Fidelity Low Volatility Factor ETF

FDLO

Market cap $1.5B

The Fidelity Low Volatility Factor ETF targets large U.S. stocks with low price and earnings volatility, aiming for market-like returns with reduced risk. FDLO has lagged the Russell 1000 in both total and risk-adjusted returns since inception, particularly over the past year. Despite lagging the benchmark, FDLO has outperformed most low-volatility ETF peers since 2018.

The fourth quarter of 2025 may bring high hopes of a year-end rally to end the year. However, ongoing market uncertainty could make it a bumpy ride to the finish.

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FDLO offers balanced sector exposure, emphasizing mega and large caps, especially in technology, for growth while maintaining low volatility compared to peers. The fund's sector-neutral approach and selective stock picking drive strong profitability and historical earnings growth, justifying its premium valuation among low-volatility ETFs. FDLO outperforms most low-volatility peers on returns and risk-adjusted metrics, though it lags the broader market; its volatility remains among the lowest in its category.

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Volatility intensifies after Powell warns of rising inflation and slowing growth. The ETFs discussed here could be solid bets in the current choppy market.

Fidelity Low Volatility Factor ETF aims to generate market-like returns with less volatility and a similar sector breakdown. The FDLO ETF has underperformed the Russell 1000 since inception, but has shown better resilience in market downturns, especially recently. FDLO is among the best performing low-volatility ETFs over the last 7 years.

Uncertainty is the market's current buzz word. Concerns about policy, recession risk, inflation, consumer confidence, economic growth, and geopolitics have stock prices on a rollercoaster ride this year.

Volatility intensifies due to Trump's tariff plans and signs of economic slowdown. These ETFs could be solid investment options in the current choppy market.

FDLO invests in about 130 low volatility large-cap U.S. stocks, balancing return and volatility with a low expense ratio of 0.15%. The fund's overweight in technology stocks, including Apple, Microsoft, Alphabet, and Amazon improves its growth potential in the long run. FDLO offers better downside protection than the broader market, particularly during market corrections, due to its focus on low volatility and value stocks.