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FCOM - ETF AI Analysis

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FCOM

Fidelity MSCI Communication Services Index ETF (FCOM)

Rating:72Outperform
Price Target:
FCOM, the Fidelity MSCI Communication Services Index ETF, earns a solid overall rating largely because its biggest positions in Meta and Alphabet are backed by strong financial performance, positive earnings commentary, and promising investments in AI and cloud services that support long-term growth. Telecom leaders like Verizon and AT&T add stability through attractive valuations and steady cash flows, though issues such as high debt, competitive pressures, and some bearish technical signals in names like AT&T and T-Mobile slightly weigh on the fund. The main risk factor is the ETF’s heavy concentration in a few large communication and tech-related companies, which can make performance more sensitive to sector-specific setbacks and regulatory or valuation concerns around these giants.
Positive Factors
Low Expense Ratio
The fund’s relatively low annual fee helps investors keep more of any returns they earn over time.
Strong Alphabet Positions
Both Alphabet share classes are among the largest holdings and have shown strong year-to-date performance, supporting the fund’s results.
Focused Industry Exposure
The ETF is heavily focused on the communication services sector, giving investors targeted exposure to major media, internet, and telecom companies.
Negative Factors
Heavy Concentration in Top Stocks
A large portion of the portfolio is tied up in a few companies like Meta and Alphabet, which increases the impact of any weakness in these names.
Several Weak Top Holdings
Multiple major positions, including Meta, Disney, Netflix, Comcast, and Warner Bros, have shown weak year-to-date performance, which can drag on the fund.
Single-Sector and U.S.-Only Focus
Almost all assets are in U.S. communication services stocks, offering little diversification across sectors or countries and making the fund sensitive to downturns in this niche.

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

FCOM Summary

FCOM is the Fidelity MSCI Communication Services Index ETF, which tracks the MSCI USA IMI Communication Services 25/50 Index. It focuses on U.S. companies that help people connect and share information, including telecom, media, entertainment, and online platforms. Big names in the fund include Meta Platforms (Facebook) and Alphabet (Google), along with firms like Disney and Verizon. Someone might invest in FCOM for growth from the ongoing shift to digital communication and for diversification within this sector. A key risk is that it’s heavily tied to communication and tech-related stocks, so its price can rise and fall sharply with that part of the market.
How much will it cost me?The Fidelity MSCI Communication Services Index ETF (FCOM) has an expense ratio of 0.084%, which means you’ll pay $0.84 per year for every $1,000 invested. This is lower than average because it’s a passively managed ETF that tracks an index, keeping costs low.
What would affect this ETF?FCOM could benefit from continued growth in digital advertising, streaming services, and advancements in telecommunications technology, driven by its top holdings like Meta, Alphabet, and Netflix. However, rising interest rates or regulatory scrutiny on major tech and media companies could negatively impact the ETF's performance, especially given its heavy reliance on U.S.-based firms in the communication services sector.

FCOM Top 10 Holdings

FCOM is essentially a bet on U.S. digital communication, with Meta sitting in the driver’s seat and Alphabet riding shotgun. Meta has been rising lately, helping offset its weaker stretch earlier in the year, while Alphabet’s twin share classes have been more mixed, offering steady but not spectacular support. Traditional telecom names tell a split story: Verizon has been a quiet bright spot, but AT&T is still losing steam. On the media side, Disney, Netflix, and Comcast have been lagging, turning the entertainment sleeve into a drag on this otherwise tech-tilted communications fund.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Meta Platforms21.39%$381.47M$1.49T-30.31%
76
Outperform
Alphabet Class A13.66%$243.63M$4.11T73.87%
85
Outperform
Alphabet Class C7.44%$132.78M$4.11T73.02%
82
Outperform
Verizon4.72%$84.16M$197.17B7.83%
81
Outperform
AT&T4.57%$81.55M$164.05B-15.32%
71
Outperform
Walt Disney4.54%$81.06M$171.01B-19.27%
75
Outperform
Netflix4.37%$77.98M$306.59B-36.89%
73
Outperform
Comcast3.43%$61.11M$87.33B-28.77%
74
Outperform
T Mobile US3.34%$59.57M$194.71B-27.29%
76
Outperform
Warner Bros2.85%$50.86M$64.28B93.39%
68
Neutral

FCOM Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
71.12
Negative
100DMA
71.44
Negative
200DMA
71.46
Negative
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FCOM, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 70.66, equal to the 50-day MA of 71.12, and equal to the 200-day MA of 71.46, indicating a bearish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FCOM.

FCOM Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.79B0.08%
72
Outperform
$9.79B0.09%
72
Outperform
$8.84B0.08%
70
Neutral
$8.74B0.09%
67
Neutral
$8.58B0.08%
67
Neutral
$5.87B0.09%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCOM
Fidelity MSCI Communication Services Index ETF
68.66
4.31
6.70%
VDE
Vanguard Energy ETF
XLRE
Real Estate Select Sector SPDR Fund
VPU
Vanguard Utilities ETF
XLB
Materials Select Sector SPDR Fund
VOX
Vanguard Communication Services 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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