Fidelity Enhanced Large Cap Core ETF (FELC)
ARCA ARCA Primary Summary
FELC Chart
FELC: US Market Either At AI-Disruption Risk Or Overvalued
Fidelity Enhanced Large Cap Core ETF is heavily indexed to US megacap tech, much like the regular US market index. FELC trades at a slight premium valuation (25.9x) versus the US market median (23.6x), with strong correlation to broad market index ETFs despite a higher expense ratio. The issue is that with AI stocks already priced to perfection, their successes only risk hurting other parts of the market, with this week demonstrating those AI scares.
FELC: Growth, Quality Heavy ETF With Unconvincing Risk-Adjusted Returns
Fidelity Enhanced Large Cap Core ETF is an actively managed vehicle focused principally on S&P 500 names that it believes have outperformance potential. In the current iteration, the FELC portfolio has a GARP tilt combined with large exposure to quality and momentum. Unfortunately, FELC has underperformed IVV, as well as VOO, SPY, and SPYM since its conversion into an ETF in November 2023.
FELC: An Actively Managed ETF That Fails To Outperform The S&P 500
Fidelity Enhanced Large Cap Core ETF is an actively managed fund aiming to outperform the S&P 500, but closely mirrors its holdings. FELC charges higher fees (0.18% expense ratio) than VOO (0.03%), yet delivers nearly identical or worse performance and lower income metrics. The fund's higher concentration and turnover add risks and costs without delivering meaningful outperformance or risk reduction compared to VOO.
Fidelity Enhanced Large Cap Core ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 16,800 | $579,431.3 | $714,942.48 | $135,511.18 | 23.39% |
 Woodard & Co Asset Management Woodard & Co Asset Management Group Inc. | 192 | $7,155.84 | $8,170.77 | $1,014.93 | 14.18% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 33,551 | $1.1M | $1.42M | $325,530.32 | 29.61% |
| YA Yinka Akinsola Blue Trust Inc. | 898 | $29,403.14 | $38,106.63 | $8,703.49 | 29.6% |
 Jeff Ameen Spire Wealth Management | 8,417 | $280,434.59 | $357,469.99 | $77,035.4 | 27.47% |
Fidelity Enhanced Large Cap Core ETF (FELC) FAQ
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Fidelity Enhanced Large Cap Core ETF Profile
| ARCA Exchange | US Country |
Overview
The described fund is a financial investment vehicle that primarily focuses on integrating its assets into stocks listed within the S&P 500® Index. This index is a renowned market capitalization-weighted indicator composed of 500 select common stocks, identified for their market size, liquidity, and representation of various industry sectors, hence serving as a benchmark for U.S. equity market performance. With a strategy of investing at least 80% of its assets in these stocks, the fund aims to mirror or even surpass the economic success denoted by the index. Investment decisions are made using sophisticated computer-aided quantitative analysis which evaluates historical data across several metrics including valuation, growth, and profitability. This analytical approach helps in picking a diversified portfolio of stocks, including both domestic and international issuers, with promising potential for higher total returns.
Products and Services
- S&P 500 Index Investment
The core offering involves investing a substantial portion of the fund's assets into stocks that are part of the S&P 500 Index. This strategic placement is designed to ensure that the fund's performance closely aligns with that of the index, benefiting from its representation of the broader U.S. equity market. The emphasis on stocks within this index underlines the fund's preference for investments that demonstrate market size, liquidity, and a broad industrial reach.
- Quantitative Analysis-Based Stock Selection
In distinguishing which stocks to invest in, the fund applies a rigorous computer-aided quantitative analysis. This methodology includes an assessment of historical factors such as valuation, growth, profitability among others, guiding the selection process towards stocks deemed to have a high potential for generating superior total returns. The quantitative analysis ensures a data-driven, mathematical, and objective approach to stock selection, aiming to reduce biases and improve investment outcomes.
- Diversified Portfolio Management
Another key service is the management of a diversified investment portfolio. By employing a variety of stocks from both domestic and international issuers that meet its stringent criteria, the fund spreads its exposure across numerous sectors and regions. This diversification is intended to mitigate risk while potentially enhancing the fund's opportunity to capture gains from different markets and economic sectors. The goal of achieving a diversified investment portfolio aligns with the fund's objective of attempting to outperform the S&P 500 Index.
