Fidelity Sustainability U.S. Equity ETF (FSST)

Overview

The Fidelity Sustainability U.S. Equity ETF (FSST) seeks to provide investment results that correspond to the performance of the Fidelity Sustainability U.S. Equity Index. The fund primarily invests in U.S. companies with favorable sustainability profiles based on environmental, social, and governance (ESG) factors.

Reputation and Reliability

Fidelity is a well-established and reputable financial services company with a long track record of managing investment funds.

Management Expertise

Fidelity has a large and experienced team of portfolio managers and analysts specializing in various investment strategies, including sustainable investing.

Goal

To provide investment results that correspond to the performance of the Fidelity Sustainability U.S. Equity Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, attempting to replicate the performance of the Fidelity Sustainability U.S. Equity Index. This index focuses on U.S. companies that exhibit strong ESG characteristics.

Composition The ETF primarily holds stocks of U.S. companies selected based on their sustainability profiles. The fund may also invest in derivatives and other investment companies to achieve its objective.

Market Share: FSST's market share within the sustainable U.S. equity ETF market is still developing as it's a relatively newer fund compared to established competitors.

Total Net Assets (AUM): 253900000

Key Competitors

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Xtrackers S&P 500 ESG ETF (SNPE)

Competitive Landscape

The sustainable investing ETF market is competitive, with several established players. FSST benefits from Fidelity's brand recognition and investment expertise. However, it faces competition from larger ETFs with greater AUM and liquidity. FSST differentiates itself through its proprietary Fidelity Sustainability U.S. Equity Index.

Historical Performance: Past performance is not indicative of future results. Data needs to be sourced and inputted here for a detailed breakdown over different time periods.

Benchmark Comparison: A comparison to the Fidelity Sustainability U.S. Equity Index would be necessary to assess effectiveness. Data needs to be sourced and inputted here for a detailed comparison.

Expense Ratio: 0.12

Average Trading Volume

FSST's average trading volume indicates moderate liquidity, facilitating relatively easy buying and selling of shares for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting reasonable liquidity and minimizing trading costs.

Market Environment Factors

FSST is affected by economic growth, interest rates, inflation, and investor sentiment toward sustainable investing. Increased focus on ESG factors drives demand for such ETFs.

Growth Trajectory

FSST's growth is tied to the increasing adoption of ESG investing principles. Changes to holdings reflect the index methodology and sustainability criteria.

Competitive Edge

FSST benefits from Fidelity's brand recognition and established distribution network. Its proprietary index offers a unique approach to sustainable investing, potentially differentiating it from competitors that track more common ESG benchmarks. FSST's low expense ratio provides a cost advantage. These factors combined can attract investors seeking both financial returns and sustainable investments. The ETF's integration within Fidelity's broader suite of investment products allows for easy allocation shifts for existing clients.

Volatility

FSST's volatility is expected to be similar to the broader U.S. equity market, given its composition. Historical data is needed to assess specific volatility metrics.

Market Risk

FSST is subject to market risk, meaning that its value can fluctuate based on overall market conditions and investor sentiment. Specific risks include concentration in certain sectors deemed sustainable and potential for underperformance relative to non-ESG focused benchmarks.

Ideal Investor Profile

FSST is suitable for investors seeking exposure to U.S. equities with a focus on sustainability. Ideal investors are those who prioritize ESG factors in their investment decisions.

Market Risk

FSST is best suited for long-term investors seeking to align their investments with their sustainability values. It can be used as a core holding in a diversified portfolio.

Fidelity Sustainability U.S. Equity ETF (FSST) offers exposure to U.S. equities with a focus on companies exhibiting strong ESG characteristics. It aims to track the Fidelity Sustainability U.S. Equity Index and benefits from Fidelity's brand recognition and low expense ratio. FSST is well-suited for long-term investors who prioritize sustainable investing. However, it faces competition from larger, more established ESG ETFs and is subject to market risks. AUM indicates a growing but still emerging presence in the sector.

Data Sources:

• Fidelity Investments Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is estimated and may vary based on source. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.