(FCVH) Fidelity U.S. Value - Ratings and Ratios

The Fidelity U.S. Value Currency Neutral ETF (FCVH) is an exchange-traded fund that tracks the Morningstar US Market TR CAD index, providing investors with exposure to U.S. equities with a value tilt, while hedging against currency fluctuations. This ETF is designed for investors seeking to capitalize on the potential for U.S. value stocks to outperform, without being exposed to the risks associated with currency exchange rate movements.

From a technical analysis perspective, the ETFs price action indicates a bullish trend, as it is currently trading above its 20-day, 50-day, and 200-day simple moving averages (SMA20, SMA50, and SMA200). The Average True Range (ATR) suggests a relatively low volatility, with a recent ATR of 0.30, representing 1.63% of the current price. This implies that the ETF is experiencing a period of consolidation, potentially setting the stage for a breakout. Given the current technical setup, a potential target price could be the 52-week high of $19.27, representing a 6.2% upside from the current price.

Fundamentally, the ETFs assets under management (AUM) stand at $29.64 million CAD, indicating a relatively small but still viable fund. The currency-neutral aspect of the ETF is particularly noteworthy, as it mitigates the impact of exchange rate fluctuations on the funds performance, allowing investors to focus on the underlying stock selection. The U.S. value equity space has historically been a fertile ground for active management and factor-based investing, and this ETF provides a cost-effective means of accessing this market segment.

Combining technical and fundamental insights, a forecast for FCVH suggests that the ETF is poised for a potential price appreciation, driven by the underlying U.S. value equities and the currency-neutral hedge. If the ETF breaks out above its 52-week high, it could potentially target the next resistance level, around $20.50, representing a 13% upside from the current price. Conversely, a decline below the SMA200 could signal a reversal, with a potential target of $16.50. As such, investors may consider accumulating FCVH on dips, with a stop-loss below the SMA200, to capitalize on the potential upside.