FBCV

FBCV is one of Fidelity's first ETFs to launch with its own structure for an actively-managed, non-transparent product. The fund selects global large-cap undervalued stocks, as compared to other companies in their same industry. The fund may also reach down into the midcap space as well. The selection is based on favorable fundamental factors such as cash flow, earnings and sales. Portfolio managers are afforded slightly more flexibility with the ETF in terms of dipping down into the midcap space as compared to the firm's mutual fund. Unlike other ETFs, FBCV only discloses holdings on a monthly basis with a 30-day lag. Instead, a "proxy portfolio,” which should closely correlate to the actual holdings, is provided to help traders effectively arbitrage premiums/discounts as they occur. Investors should, however, take into consideration the non-transparent structure which could result in greater price disparity during volatile markets.