ETF Research Center

The Fidelity Quality Factor ETF tracks an index of fundamentally- selected large and mid- cap US companies that are weighted according to a tiered scheme.

FUND BASICS
Category	US Equities
Fund Sponsor	Fidelity
Website	screener.fidelity.com
Inception date	Sep 12, 2016
Assets (mns)	$166
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	127
Wgt avg mkt cap (mns)	$287,573
Large cap (>$10bn)	92.4%
Mid cap ($2-10bn)	7.6%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	25.2 %
MICROSOFT CORP	5.2 %
APPLE INC	5.2 %
ALPHABET INC. CLASS A	3.2 %
JOHNSON & JOHNSON	2.1 %
FACEBOOK	1.9 %
VISA INC-CLASS A SHARES	1.7 %
MASTERCARD INC-CLASS A	1.6 %
HOME DEPOT INC	1.5 %
ABBVIE INC	1.5 %
PROCTER & GAMBLE CO/THE	1.4 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.6 %
	IRELAND	1.0 %
	BERMUDA	0.8 %
	ISRAEL	0.6 %
	BRITAIN	0.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
0.1%	18.7%	--	--	14.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.95	98%
MSCI EAFE	0.83	62%
MSCI Emg. Mkts.	0.56	48%

Technical Indicators
Recent close	$39.52
30d moving avg.	$38.57
Annualized volatility	11.6%
Short interest (ETF)	0.2%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	32
Turnover	0.8%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$61,183

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FQAL

Expense:

29 bp

ALTAR Score™:

5.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FQAL
Ticker	Fund Name	Overlap¹ vs FQAL (%)	Expense ratio (bp)	Savings vs FQAL (bp)	ALTAR Score™ (%)	ALTAR vs FQAL (%)
OQAL	Invesco Russell 1000 Quality Factor ETF	55.3	19	10	6.0	+0.5
JQUA	JPMorgan U.S. Quality Factor	55.1	12	17	5.6	+0.1
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	54.0	19	10	6.6	+1.1
OEF	iShares S&P 100	49.7	20	9	5.2	-0.3
RECS	Columbia Research Enhanced Core	49.1	15	14	5.9	+0.4
IWL	iShares Russell Top 200	48.8	15	14	5.3	-0.2
FDLO	Fidelity Low Volatility Factor	48.0	29	0	5.0	-0.5
MGC	Vanguard Mega Cap 300 ETF	47.5	7	22	5.5	-0.1
SPXN	ProShares S&P 500 Ex-Financials	46.7	27	2	5.5	-0.0
PLC	Principal U.S. Large-Cap Multi-Factor Core Index	46.3	15	14	5.3	-0.2
JUST	Goldman Sachs JUST U.S. Large Cap Equity	45.0	20	9	5.2	-0.3
PBP	Invesco S&P 500 Buy/Write	44.9	49	-20	5.2	-0.3
IQSU	IQ Candriam ESG US Equity ETF	44.7	9	20	5.4	-0.1
XLG	Invesco S&P Top 50	44.7	20	9	4.9	-0.6
DIVB	iShares U.S. Dividend & Buyback	44.3	25	4	6.5	+1.0
IWY	iShares Russell Top 200 Growth	44.3	20	9	4.6	-0.9
HSPX	Global X S&P 500 Covered Call	44.3	65	-36	5.0	-0.5
SPXV	ProShares S&P 500 Ex-Health Care	44.2	27	2	5.3	-0.2
SPY	S&P 500 SPDR	44.1	9	20	5.6	+0.0
IVV	iShares Core S&P 500	44.1	4	25	5.6	+0.1

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

	2015	2016	2017	2018	2019	2020E	2021E
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

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Fidelity Quality 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	25.3	%
Divided by: Fwd. P/BV	4.4	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	5.5	%

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.