ONEQ Profile
The Fidelity Nasdaq Composite Index Tracking Stock (ONEQ) is an exchange-traded fund (ETF) that tracks the performance of the Nasdaq Composite Index. This broad-based, market-capitalization-weighted index includes all domestic and international companies listed on the Nasdaq Stock Market. Launched by Fidelity Investments in September 2003, ONEQ is designed to provide investors with exposure to a wide range of Nasdaq-listed companies, including large-cap, mid-cap, and small-cap stocks. As of March 18, 2023, ONEQ held 2,161 stocks in its portfolio, with a total net asset value of approximately $27.9 billion.
ONEQ's portfolio is diversified across multiple sectors, with significant holdings in the technology, consumer discretionary, and healthcare sectors. The fund's top holdings include major companies such as Apple Inc., Microsoft Corporation, and Amazon.com Inc. As an index fund, ONEQ aims to replicate the performance of the Nasdaq Composite Index by holding a representative sample of the index's constituents. The fund invests in stocks listed on the Nasdaq Stock Market, which is renowned for its concentration of technology and growth-oriented companies.
ONEQ has an expense ratio of 0.21%, which is relatively low compared to other actively managed ETFs. The fund is managed by Fidelity Investments, one of the largest asset managers globally, known for offering low-cost investment options. Investing in ONEQ offers several potential benefits, including exposure to a broad range of Nasdaq-listed companies, encompassing some of the world's largest and most innovative firms. The index methodology used by ONEQ ensures comprehensive representation by holding a representative sample of the index's constituents. Additionally, the low expense ratio of the fund may result in higher net returns for investors.
However, investing in ONEQ also carries risks. The fund's performance may be affected by changes in the stock market, specific industry sectors, and economic or political developments. The concentration of technology and growth-oriented companies on the Nasdaq Stock Market may result in increased volatility or underperformance compared to other investment strategies. Despite these risks, ONEQ remains an attractive option for investors seeking broad exposure to Nasdaq-listed companies with the potential for growth and innovation.
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