(FELV) Fidelity Covington Trust - Ratings and Ratios

Fidelity Covington Trust (NYSE ARCA:FELV) is an exchange-traded fund (ETF) designed to track the performance of large-cap value stocks in the U.S. equity market. The fund typically allocates at least 80% of its assets to common stocks included in the Russell 1000® Value Index, a market-capitalization-weighted index that focuses on the value segment of large-cap companies. The index includes firms with lower price-to-book ratios and other value-oriented metrics compared to the broader market.

The funds adviser employs a research-intensive approach to identify long-term drivers of stock returns. This strategy considers multiple factors, including valuation, growth prospects, company quality, and other fundamental metrics. By focusing on these elements, the fund aims to capture opportunities in undervalued large-cap companies with potential for long-term appreciation.

From a technical standpoint, FELV has shown a mixed trend. Its 20-day moving average (SMA 20) of 29.06 is below its 50-day moving average (SMA 50) of 30.19, indicating recent weakness. However, the 200-day moving average (SMA 200) of 30.48 remains above the current price, suggesting long-term support. The Average True Range (ATR) of 0.75 reflects moderate volatility, while the average 20-day volume of 291,550 shares indicates decent liquidity.

With assets under management (AUM) of $2.134 billion, FELV is a sizeable ETF in its category, demonstrating investor confidence in its strategy. Its focus on large-cap value stocks provides exposure to established companies with potentially stable earnings and attractive valuations.