FDMO ETF

The Fidelity Momentum Factor ETF focuses on large and mid-cap U.S. companies with strong momentum indicators, closely mirroring the Russell 1000 Index. FDMO's high exposure to mega caps has driven recent outperformance but may face challenges due to high valuations and if market leadership broadens to other sectors. Despite strong short-term gains, FDMO's five-year performance lags behind the Russell 1000 and peers, leading to a neutral stance on the fund.

FDMO is supposed to offer exposure to U.S. stocks exhibiting strong momentum characteristics. The index it tracks has a nuanced approach to constituent selection, with returns, volatility, EPS surprises, and short interest among the parameters assessed. Most FDMO's holdings have high beta, accompanied by robust growth characteristics. At the same time, there is close to nothing to criticize about their quality.