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FQAL - ETF AI Analysis

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FQAL

Fidelity Quality Factor ETF (FQAL)

Rating:74Outperform
Price Target:
FQAL’s rating reflects a portfolio led by high-quality tech giants like Alphabet, Apple, Microsoft, and Nvidia, whose strong financial performance and growth in AI, cloud, and services provide a solid foundation for the fund. Some holdings, such as Eli Lilly and JPMorgan, face cash flow, leverage, or credit-cost challenges that slightly weigh on the overall assessment. The main risk factor is the fund’s heavy concentration in large technology and AI-related companies, which can increase sensitivity to sector-specific downturns and valuation pressures.
Positive Factors
Strong Overall Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum.
Leading Growth Companies in Top Holdings
Several of the largest positions, including major technology and financial names, have delivered strong returns, helping drive the fund’s results.
Low Expense Ratio
The fund’s relatively low annual fee means more of the investment gains can stay in investors’ pockets over time.
Negative Factors
Heavy Tilt Toward Technology
A large share of the portfolio is in the technology sector, which can increase risk if that industry faces a downturn.
High Concentration in a Few Stocks
The top holdings make up a significant portion of the fund, so performance is heavily influenced by how these few companies do.
Mixed Results Among Top Holdings
While several major positions have performed strongly, a few important holdings have shown weaker or negative performance, which can drag on overall returns.

FQAL vs. SPDR S&P 500 ETF (SPY)

FQAL Summary

Fidelity Quality Factor ETF (FQAL) is a U.S. stock fund that follows the Fidelity U.S. Quality Factor Index, focusing on large, financially strong companies. It mainly holds American businesses across many sectors, with a big tilt toward technology. Well-known holdings include Apple and Nvidia, along with other major tech and financial firms. Someone might invest in FQAL to seek long-term growth from high-quality companies while still getting broad diversification across the market. A key risk is that it is heavily exposed to large U.S. stocks, especially tech, so its price can rise and fall sharply with that part of the market.
How much will it cost me?The Fidelity Quality Factor ETF (FQAL) has an expense ratio of 0.16%, meaning you’ll pay $1.60 per year for every $1,000 invested. This is lower than the average for actively managed funds because it follows a passive strategy, tracking the Fidelity U.S. Quality Factor Index to keep costs down.
What would affect this ETF?The Fidelity Quality Factor ETF (FQAL), with its focus on large-cap U.S. stocks and heavy exposure to technology, could benefit from continued innovation and growth in the tech sector, as well as stable economic conditions in North America. However, it may face challenges from rising interest rates, which could pressure growth-oriented companies, and regulatory changes affecting major tech firms like Nvidia, Apple, and Microsoft. Broader economic slowdowns or sector-specific disruptions could also negatively impact its performance.

FQAL Top 10 Holdings

FQAL is leaning heavily on U.S. Big Tech and chip leaders, with Nvidia and Apple acting as the main engines of recent gains, helped by Broadcom and a surging Applied Materials on the semiconductor side. Alphabet and Microsoft have been more mixed, with Microsoft in particular losing steam and dampening some of that tech strength. Meta is also a bit of a wild card, with choppy performance that doesn’t quite match its AI ambitions. Outside tech, steady showings from JPMorgan and Eli Lilly add balance, but this is still very much a U.S.-centric, quality-growth story dominated by a handful of large tech names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.70%$112.32M$5.42T19.49%
76
Outperform
Apple6.59%$96.07M$4.57T35.69%
79
Outperform
Microsoft5.34%$77.90M$3.71T-3.01%
79
Outperform
Alphabet Class A4.85%$70.73M$4.33T77.87%
85
Outperform
Broadcom3.37%$49.19M$2.04T38.99%
76
Outperform
Meta Platforms1.85%$26.93M$1.51T-22.32%
76
Outperform
JPMorgan Chase1.82%$26.55M$950.35B24.25%
72
Outperform
Eli Lilly & Co1.67%$24.36M$1.12T93.94%
72
Outperform
Applied Materials1.49%$21.71M$428.06B183.18%
77
Outperform
Cisco Systems1.40%$20.44M$478.61B73.44%
77
Outperform

FQAL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
81.65
Positive
100DMA
79.28
Positive
200DMA
77.24
Positive
Market Momentum
MACD
0.97
Negative
RSI
69.31
Neutral
STOCH
91.01
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FQAL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 82.87, equal to the 50-day MA of 81.65, and equal to the 200-day MA of 77.24, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 69.31 is Neutral, neither overbought nor oversold. The STOCH value of 91.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FQAL.

FQAL Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.46B0.15%
74
Outperform
$9.21B0.02%
74
Outperform
$5.53B0.25%
74
Outperform
$5.28B0.98%
70
Neutral
$5.08B0.50%
75
Outperform
$4.83B0.06%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FQAL
Fidelity Quality Factor ETF
84.94
13.04
18.14%
BBUS
JP Morgan Betabuilders U.S. Equity ETF
DSI
iShares MSCI KLD 400 Social ETF
AKRE
Akre Focus ETF
QLTY
GMO U.S. Quality ETF
VTHR
Vanguard Russell 3000 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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