Should Fidelity Value Factor ETF (FVAL) Be on Your Investing Radar?

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the Fidelity Value Factor ETF (FVAL), a passively managed exchange traded fund launched on September 12, 2016.The fund is sponsored by Fidelity. It has amassed assets over $1.04 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueLarge cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets. CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.16%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.45%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector -- about 31.1% of the portfolio. Financials and Consumer Discretionary round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.79% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL).The top 10 holdings account for about 41.16% of total assets under management.Performance and RiskFVAL seeks to match the performance of the Fidelity U.S. Value Factor Index before fees and expenses. The Fidelity U.S. Value Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies that have attractive valuations.The ETF has added roughly 12.17% so far this year and was up about 18.43% in the last one year (as of 09/15/2025). In the past 52-week period, it has traded between $52.80 and $68.50.The ETF has a beta of 0.97 and standard deviation of 16.1% for the trailing three-year period. With about 130 holdings, it effectively diversifies company-specific risk.AlternativesFidelity Value Factor ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FVAL is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $71.86 billion in assets, Vanguard Value ETF has $146.37 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity Value Factor ETF (FVAL): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks