Fidelity Low Volatility Factor ETF

Fidelity Low Volatility Factor ETF (FDLO) tracks the Fidelity U.S. Low Volatility Factor Index. The index uses set rules to pick about 124 large and mid-size US companies whose prices, market sensitivity and earnings have been steadier than average. It keeps sector weights in line with the overall market, so its biggest holdings are still Apple, Microsoft and Alphabet. Its 0.15% expense ratio is higher than the 0.08% average of funds with similar holdings.

• Over the year to Oct 27, 2026, FDLO returned +13.2%, 3rd of 9 among similar funds.
• Its 5-year annualized return was +9.8% and its 10-year +13.4%.
• In the 2020 COVID crash it fell 34.3% and regained its old high 5.2 months after the low.
• Its worst full calendar year was 2022 (-10.4%); its best was 2019 (+31.1%).
• The deepest fall in its price history was 34.3% (Feb 19, 2020 to Mar 23, 2020), recovered by Aug 28, 2020.

As of Jul 31, 2026, the fund held 124 securities; the ten largest made up 38.45% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $30.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.90%, -2.62%, +4.99%.

FDLO aims to match the Fidelity U.S. Low Volatility Factor Index, before fees. Fidelity built the index with its own rules-based method. It starts with large and mid-size US companies and ranks them within each sector on three measures: how much their returns swing, their beta (how closely a stock tends to move with the overall market) and how much their earnings vary. These combine into one score, adjusted for company size. The highest-scoring stocks in each sector are chosen.

The index then sets each sector at its weight in the broader stock market, so it doesn't pile into traditionally calmer sectors. Within each sector, a stock's weight is its market value plus an equal extra amount added to every member. That keeps the giants large. As of July 31, 2026, Apple was 8.0% of the fund, Microsoft 6.3% and Alphabet 6.2%. Technology made up 29.8%, and the top 10 holdings were 38.45% of the fund's 124 issuers.

The fund must keep at least 80% of its assets in index stocks. Since December 11, 2025, derivatives that give similar exposure also count toward that 80%. As of July 31, 2026, its only derivative was a tiny S&P 500 futures position, and cash was 1.22%. The fund also lends out securities to earn extra income. That carries a small risk that a borrower won't return them. Portfolio turnover was 19% in the period reported in the prospectus.

• FDLO charges 0.15% a year, versus an average of 0.08% for the similar funds below (7th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $15 in the first year and $192 over 10 years (assuming a 5% annual return).

FDLO picks stocks for steadier prices and lower market sensitivity, which may soften the stock side of a portfolio, but it is still 100% stocks.

FDLO launched in 2016, so it has no record from the 2008 financial crisis. Its deepest drop came in the 2020 COVID crash. It fell 34.3% between February 19 and March 23, then got back to its old high by August 28, about five months after the low. In the 2022 bear market it fell 18.4% and took about 10 months to recover from its September 30 low. 2022 was its worst calendar year, down 10.4%. The low-volatility approach softened swings but did not prevent a steep crash. Anyone taking money out in a bad year could still be cashing out at low prices.

Income is modest: the trailing yield was 1.33% as of October 27, 2026, paid quarterly. In the SEC's standard example, costs on $10,000 come to $15 after one year and $192 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.