Many investors look to large-cap growth or value ETFs for core equity exposure.
Fidelity has two funds in its Enhanced ETF suite that may be able to add a growth or value tilt to a portfolio’s equity exposure: the Fidelity Enhanced Large Cap Growth ETF (FELG ) and the Fidelity Enhanced Large Cap Value ETF (FELV ).
Fidelity’s Enhanced Large-Cap Growth ETF
FELG invests in companies included in the Russell 1000 Growth Index, which is a market-cap-weighted index designed to measure the performance of the large-cap growth segment of the U.S. equity market.
The fund uses quantitative analysis of historical valuation, growth, profitability, and other factors to select a broadly diversified group of stocks. Furthermore, the fund selects stocks that may have the potential to outperform the Russell 1000 Growth Index.
Additionally, FELG has $3.2 billion in assets under management as of December 31.
Looking under the hood, FELG’s top sector exposure is information technology. The information technology sector makes up 46.8% of the fund by weight as of December 31.
The fund has 93 holdings in total but is relatively concentrated compared to FELV. The top 10 names in FELG comprise 62.2% of the fund by weight as of December 31.
The top 10 holdings as of December 31 are all well-known growth stocks. They include Apple, Nvidia, Microsoft, Amazon.com, Meta, Tesla, Alphabet (Class A and Class C), Broadcom, as well as Mastercard.
Fidelity’s Enhanced Large-Cap Value ETF
FELV invests in stocks included in the Russell 1000 Value Index. The index is a market-cap-weighted index designed to measure the performance of the large-cap value segment of the U.S. equity market.
Like FELG, the value ETF uses quantitative analysis of historical valuation, growth, profitability, and other factors to select a broadly diversified group of stocks that may have the potential to outperform the Russell 1000 Value Index. FELV has $1.9 billion in assets under management as of December 31.
Compared to FELG, FELV is more diversified across sectors. FELV’s top sector is financials, weighted at 22.8% as of December 31.
Furthermore, the fund is less concentrated than FELG, as the fund has 372 holdings. The top 10 names make up 18.7% of the fund by weight as of December 31.
The top 10 holdings as of December 31 include Berkshire Hathaway, JPMorgan Chase, Exxon Mobil, Walmart, Bank of America, The Walt Disney Company, UnitedHealth Group, Procter & Gamble, Wells Fargo & Co., and Cisco Systems.
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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