Fidelity Nasdaq Composite Index ETF (ONEQ)
AI Summary
The ETF strategy aims to track the performance of a specific index by investing at least 80% of its assets in the constituent stocks. It employs statistical sampling techniques to create a portfolio that closely mirrors the investment profile of the entire index, considering factors like market capitalization, industry exposure, dividend yield, P/E ratio, P/B ratio, and earnings growth.
The fund may operate as a non-diversified fund to the extent that the underlying index is non-diversified, allowing it to hold a concentrated position in certain stocks if their index weighting increases significantly. Additionally, the fund engages in securities lending to generate additional income.
This approach provides cost-effective exposure to the target index while maintaining flexibility to adjust holdings based on changes in the index composition or individual stock characteristics.
Strategy Narrative (Prospectus)
Using statistical sampling techniques that take into account such factors as capitalization, industry exposures, dividend yield, price/earnings (P/E) ratio, price/book (P/B) ratio, and earnings growth to create a portfolio of securities listed in the index that have a similar investment profile to the entire index.Investing at least 80% of assets in common stocks included in the index.Lending securities to earn income for the fund. The fund may operate as a non-diversified fund, as defined under the Investment Company Act of 1940 (1940 Act), to the approximate extent the index is non-diversified. The fund may therefore operate as non-diversified solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the index.