At a glance
FQAL charges 0.15% a year, below the 0.17% average of the 8 funds most like it (the 5th cheapest of 9). It has $1.41B in assets, the 7th largest of that group; it paid 1.15% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +12.6% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +22.8% a year. At its worst it fell 33.7% in the 2020 crash (S&P 500: 33.7%) and 25.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 14 months after the lows. Its ten largest positions make up 38.1% of the fund, out of 125 in all.
The short version
Fidelity Quality Factor ETF (FQAL) is an index fund that tracks the Fidelity U.S. Quality Factor Index. The index holds large and mid-size U.S. companies chosen for strong, steady cash flow and high returns on capital. It keeps sector weights close to the broader market's, so it tilts toward quality without betting on one industry. Its 0.15% expense ratio is a little below the 0.17% average of similar funds.
Price history
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FQAL +12.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FQAL official prospectus, to Nov 29, 2025 | — | +22.08% | — | +13.31% | — | +13.80% |
| IXZ6H index, same period | — | +22.27% | — | +13.59% | — | +14.11% |
| RS001 index, same period | — | +24.51% | — | +14.28% | — | +14.59% |
| FQAL price data to Oct 27, 2026 | +12.8% | +12.6% | +22.8% | +11.4% | +14.6% | +14.3% |
- Over the year to Oct 27, 2026, FQAL returned +12.6%, 4th of 9 among similar funds.
- Its 5-year annualized return was +11.4% and its 10-year +14.6%.
- In the 2020 COVID crash it fell 33.7% and regained its old high 4.6 months after the low.
- Its worst full calendar year was 2022 (-19.7%); its best was 2021 (+32.2%).
- The deepest fall in its price history was 33.7% (Feb 14, 2020 to Mar 23, 2020), recovered by Aug 10, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.8% | — |
| 2025 | +16.9% | — |
| 2024 | +21.9% | +22.08% |
| 2023 | +24.2% | +24.13% |
| 2022 | -19.7% | -19.53% |
| 2021 | +32.2% | +31.84% |
| 2020 | +16.2% | +16.18% |
| 2019 | +28.1% | +27.48% |
| 2018 | -4.4% | -3.73% |
| 2017 | +23.0% | +22.81% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 33.7% over that stretch · deepest drop along the way 33.7%, back to its old high 4.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 25% over that stretch · deepest drop along the way 25%, back to its old high 14.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.7500 | |
| 2025 | $0.8500 | +9.0% |
| 2024 | $0.7800 | +5.4% |
| 2023 | $0.7400 | +10.4% |
| 2022 | $0.6700 | +1.5% |
| 2021 | $0.6600 | +4.8% |
| 2020 | $0.6300 | +8.6% |
| 2019 | $0.5800 | +11.5% |
| 2018 | $0.5200 | +8.3% |
| 2017 | $0.4800 |
What's inside
As of Jul 31, 2026, the fund held 125 securities; the ten largest made up 38.15% of assets.
| Holding | Weight | |
|---|---|---|
| NVIDIA CORP | 7.69% | |
| APPLE INC | 7.22% | |
| MICROSOFT CORP | 5.62% | |
| ALPHABET INC | 5.58% | |
| BROADCOM INC | 3.36% | |
| JPMORGAN CHASE and CO | 1.97% | |
| META PLATFORMS INC | 1.90% | |
| ELI LILLY and CO | 1.77% | |
| APPLIED MATERIALS INC | 1.54% | |
| VISA INC | 1.48% | |
| CISCO SYSTEMS INC | 1.46% | |
| SEAGATE TECHNOLOGY HOLDINGS PLC | 1.41% | |
| JOHNSON and JOHNSON | 1.37% | |
| LAM RESEARCH CORP | 1.31% | |
| FORTINET INC | 1.27% |
By country
United States 97.19%Ireland 2.38%United Kingdom 0.15%By asset type
Stocks 99.69%Bonds and notes 0.03%By sector
Sectors of the companies held, for the 85.6% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $20.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.73%, +0.35%, +1.02%.
How it works
FQAL normally invests at least 80% of its assets in the stocks of the Fidelity U.S. Quality Factor Index, which Fidelity builds using its own rules. The fund is passive: it follows the index and doesn't try to beat it. Within each sector, the index scores large and mid-size U.S. stocks on three quality measures. The first is free cash flow margin, the cash left from each dollar of sales after the company pays to run and invest in the business. The second is return on invested capital, the profit a company earns on the money put into it. The third is how stable its free cash flow has been. Scores are adjusted for company size, and the top scorers in each sector make the cut.
Each sector gets the same weight it has in the broader stock market. Within a sector, each stock is weighted by its market value plus an extra boost that is the same for every member. Big companies still lead. As of July 31, 2026, the fund held 125 stocks. The largest were NVIDIA (7.7%), Apple (7.2%), Microsoft (5.6%), Alphabet (5.6%) and Broadcom (3.4%), and the top 10 made up 38% of assets.
