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FHEQ - ETF AI Analysis
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Fidelity Hedged Equity ETF (FHEQ)
Rating:71Outperform
Price Target:―
Positive Factors
Strong Top Holdings
Several key positions, including Nvidia, Broadcom, and Alphabet, have delivered strong year-to-date performance, boosting the ETF’s returns.
Sector Diversification
The ETF is spread across multiple sectors, with significant exposure to Technology, Financials, and Communication Services, reducing reliance on any single industry.
Reasonable Expense Ratio
The fund’s expense ratio of 0.48% is competitive, allowing investors to keep more of their returns compared to higher-cost alternatives.
Negative Factors
High Geographic Concentration
With over 96% exposure to U.S. companies, the ETF lacks meaningful international diversification, making it sensitive to domestic market conditions.
Overweight in Technology
The ETF’s heavy allocation to Technology at nearly 36% could lead to increased volatility if the sector faces a downturn.
Mixed Performance in Holdings
Some top holdings, like Amazon and Tesla, have shown weaker year-to-date performance, which could drag on overall fund returns.
FHEQ vs. SPDR S&P 500 ETF (SPY)
AUM613.78M
RegionGlobal
Expense Ratio0.48%
Beta0.67
IssuerFidelity
Inception DateApr 09, 2024
Dividend YieldN/A
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume47,807
30 Day Avg. Volume81,363
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
35.72Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering143
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FHEQ Summary
The Fidelity Hedged Equity ETF (FHEQ) is an investment fund that focuses on large-cap companies, which are big, well-established businesses that play a major role in the global economy. It includes popular companies like Nvidia and Apple, and its largest sector exposure is in technology. What makes this ETF unique is its hedging strategy, which aims to reduce risk during market downturns while still offering growth potential. This could be a good choice for investors seeking stability and protection against market volatility. However, since it is heavily invested in technology stocks, its performance may be impacted if the tech sector faces challenges.
How much will it cost me?The Fidelity Hedged Equity ETF (FHEQ) has an expense ratio of 0.48%, which means you’ll pay $4.80 per year for every $1,000 invested. This is slightly higher than average because it uses active management and hedging strategies to reduce risk and manage market volatility.
What would affect this ETF?The Fidelity Hedged Equity ETF (FHEQ) could benefit from growth in the technology sector, which makes up a significant portion of its holdings, as well as strong performance from top companies like Nvidia, Apple, and Microsoft. However, rising interest rates or economic slowdowns could negatively impact large-cap stocks and sectors like financials and consumer cyclical, while global market volatility might challenge its hedging strategy. The ETF's broad geographic exposure provides diversification, but global economic uncertainty could still pose risks.
FHEQ Top 10 Holdings
The Fidelity Hedged Equity ETF leans heavily into technology, with names like Nvidia and Apple driving its performance thanks to their focus on AI and services expansion, though Nvidia has shown mixed momentum recently. Alphabet is another bright spot, with strong gains fueled by its AI and cloud investments. However, Microsoft and Meta have been lagging, facing bearish trends and valuation concerns. While the fund’s global exposure provides diversification, its tech-heavy concentration means its fortunes are closely tied to the sector’s ups and downs, making it a bet on innovation with a hedged twist.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 7.25% | $44.75M | $4.30T | 27.68% | 76 Outperform | |
| Apple | 7.03% | $43.36M | $4.12T | 17.49% | 80 Outperform | |
| Microsoft | 5.43% | $33.49M | $3.66T | 14.16% | 73 Outperform | |
| Amazon | 4.20% | $25.89M | $2.49T | 12.18% | 71 Outperform | |
| Broadcom | 3.76% | $23.17M | $1.90T | 142.00% | 76 Outperform | |
| Alphabet Class A | 2.93% | $18.05M | $3.86T | 89.51% | 80 Outperform | |
| Meta Platforms | 2.77% | $17.07M | $1.63T | 12.82% | 71 Outperform | |
| Alphabet Class C | 2.76% | $17.03M | $3.86T | 87.76% | 82 Outperform | |
| Berkshire Hathaway B | 2.10% | $12.93M | $1.11T | 7.64% | 66 Neutral | |
| JPMorgan Chase | 1.88% | $11.60M | $852.29B | 27.14% | 72 Outperform |
FHEQ Technical Analysis
Positive
―
Price Trends
30.69
Positive
30.11
Positive
28.61
Positive
Market Momentum
<0.01
Negative
53.36
Neutral
92.24
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FHEQ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 30.71, equal to the 50-day MA of 30.69, and equal to the 200-day MA of 28.61, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 92.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FHEQ.
FHEQ Peer Comparison
Comparison Results
Performance Comparison
FHEQ
Fidelity Hedged Equity ETF
30.85
2.87
10.26%
FFLC
Fidelity Fundamental Large Cap Core ETF
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TGRW
T. Rowe Price Growth Stock ETF
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FFLG
Fidelity Fundamental Large Cap Growth ETF
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TEQI
T. Rowe Price Equity Income ETF
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FYEE
Fidelity Yield Enhanced Equity ETF
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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.
Disclaimer
This 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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