Fidelity Low Volatility Factor ETF [FDLO] Stock Forecast

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).

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

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.

Fidelity's two largest ETFs are index-based. However, that might be short-lived as the firm increases its commitment to ETF industry through active products.

As the stock market is playing tug-of-war between the bulls and bears, low-volatility ETFs have gained traction.

Though Wall Street is off to a good start to first-quarter 2023, a volatile ride is expected ahead as fears of further Fed rate hikes and global growth concerns remain.

Low-risk ETFs have the potential to outpace the broader market in bearish market conditions, providing significant protection to the portfolio.

We backtest the discrete volatility model from Lazard Asset Management for a VXX trading strategy. The additional layer of specification yields a stellar return in the in-sample period, but disappoints in the out-of-sample period.

Fidelity Low Volatility Factor ETF is a US stock and trading under the symbol FDLO

Fidelity Low Volatility Factor ETF stock price is $53.975 today.

Yes, Fidelity Low Volatility Factor ETF is a publicly traded company.