Portfolio turnover was 33%. The fund lends securities to earn extra income, which carries a small risk that a borrower fails to return them. Since December 11, 2025, derivatives count toward the 80% rule. As of July 31, 2026, the fund held only a tiny S&P 500 futures position.
What it really costs
- FQAL 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).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FQAL | $15 | $48 | $85 | $192 |
In a retirement portfolio
It is a broad, low-cost fund of about 125 U.S. large and mid-size companies, with sector weights close to the market's, so it could stand in for a large-company stock fund.
FQAL leans toward quality companies, but it is still 100% stocks and falls when the market falls. In the 2020 COVID crash it dropped 33.7% and recovered by August 10, 2020, about 4.6 months later. In the 2022 bear market it fell 25% and took 14.2 months to recover, until December 19, 2023. Its worst calendar year was 2022, at -19.53%. The fund launched in 2016, so it has no 2008 record. Anyone selling shares to cover spending in a year like 2022 would lock in losses. Income is modest: the yield was 1.15% for the 12 months to October 27, 2026, paid quarterly. Costs are low. Under the SEC's standard example, $10,000 would cost $15 in the first year and $192 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a broad U.S. large-company fund that leans toward cash-rich, highly profitable firms while keeping sector weights close to the market's.
- Cost-conscious holders: 0.15% a year, or $15 on $10,000 in the first year under the SEC example, a little below the 0.17% peer average.
- Long-term investors who can sit through drops like the 25% fall in 2022 for growth of 14.6% a year over 10 years through October 27, 2026.
Look elsewhere if
- Income seekers: the yield was 1.15% for the 12 months to October 27, 2026, paid quarterly.
- Investors expecting quality to beat the market: its 3-year return of 22.8% a year ranked 8th of 8 similar funds as of October 27, 2026.
- Those who want the lowest fees or less tech: Vanguard Large Cap ETF charges 0.04%, and technology was about a third of FQAL as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FQAL this fund | — | 0.15% | $1.41B | +12.6% | +22.8% |
| VSLU Applied Finance Valuation Large Cap ETF | 60% | 0.49% | $545.8M | +12.5% | +24.8% |
| MGC Vanguard Mega Cap ETF | 57% | 0.07% | $10.90B | +13.5% | +26.0% |
| IWL iShares Russell Top 200 ETF | 55% | 0.15% | $2.19B | +12.5% | +25.5% |
| BKLC BNY Mellon US Large Cap Core Equity ETF | 52% | 0% | $5.47B | +13.4% | +25.4% |
| SPYX SPDR S&P 500 Fossil Fuel Reserves Free ETF | 52% | 0.2% | $2.74B | +12.6% | +24.8% |
| VV Vanguard Large Cap ETF | 51% | 0.04% | $73.83B | +12.0% | +23.8% |
| FYEE Fidelity Yield Enhanced Equity ETF | 51% | 0.28% | $218.3M | +15.1% | — |
Questions investors ask
What is FQAL's expense ratio?
FQAL's expense ratio is 0.15% a year, according to the prospectus filed November 24, 2025. Under the SEC's standard example ($10,000 invested, 5% annual return), you would pay about $15 in the first year, $85 over five years and $192 over 10 years. That is a little below the 0.17% average of similar funds. Broad index funds such as Vanguard Mega Cap ETF (0.07%) and Vanguard Large Cap ETF (0.04%) cost less.
Does FQAL pay dividends?
Yes. FQAL pays dividends every quarter. Over the 12 months to October 27, 2026, it paid $0.97 per share, a yield of 1.15%. That income comes from the dividends of the companies it owns, such as Apple, Microsoft and JPMorgan Chase. The fund doesn't aim to produce income, so investors who want higher, steadier payouts would usually look at dividend-focused or bond funds.
FQAL vs VSLU: what's the difference?
Both hold mainly large U.S. companies, and about 60% of their holdings overlap, based on their latest N-PORT reports. FQAL tracks Fidelity's quality index and charges 0.15%. Applied Finance Valuation Large Cap ETF (VSLU) charges 0.49%. As of October 27, 2026, the two had nearly the same 1-year returns (12.6% for FQAL, 12.5% for VSLU). Over three years, VSLU was ahead at 24.8% a year against FQAL's 22.8%.
Is FQAL a good fit for a retirement portfolio?
It can work as a core stock holding, but it falls when the market falls. FQAL lost 33.7% in the early-2020 crash and 25% in the 2022 bear market. It took 14.2 months to recover from the 2022 drop. Its worst calendar year was 2022, at -19.53%. The yield is a modest 1.15%, paid quarterly, and the 0.15% fee is low. It may suit retirees who keep enough elsewhere to avoid selling in a downturn.
Has FQAL beaten the S&P 500?
Not lately. As of late October 2026, FQAL returned 12.6% over one year and 22.8% a year over three years. SPDR S&P 500 ETF (SPY) returned 13.1% and 24.8% over the same periods. FQAL's prospectus warns there's no guarantee its quality method will work. On the positive side, its one-year beta was 0.86, meaning it has moved a bit less than the overall market.