Fidelity U.S. Value Currency Neutral 

This passively managed ETF seeks to invest in undervalued large and mid-capitalization U.S. equities. It employs a smart beta investment approach, guided by a proprietary, rules-based index designed to provide exposure to specific strategic factors. The fund begins by considering the top 1,000 U.S. stocks by market size. From this universe, candidates are screened based on a comprehensive factor score. This score incorporates several metrics: free cash flow yield, EBITDA relative to enterprise value, tangible book value compared to share price, and anticipated earnings over the next twelve months against share price. For financial institutions like banks, however, the calculation exclusively utilizes return on equity and the debt-to-asset ratio. To neutralize any potential size bias, the composite score is integrated with a size factor. Within each industry sector, securities are chosen based on their size-adjusted composite scores. The resulting portfolio typically comprises between 60 and 100 holdings. Sectors demonstrating superior returns on invested capital are allocated a greater weight. The index undergoes rebalancing twice a year.