FDLO ETF

FDLO invests in around 130 large-cap U.S. stocks that have low volatility, aiming to balance returns and risks while keeping costs low at 0.15%. The fund has a strong focus on technology companies like Apple, Microsoft, Alphabet, and Amazon, which enhances its growth prospects over time. Additionally, FDLO provides better protection against losses compared to the overall market, especially during downturns, because of its emphasis on low volatility and value stocks.

FDLO shows strong performance with a well-managed portfolio that has lower volatility than the overall stock market. It is a good option for long-term investment because it offers growth potential while reducing risks from more unstable sectors. However, its significant investment in technology could be a concern right now, as investors are starting to pull back on their optimistic views of leading companies.

Low volatility ETFs may help preserve profits and shield against market fluctuations. On Monday, Wall Street's well-known indicator of expected stock market volatility saw its biggest intraday increase ever.

Fidelity Low Volatility Factor ETF is invested in 125 stocks with relatively low historical volatility of prices and earnings. Since its inception, the FDLO ETF has lagged the S&P 500 index, but outperformed other low-volatility ETFs. FDLO risk-adjusted returns compared to the benchmark are unconvincing, but its track record is too short to assess its long-term potential.

FDLO: Simplicity, Cost, Performance Make This ETF A Buy

Factor ETFs hit the ETF market over the last decade, offering a way to seek outperformance and/or manage risk better than broader indexes by targeting stocks that display specific traits or characteristics. In an ever-growing ETF ecosystem, factor strategies could potentially play a significant role for investors shifting their portfolios towards ETFs.

Is now the time to revisit volatility as a key investing metric? Economic and political factors in the U.S. and globally may add to interest in a fund like the Fidelity Low Volatility Factor ETF (FDLO).

Fidelity® Low Volatility Factor ETF tracks an index of large-cap and mid-cap diversified U.S.-based stocks that have relatively low volatility. Its stock selection has turned out to be quite good so far. FDLO's top holdings are in healthcare and technology-oriented stocks, and the fund has been able to generate consistently strong total returns over the years. During an economic downturn, low-volatility stocks reduce risk of uncertainty, but FDLO's emphasis on technology stocks might lead to short-term downfall.