FQAL: FIDELITY QUALITY FACTOR ETF
FQAL: Fidelity Quality Factor ETF Report
The Fidelity Quality Factor ETF (ticker: FQAL) is an exchange-traded fund designed to invest in a variety of companies. Based on its recent performance, this ETF has focused on share-price growth while also providing some cash income to investors.
What the numbers show
The numbers for FQAL show that both the share price and the total value of the investment have grown over the last year.
To understand how the price has changed, we can look at an estimated example. If you had invested $10,000 based on the estimated price from roughly one year ago ($74.69), your investment's share price would have grown to approximately $84.96 today.
It is important to understand two different types of returns:
• Price Return: This measures only the change in the share price. The one-year price return for FQAL was approximately 13.75%.
• Total Return: This includes both the share-price change and any cash distributions paid out. The one-year total return was higher, at approximately 15.17%.
Over a longer period, the three-year total return was approximately 76.52%.
Income and distribution explanation
FQAL provides cash payments to investors, known as distributions. The current distribution yield is approximately 1.14%. These payments usually happen on a quarterly basis (four times a year).
When looking at these numbers, remember that the distribution yield is not the same as the total return. The yield tells you how much cash was paid out relative to the ETF's price, but it does not account for how much the share price itself went up or down.
NAV erosion explanation
Some investors look for "NAV erosion," which is when the actual value of the fund's underlying assets declines. 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, looking at price-based evidence, the ETF has an erosion-risk score of 100, which is labeled as "No price erosion detected." The erosion severity is described as "good."
Pros
• Strong Growth: The ETF has shown significant positive returns in both its one-year and three-year price and total return measurements.
• Low Price Risk: The data shows no signs of recent price erosion.
• Well-Known Holdings: The fund invests in large, well-known companies.
Cons
• Lower Yield: Compared to some other types of funds, the 1.14% distribution yield is relatively low for investors seeking high immediate income.
Top Holdings
The following are the largest companies in the portfolio (note that holdings can change over time):
• NVIDIA Corp: 8.34%
• Apple Inc: 7.31%
• Microsoft Corp: 5.87%
• Alphabet Inc Class A: 4.65%
• Fidelity Cash Central Fund: 3.55%
• Broadcom Inc: 2.82%
• Micron Technology Inc: 2.45%
• Meta Platforms Inc Class A: 2.39%
• JPMorgan Chase & Co: 1.74%
• Eli Lilly and Co: 1.56%
Beginner takeaway
FQAL is an ETF that has recently seen its share price increase significantly. While it does pay out cash distributions, the main driver of its recent performance has been the growth in the share price itself.
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 | 8.34% |
| 2 | APPLE INC | AAPL | 7.31% |
| 3 | MICROSOFT CORP | MSFT | 5.87% |
| 4 | ALPHABET INC CLASS A | GOOGL | 4.65% |
| 5 | FIDELITY CASH CENTRAL FUND | n/a | 3.55% |
| 6 | BROADCOM INC | AVGO | 2.82% |
| 7 | MICRON TECHNOLOGY INC | MU | 2.45% |
| 8 | META PLATFORMS INC CLASS A | META | 2.39% |
| 9 | JPMORGAN CHASE & CO | JPM | 1.74% |
| 10 | ELI LILLY AND CO | LLY | 1.56% |