Fidelity U.S. Multifactor ETF

Fidelity U.S. Multifactor ETF (FLRG) is an index fund that tracks the Fidelity U.S. Multifactor Index. The index is a rules-based mix of large and mid-size U.S. stocks chosen for valuation, quality, momentum and lower volatility. Its 0.15% expense ratio is close to the 0.17% average of similar funds. Its tilt toward steadier stocks has meant smaller swings than the market, but its returns trailed similar funds over the one and three years to October 27, 2026.

• Over the year to Oct 27, 2026, FLRG returned +10.7%, 9th of 9 among similar funds.
• Its 5-year annualized return was +12.1%.
• Its worst full calendar year was 2022 (-10.9%); its best was 2024 (+23.4%).
• The deepest fall in its price history was 19.6% (Jan 4, 2022 to Jun 16, 2022), recovered by Sep 1, 2023.

As of Jul 31, 2026, the fund held 99 securities; the ten largest made up 35.8% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $4.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.43%, -0.08%, +1.17%.

FLRG is passively managed. It aims to match the Fidelity U.S. Multifactor Index before fees, and Fidelity built that index with its own rules. The index starts with large and mid-size U.S. companies and gives each stock one combined score based on four "factors," traits investors use to sort stocks. They are valuation (how cheap the stock looks), quality (how strong the business is), momentum (whether the price trend is positive) and volatility (how much the price swings, with lower swings preferred). The stocks with the highest scores go into the index.

Weighting is done sector by sector. Each stock starts at its market-value weight in the broader U.S. market. Then every stock in the same sector gets the same extra boost. The biggest companies still lead. As of July 31, 2026, the fund held 99 stocks. The largest were NVIDIA (7.1%), Apple (6.7%), Alphabet (5.4%) and Microsoft (5.1%), and the top ten made up 35.8% of assets.

The fund keeps at least 80% of its assets in stocks from the index. Since December 11, 2025, related derivatives can count toward that 80%, and the fund held a tiny S&P 500 futures position on July 31, 2026. It also lends out securities to earn extra income. That adds a small risk that a borrower fails to return them. The prospectus reports portfolio turnover of 43%, so trading during the year equaled 43% of the portfolio's value.

• FLRG charges 0.15% a year, versus an average of 0.17% for the similar funds below (5th 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 offers broad exposure to 99 large and mid-size U.S. stocks for 0.15% a year, with a factor tilt rather than a narrow theme.

FLRG could anchor the U.S. stock part of a portfolio, with a tilt toward cheaper, steadier companies. Its price history starts in February 2021, so it has no record for the 2008 crisis or the 2020 crash. In the 2022 bear market it fell 19.6% from January to June 2022. It took about 14.5 months to recover, in September 2023, and 2022 ended down 10.9%. Selling shares during a drop like that locks in losses, so a cash or bond reserve may help. Income is modest: the trailing yield was 1.42% as of October 27, 2026, paid quarterly. In the SEC's standard example, the 0.15% expense ratio comes to $192 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

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