its share price over different time periods.
• Year-to-Date (YTD): The price return is approximately 15.42%. When including distributions, the YTD total return is approximately 15.98%.
• One-Year: The price return was approximately 16.51%, while the total return was approximately 17.27%.
• Three-Year: The price return was approximately 106.72%, and the total return was approximately 111.51%.
To understand the price change, we can look at an estimated price from roughly one year ago, which was $83.18. The current price is $96.91.
It is important to distinguish between price return and total return. Price return only measures how much the share price moved. Total return includes both the price movement and any cash distributions paid out to investors.
Income and distribution explanation
FDMO provides some level of cash income through distributions. The current distribution yield is approximately 0.60%. This means the amount of cash paid out is about 0.60% of the ETF's current price.
The fund usually pays distributions on a quarterly basis. Over the last 12 months, there were 4 payouts. The trailing distributions (the total cash paid out per share over the last year) were $0.586.
NAV erosion explanation
Some investors look for "NAV erosion," which is when the value of the underlying assets in a fund decreases over time. 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.
Regarding price erosion, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Pros
• Strong Price Growth: The ETF has shown high price returns over the one-year and three-year periods.
• Positive Total Returns: The total returns are higher than the price returns, showing that distributions have added to the overall value.
• Low Erosion Risk: The data indicates no detected price erosion.
Cons
• Lower Yield: The distribution yield is relatively low at approximately 0.60%.
• Concentration: The top few holdings make up a significant portion of the fund.
Beginner takeaway
FDMO is an ETF that has shown strong price and total returns over the last few years. It provides a small amount of quarterly income, but its main performance driver appears to be the increase in share price. Because it has a "good" erosion score and no severe risk flags, the data shows the share price has been growing rather than steadily declining.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | NVIDIA CORP | NVDA | 8.08% |
| 2 | APPLE INC | AAPL | 7.47% |
| 3 | ALPHABET INC CLASS A | GOOGL | 5.46% |
| 4 | AMAZON.COM INC | AMZN | 3.67% |
| 5 | MICRON TECHNOLOGY INC | MU | 2.64% |
| 6 | ADVANCED MICRO DEVICES INC | AMD | 2.18% |
| 7 | ELI LILLY AND CO | LLY | 1.77% |
| 8 | JPMORGAN CHASE & CO | JPM | 1.74% |
| 9 | BERKSHIRE HATHAWAY INC CLASS B | BRK-B | 1.69% |
| 10 | LAM RESEARCH CORP | LRCX | 1.68% |