FLRG: FIDELITY U.S. MULTIFACTOR ETF
What this ETF is trying to do
The Fidelity U.S. Multifactor ETF (ticker: FLRG) is an exchange-traded fund that invests in different types of stocks in the United States. While we only have a partial list of what it owns, the fund holds 103 different investments in total. Some of its largest holdings include companies like NVIDIA Corp, Apple Inc, Microsoft Corp, and Alphabet Inc Class A. Because this is a "multifactor" ETF, it uses specific rules to pick these companies.
What the numbers show
The current price of one share of FLRG is $42.04. To see how the price has changed, we can look at an estimated price from roughly one year ago, which was about $38.21.
When looking at performance, it is important to understand two different numbers: price return and total return.
• Price return only tracks how much the share price itself went up or down.
• Total return includes both the price change and any extra cash (distributions) paid to investors.
Here is what the data shows for FLRG:
• One-Year: The price return was approximately 10.03%, while the total return was higher at approximately 11.71%.
• Year-to-Date (YTD): The price return has been about 10.79%, and the total return has been about 11.92%.
• Three-Year: The price return was approximately 62.36%, and the total return was approximately 69.52%.
Income and distribution explanation
Some investors look for ETFs that pay them cash regularly. This cash is called a distribution. FLRG has a distribution yield of approximately 1.40%. This means the amount of cash paid out is 1.40% of the ETF's price.
The fund usually pays these distributions quarterly (four times a year). Over the last 12 months, it made four payments. While these payments provide cash, they are not the same as total return, and a high yield does not guarantee that your original investment will stay the same value.
NAV erosion explanation
"NAV erosion" is a term used to describe when the actual value of the assets inside an ETF drops significantly over time. If an ETF has a "severe erosion-risk flag," it means there are signs that the fund's value might be struggling.
For FLRG, the erosion-risk score is 100, and the label says "No price erosion detected." This means the fund's price movement is considered to be in good health according to this measurement.
Pros
• Positive Returns: The ETF has shown positive price returns and total returns over one, three, and five-year periods.
• Healthy Score: There is no detected price erosion.
• Diversification: The fund holds over 100 different investments.
Cons
• Lower Yield: For investors who only want high cash income, the 1.40% distribution yield may be considered low.
• Partial Data: The list of holdings provided is only a partial list of the largest companies in the fund.
Beginner takeaway
When studying FLRG, remember that the share price and the total return are different. The total return is often higher because it counts the cash distributions you receive. Also, while this fund has shown growth in the past, keep in mind that past performance does not guarantee what will happen in the future.
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 | 7.62% |
| 2 | APPLE INC | AAPL | 6.95% |
| 3 | MICROSOFT CORP | MSFT | 5.16% |
| 4 | ALPHABET INC CLASS A | GOOGL | 5.04% |
| 5 | FIDELITY CASH CENTRAL FUND | n/a | 3.36% |
| 6 | BROADCOM INC | AVGO | 2.48% |
| 7 | MICRON TECHNOLOGY INC | MU | 1.93% |
| 8 | EXXONMOBIL HOLDINGS CORP | XOM | 1.67% |
| 9 | VISA INC CLASS A | V | 1.67% |
| 10 | JOHNSON & JOHNSON | JNJ | 1.59% |