FDMO ETF

The Fidelity Momentum Factor ETF targets large and mid-sized U.S. companies that show strong momentum, similar to the Russell 1000 Index. While FDMO has recently performed well due to its focus on large companies, it might struggle with high valuations and if market leadership shifts to different sectors. Even though it has seen good short-term results, FDMO's performance over the last five years is not as strong as the Russell 1000 and other similar funds, resulting in a neutral view on the ETF.

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.