(FDMO) Fidelity Momentum Factor - Ratings and Ratios

The Fidelity® Momentum Factor ETF (NYSE ARCA:FDMO) is designed to track the performance of large and mid-capitalization U.S. companies that exhibit strong momentum characteristics. The fund invests at least 80% of its assets in the Fidelity U.S. Momentum Factor Index, which uses a multi-factor model to identify stocks with positive momentum signals. These signals are derived from metrics such as price trends, earnings momentum, and other quantitative measures. The ETF also engages in securities lending to generate additional income. For more information, visit http://www.institutional.fidelity.com.

The funds investment strategy focuses on capturing the performance of stocks with strong price and earnings momentum. Its portfolio is rebalanced periodically to maintain exposure to high-momentum securities while managing turnover. The ETF provides investors with a targeted way to gain exposure to the momentum factor, which has historically outperformed broader market indices during certain market conditions. The funds holdings are diversified across sectors, reducing reliance on any single industrys performance.

Based on the provided data, here is a 3-month forecast for Fidelity® Momentum Factor ETF (FDMO):

Technical Outlook: FDMO is currently trading below its 20-day and 50-day moving averages, which may indicate short-term weakness. However, the 200-day moving average of 66.62 could act as a support level. The Average True Range (ATR) of 1.08 suggests moderate volatility, with potential price swings of $1.08 above or below the current price of 68.86.

Fundamental Outlook: With assets under management (AUM) of $511.47 million, FDMO is a sizeable ETF, indicating strong investor interest in the momentum factor. The funds focus on large and mid-cap companies with strong momentum signals positions it well to capitalize on continued market growth, particularly in sectors with high earnings momentum.