The Fidelity Value Factor ETF (FVAL) is an open-ended fund that focuses on value investing.
The fund???s objective is to provide returns that reflect the performance of stocks of large- and mid-cap U.S. companies that have attractive valuations. By definition, investors who engage in value investing seek out stocks that trade for less than their intrinsic values or, put more simply, stocks that are undervalued.
To do this, FVAL screens the 1,000 largest U.S. stocks to see if they meet four factors: high free-cash-flow yield, low enterprise value to EBITDA (earnings before interest, taxes, appreciation and amortization), low price-to-tangible-book value and low price-to-future earnings.