(FDHT) Fidelity Covington Trust - - Ratings and Ratios

The Fidelity Covington Trust - Fidelity Digital Health ETF (BATS:FDHT) is a non-diversified exchange-traded fund (ETF) designed to track the performance of companies involved in technology-enabled healthcare solutions. The fund typically invests at least 80% of its assets in securities and depositary receipts included in its underlying index. This index focuses on a broad range of healthcare technology sectors, including but not limited to electronic health records (EHR), connected medical devices, surgical robotics, telemedicine platforms, and AI-driven healthcare tools. By targeting these areas, the ETF aims to capture growth opportunities in the rapidly evolving digital health landscape.

From a technical perspective, FDHT has shown recent price weakness, trading below its 20-day and 50-day simple moving averages (SMA) of 21.06 and 20.68, respectively. However, it remains slightly above its 200-day SMA of 19.64, indicating some longer-term support. The Average True Range (ATR) of 0.35 suggests relatively low volatility, while the average 20-day volume of 2355 shares highlights limited liquidity. The funds assets under management (AUM) of $8.20 million reflect its niche focus and smaller market presence.

Over the next three months, FDHT is expected to remain range-bound, with potential resistance near its 20-day SMA of 21.06 and support at its 200-day SMA of 19.64. The low average volume and tight ATR suggest that price movements may be muted, with limited upside or downside momentum. Fundamental tailwinds from the growing adoption of digital health solutions could provide moderate support, but the funds small AUM and concentration in a specialized sector may limit its near-term growth.