ETF Research Center

The Fidelity Low Volatility Factor ETF tracks an index of large-cap US stocks selected for low volatility of returns and earnings .

FUND BASICS
Category	US Equities
Fund Sponsor	Fidelity
Website	screener.fidelity.com
Inception date	Sep 12, 2016
Assets (mns)	$341
Currency	USD
Expense ratio	29 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	129
Wgt avg mkt cap (mns)	$211,340
Large cap (>$10bn)	92.0%
Mid cap ($2-10bn)	8.0%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	21.8 %
MICROSOFT CORP	4.7 %
ALPHABET INC. CLASS A	2.9 %
BERKSHIRE HATHAWAY INC-CL B	2.2 %
JOHNSON & JOHNSON	2.0 %
FACEBOOK	1.8 %
VISA INC-CLASS A SHARES	1.8 %
INTEL CORP	1.7 %
UNITEDHEALTH GROUP INC	1.6 %
MASTERCARD INC-CLASS A	1.6 %
HOME DEPOT INC	1.5 %

TOP COUNTRY EXPOSURE
	UNITED STATES	92.0 %
	IRELAND	2.4 %
	BERMUDA	2.3 %
	BRITAIN	1.3 %
	SWITZERLAND	0.9 %
	ISRAEL	0.8 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
28.6%	17.8%	--	--	15.8%

Market Correlations
versus...	Beta	R-squared
S&P500	0.80	93%
MSCI EAFE	0.67	55%
MSCI Emg. Mkts.	0.45	39%

Technical Indicators
Recent close	$37.91
30d moving avg.	$37.47
Annualized volatility	10.0%
Short interest (ETF)	0.1%
Relative strength (RSI)	67

Liquidity measures
Avg. volume (thou.)	82
Turnover	0.9%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$48,428

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Fidelity Low Volatility Factor ETF based on the alternatives' overlap in portfolio holdings with FDLO. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FDLO

Expense:

29 bp

ALTAR Score™:

5.4%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FDLO
Ticker	Fund Name	Overlap¹ vs FDLO (%)	Expense ratio (bp)	Savings vs FDLO (bp)	ALTAR Score™ (%)	ALTAR vs FDLO (%)
USMV	iShares MSCI USA Minimum Volatility	53.0	15	14	5.2	-0.2
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	52.0	19	10	5.6	+0.3
LVUS	Hartford Multifactor Low Volatility US Equity	49.5	21	8	5.8	+0.5
QUS	SPDR MSCI USA Quality Mix	48.9	15	14	6.0	+0.6
LGLV	SPDR Russell 1000 Low Volatility	48.9	12	17	5.2	-0.1
IWL	iShares Russell Top 200	48.1	15	14	5.7	+0.3
FQAL	Fidelity Quality Factor	47.8	29	0	5.8	+0.4
MGC	Vanguard Mega Cap 300 ETF	46.7	7	22	5.8	+0.5
OEF	iShares S&P 100	46.5	20	9	5.5	+0.1
FLLV	Franklin Liberty U.S. Low Volatility	45.9	29	0	5.3	-0.1
SPYG	SPDR Portfolio S&P 500 Growth	45.7	4	25	5.1	-0.3
VOOG	Vanguard S&P 500 Growth	45.5	15	14	5.0	-0.4
PRID	InsightShares LGBT Employment Equality	45.5	65	-36	5.4	0.0
OMOM	Invesco Russell 1000 Momentum Factor ETF	45.5	19	10	5.3	-0.1
IVW	iShares S&P 500 Growth	45.5	18	11	4.9	-0.4
SPXN	ProShares S&P 500 Ex-Financials	45.3	27	2	5.9	+0.6
JQUA	JPMorgan U.S. Quality Factor	44.6	12	17	5.8	+0.5
FDMO	Fidelity Momentum Factor	44.5	29	0	4.1	-1.2
DYNF	BlackRock U.S. Equity Factor Rotation	44.3	30	-1	6.5	+1.1
IUSG	iShares Core U.S. Growth	44.0	4	25	5.1	-0.3

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Fidelity Low Volatility Factor
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	18.1	%
Divided by: Fwd. P/BV	3.2	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	5.4	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.53	CATEGORY AVERAGE	1.56

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.