(FESM) Fidelity Covington Trust - Ratings and Ratios

The Fidelity Covington Trust (NASDAQ:FESM) is an exchange-traded fund (ETF) designed to track the performance of small-cap U.S. equities. The fund typically allocates at least 80% of its assets to common stocks included in the Russell 2000® Index, a market capitalization-weighted benchmark that represents the small-cap segment of the U.S. equity market. The Russell 2000® Index is widely regarded as a barometer for small-cap performance, comprising approximately 2,000 publicly traded companies with smaller market capitalizations compared to larger indices like the S&P 500. The funds adviser employs a research-intensive investment approach, focusing on identifying long-term drivers of stock returns. These drivers may include valuation metrics, growth prospects, company quality, and other fundamental factors. The strategy aims to capitalize on mispriced opportunities and structural advantages in the small-cap universe.

From a technical perspective, FESM has shown a mixed trend pattern. The funds 20-day moving average (SMA 20) of 27.79 is below its 50-day moving average (SMA 50) of 29.42, indicating potential short-term weakness. However, the 200-day moving average (SMA 200) of 31.57 remains above the current price of 28.65, suggesting that the longer-term trend may still be bearish. The Average True Range (ATR) of 1.02 reflects moderate volatility, while the average 20-day volume of 277,800 shares indicates sufficient liquidity for most investors. The funds assets under management (AUM) of $1.646 billion highlight its scale and stability in the small-cap ETF category.