What Is the FDLO ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
A smart beta ETF that pursues stable returns and low volatility. It aims to provide downside protection while keeping market participation, making it suitable for long-term investors.
SubscribeWhat Is This ETF?
It tracks a proprietary Fidelity index and builds its portfolio by selecting stocks with sound financial health and low share price volatility.
It suits conservative investors who want to limit losses during sharp market declines while still sharing in the growth of large-cap stocks.
Launched by Fidelity in 2016, it is a passively managed (index-tracking) ETF.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | Fidelity U.S. Low Volatility Factor Index |
| Management Style | Passive (smart beta) |
| Rebalancing Frequency | Twice a year |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.15% |
It evaluates stocks based on historical volatility and earnings stability, aiming for steadier performance than the broader index. It mainly holds high-quality stocks with strong factor scores from among the constituents of the Russell 1000 Index.
- Applies Fidelity's proprietary low volatility selection model
- Builds a stable portfolio centered on large-cap stocks
Size and Costs
Assets under management (AUM) stand at $1.5B, and the total expense ratio is 0.15% per year.
Its fee level is competitive against similar products such as USMV, SPLV, and LGLV, and what sets it apart is that it considers fundamental indicators in addition to simple low volatility.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeDuring periods of rising volatility, it has shown solid defensiveness relative to the market index, and its stable price movement has supported a record of consistent and reliable performance.
When interest rate uncertainty and concerns about an economic slowdown grow, money tends to flow into defensive assets, and demand for long-term diversified investing continues.
Strengths and Weaknesses
It offers excellent downside protection and low fees, but in bull markets it may not fully keep pace with market gains.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
USMV, SPLV, and LGLV, shown in the table, are highly representative low volatility competitors, with subtle differences in fees and index construction methods. If you want to combine a value factor, you can consider VTV or SPYV, and if you are seeking high-quality growth, QUAL is a good alternative. If you want stable dividend growth, VIG is also worth reviewing.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 USMV | iShares MSCI USA Min Vol Factor ETF | $102.93 | -0.2% | $24.1B | 0.15% | 1.37% | +10.4% |
 SPLV | Invesco S&P 500 Low Volatility ETF | $76.57 | +0.3% | $7.5B | 0.25% | 2.16% | +8.1% |
 LGLV | State Street SPDR US Large Cap Low Volatility Index ETF | $188.23 | +0.2% | $1.2B | 0.12% | 2.06% | +8.9% |
 XMLV | Invesco S&P MidCap Low Volatility ETF | $66.05 | +0.1% | $726.5M | 0.25% | 3.02% | +7.2% |
 VFMV | Vanguard U.S. Minimum Volatility ETF | $148.14 | -0.6% | $505.4M | 0.13% | 1.55% | +14.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| AAPL | Apple Inc | 0.15% | $344.63 | -1.2% | $5.03T | 39.5 | 0.32% |
| GOOGL | Alphabet Inc | 0.07% | $279.84 | -1.4% | $3.41T | 14.6 | 0.31% |
| MSFT | Microsoft Corp | 0.12% | $521.91 | -1.6% | $3.88T | 27.3 | 0.74% |
| GOOG | Alphabet Inc | 0.06% | $278.22 | -1.4% | $3.41T | 14.5 | 0.31% |
| AVGO | Broadcom Inc | 0.09% | $326.08 | -5.5% | $1.56T | 41.6 | 0.8% |
| AMZN | Amazon.com Inc | 0.09% | $240.35 | -1.4% | $2.59T | 19.4 | - |
Investor Checkpoints
These are the key points to review when considering an investment in FDLO. It is advisable to aim for risk-efficient returns rather than outperformance of the market.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Whether it stays low relative to the category average | Stable level |
| 📊 Sector Weighting | Check for excessive concentration in defensive sectors | Regular review needed |
| 📈 Downside Protection | Check actual defensive performance in recent down markets | Good level |
| 📅 Dividend Income | Check the record of stable distribution payments | Confirmed |
Although the fund is made up of stable stocks, investors should fully recognize that it cannot be entirely free from systematic declines in the overall stock market or the risk of a sharp economic recession.
It can be an excellent complement to a core portfolio for investors who want stable growth while reducing volatility stress, and it is a product from which stable returns can be expected over the long term.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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