FMAG offers the same strategy used for the Fidelity Magellan mutual fund (FMAGX) in an ETF wrapper. FMAG delivers a portfolio of global companies of any capitalization, with growth and/or value traits. To screen for firms, the fund adviser uses fundamental analysisexamining factors such as an issuers financials and industry positionand looks at the overall market condition. Fidelity only discloses FMAGs full holdings on a monthly basis, with a 30-day lag. A tracking basket is published daily on its website, in place of the actual portfolio. This includes some of the funds holdings from recent disclosure, other liquid ETFs, cash, and cash equivalents. This structure is designed to track FMAGs daily performance, facilitate arbitrage opportunities, and mitigate the risk of front-running. However, investors should note that its non-transparent structure could result in wider spreads.
