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Posted by
Two Blokes Jul 24 -
Filed in
Stock
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7 views
FVAL is a misleading 'value' play. Despite its branding, it holds many of today's most expensive growth stocks, including Nvidia and Tesla. Valuations resemble the dot-com era. With the S&P 500 CAPE ratio above 38 and the fund's top holdings averaging a P/E of over 43, current valuations are historically extreme and risky. Nearly 40% of the Fidelity Value Factor ETF is tied up in just 10 stocks, many of which are priced for perfection and vulnerable to a sentiment shift.
