Fidelity Momentum Factor ETF

Fidelity Momentum Factor ETF (FDMO) tracks the Fidelity U.S. Momentum Factor Index, a rules-based mix of large and mid-size U.S. stocks with strong recent gains and earnings that beat forecasts. It keeps each sector near its weight in the broader market, so it picks winners within every sector instead of piling into one. Its 0.15% expense ratio is below the 0.33% average for similar funds, though it trades heavily, with 121% portfolio turnover.

• Over the year to Oct 27, 2026, FDMO returned +9.0%, 6th of 9 among similar funds.
• Its 5-year annualized return was +13.3% and its 10-year +15.3%.
• In the 2020 COVID crash it fell 33.9% and regained its old high 4.4 months after the low.
• Its worst full calendar year was 2022 (-19.3%); its best was 2024 (+32.8%).
• The deepest fall in its price history was 33.9% (Feb 19, 2020 to Mar 23, 2020), recovered by Aug 3, 2020.

As of Jul 31, 2026, the fund held 135 securities; the ten largest made up 39.26% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $44.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.19%, +3.33%, -6.51%.

FDMO follows the Fidelity U.S. Momentum Factor Index, which uses Fidelity's own rules-based method. "Momentum" means stocks that have been rising tend to keep rising for a while. Within each sector, the index ranks large and mid-size U.S. stocks on four measures: high total returns, high returns relative to how bumpy the ride was, large positive earnings surprises (profits that beat analysts' forecasts), and low short interest (few investors betting the stock will fall). The scores are adjusted for company size, and the highest scorers in each sector make the cut.

Each sector is held at roughly its weight in the broader market. Within a sector, each stock is weighted by its market value, plus an equal extra slice for every member. Big companies still lead. As of July 31, 2026, the fund held 135 stocks, led by NVIDIA (8.0%), Apple (7.6%) and Alphabet (5.7%), and the top ten made up 39% of assets.

It is a plain stock fund with no leverage or options. Turnover of 121% means the holdings change a lot, which can raise trading costs and capital gains. From December 11, 2025, derivatives count toward its rule of keeping at least 80% of assets in index securities. It also lends out securities for extra income, which carries the risk that a borrower fails to return them.

• FDMO charges 0.15% a year, versus an average of 0.23% for the similar funds below (3rd 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).

It is a high-turnover momentum tilt that has swung more than the overall market, so it fits better beside a broad core holding than in place of one.

FDMO adds a tilt toward U.S. stocks on a winning streak, but it has swung harder than the market. Its one-year beta was 1.39 as of October 27, 2026, so it moved about 1.4 times as much as the market. In the 2020 COVID crash it fell 33.9% between February 19 and March 23, 2020, then recovered in about four months. The 2022 bear market was slower: it dropped 24.9% by June 16, 2022, and took about 18 months to recover. Its worst calendar year was 2022, at −19.16%. It launched in 2016, so it has no 2008 record. Someone forced to sell during a slump would lock in losses. The trailing yield was 0.64% as of October 27, 2026, paid quarterly, so it is not an income source. Costs are low: $15 in the first year on $10,000. Past results don't predict future ones, and a plan should weigh the whole portfolio, not one fund.

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