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FQAL - ETF AI Analysis

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FQAL

Fidelity Quality Factor ETF (FQAL)

Rating:69Neutral
Price Target:
FQAL’s rating suggests it is a solid, but not top-tier, quality-focused ETF, largely supported by strong, profitable tech leaders like Alphabet, Apple, Microsoft, and Nvidia, whose growth in AI, cloud, and services underpins the fund’s appeal. However, some holdings such as Seagate and Eli Lilly face issues like high leverage, cash flow challenges, or rich valuations, and the ETF’s heavy tilt toward large technology and AI-related companies means investors are exposed to sector concentration risk if sentiment toward these areas weakens.
Positive Factors
Strong Recent Fund Performance
The ETF has shown positive returns over the past month, three months, and year to date, indicating solid recent momentum.
Leading Growth Companies in Top Holdings
Several of the largest positions, such as Nvidia, Alphabet, Broadcom, Meta, and Johnson & Johnson, have delivered strong gains this year, helping support the fund’s overall results.
Low Expense Ratio
The fund’s relatively low fee means more of the investment returns stay in investors’ pockets over time.
Negative Factors
Heavy Tilt Toward Technology
With a large share of assets in technology stocks, the fund is more exposed to swings in that sector than a more balanced ETF.
High U.S. Concentration
Because almost all holdings are in U.S. companies, investors get little geographic diversification and remain tied closely to the U.S. market.
Several Large Holdings Are Lagging
Some major positions like Apple, Microsoft, JPMorgan, Eli Lilly, and Visa have shown weak performance this year, which could weigh on future returns if the trend continues.

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

FQAL Summary

Fidelity Quality Factor ETF (FQAL) tracks the Fidelity U.S. Quality Factor Index, which focuses on large U.S. companies with strong finances and steady earnings. It holds many well-known names such as Apple, Nvidia, Microsoft, and JPMorgan Chase, and spreads investments across technology, finance, health care, and more. Someone might consider this ETF to seek long-term growth while aiming for relatively higher-quality companies than the overall market. However, it is still heavily invested in U.S. stocks, especially tech, so its price can rise and fall significantly with the stock market and technology sector.
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 names, with Nvidia, Apple, Alphabet, and Broadcom doing most of the heavy lifting as they ride the ongoing AI and cloud wave. Microsoft’s performance has been more mixed, acting like a strong engine that occasionally misfires, while Meta has been losing steam and quietly tugging on returns. With all of its top holdings based in the U.S. and a clear tilt toward technology and communication services, this “quality” fund is really betting that high-end American tech keeps leading the market.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia7.39%$103.06M$4.97T46.83%
76
Outperform
Apple6.47%$90.20M$4.28T49.39%
79
Outperform
Alphabet Class A5.13%$71.57M$4.35T108.94%
85
Outperform
Microsoft4.28%$59.76M$2.90T-16.57%
79
Outperform
Broadcom3.20%$44.64M$1.82T56.26%
76
Outperform
Meta Platforms1.87%$26.11M$1.44T-15.47%
76
Outperform
Eli Lilly & Co1.72%$24.05M$1.07T39.84%
72
Outperform
JPMorgan Chase1.67%$23.24M$859.37B18.14%
72
Outperform
Applied Materials1.59%$22.24M$450.37B231.79%
77
Outperform
Lam Research1.54%$21.55M$458.72B316.36%
77
Outperform

FQAL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
78.97
Positive
100DMA
77.06
Positive
200DMA
75.77
Positive
Market Momentum
MACD
0.52
Positive
RSI
61.32
Neutral
STOCH
77.56
Neutral
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 80.68, equal to the 50-day MA of 78.97, and equal to the 200-day MA of 75.77, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 77.56 is Neutral, 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
$1.39B0.15%
69
Neutral
$8.39B0.02%
74
Outperform
$5.63B0.98%
66
Neutral
$5.23B0.25%
74
Outperform
$4.62B0.06%
73
Outperform
$4.48B0.50%
75
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FQAL
Fidelity Quality Factor ETF
81.50
14.72
22.04%
BBUS
JP Morgan Betabuilders U.S. Equity ETF
AKRE
Akre Focus ETF
DSI
iShares MSCI KLD 400 Social ETF
VTHR
Vanguard Russell 3000 ETF
QLTY
GMO U.S. Quality 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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