For investors seeking momentum, the Fidelity Low Volatility Factor ETF FDLO is probably on the radar now. The fund just hit a 52-week high and jumped 16.4% from its 52-week low price of $59.98 per share.
But are there more gains in store for this ETF? Let’s take a quick look at the fund and its near-term outlook to get a better sense of where it might head.
FDLO in Focus
This fund offers exposure to large and mid-capitalization U.S. companies with lower volatility than the broader market. The product charges 15 basis points (bps) in annual fees (See: All Style-Box-Large Cap ETFs here).
What Led to the Rise?
Stubborn inflation spikes amid the long-running crisis in the Middle East have been driving investors lately out of speculative assets and into defensive, low-beta quality equities like those held by the FDLO fund. The fund is also heavily invested in technology giants like Apple, Alphabet and Microsoft, all of which have benefited from sustained AI-driven momentum. This powerful mega-cap tech rally, together with the shift in investor focus to defensive assets, is likely to have lifted the ETF to a fresh 52-week high.
More Gains Ahead?
FDLO may continue its strong performance in the near term, with a positive weighted alpha of 15.17 (as per Barchart.com), which suggests a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
