(FELV) Fidelity Covington Trust - Ratings and Ratios

The Fidelity Covington Trust, listed on the NYSE ARCA under the ticker FELV, is an exchange-traded fund (ETF) that primarily focuses on investing in common stocks that are part of the Russell 1000® Value Index. This index is specifically designed to track the performance of the large-cap value segment of the U.S. equity market, using a market capitalization-weighted approach. By doing so, the fund aims to provide investors with exposure to a broad range of large-cap value stocks, which are typically characterized by lower price-to-book ratios and lower expected growth rates compared to their growth-oriented counterparts.

The investment strategy employed by the fund's adviser involves a thorough research-driven approach, seeking to identify the long-term drivers of stock returns. These drivers can encompass a variety of factors, including but not limited to, valuation, growth prospects, quality of the company, and other relevant metrics. The adviser's goal is to construct a portfolio that accurately represents the Russell 1000® Value Index, thereby allowing investors to gain diversified exposure to the large-cap value segment of the U.S. equity market. As an ETF, FELV offers the benefits of transparency, flexibility, and cost-efficiency, making it an attractive option for investors looking to tap into the potential of large-cap value stocks.

Given its classification as a Large Value ETF, FELV is suited for investors who seek to capitalize on the potential of established companies with strong financials and lower valuations. The fund's investment objective is to track the performance of the Russell 1000® Value Index, which means it will typically hold a portfolio of stocks that are consistent with this index. By investing in FELV, investors can potentially benefit from the diversification and liquidity that comes with owning a broad range of large-cap value stocks, while also gaining exposure to the potential long-term growth and income generation that this segment of the market has to offer.