Considering options to refresh your core allocations? Equities are facing some notable uncertainty via potential tariffs, up-and-down government policy, and declining consumer confidence. Despite that, opportunities still abound for the savvy investor who knows where to look. A large-cap ETF like FLRG could present one notable option, with four key reasons for investors to give the strategy a closer look this year.
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The Fidelity U.S. Multifactor ETF (FLRG ) charges a 16 basis point fee to track the Fidelity U.S. Multifactor Index. The strategy considers four factors in assessing potential investments. Those factors include value, quality, low volatility, and momentum. Considering firms from all sectors, FLRG creates a composite score created via those four factors. In doing so, the fund looks for high-quality stocks with strong momentum that sit at appealing valuations and tend toward lower volatility.
Large-Cap ETF FLRG’s 4 Reasons
A lower volatility approach, for example, could find firms that have demonstrated relatively less risk than the broader stock market. Emphasizing momentum, meanwhile, could help FLRG find firms zigging as markets zag. An emphasis on value, too, merits consideration as value looks to finally make its mark after years of growth outperforming. Not to be forgotten, either, a quality approach could pinpoint those companies with healthy balance sheets prepared to outlast a selloff.
The multifactor large cap ETF has returned 19.66% over one year as of February 28th, per Fidelity Investments data. That has outperformed the fund’s benchmark, the S&P 500 Total Return index, in that same time frame, according to that data.
Looking ahead, if dropping consumer sentiment and potential tariffs threaten to create a broader downturn, investors may consider their options. FLRG’s multiple factors could help it find more durable firms. Taken together, FLRG could appeal.
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
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