FELC: US Market Either At AI-Disruption Risk Or Overvalued

2026-02-16 07:27:08 ET

The Fidelity Enhanced Large Cap Core ETF ( FELC ) is a large-cap-focused ETF following the US market. In other words, exposure is going to be towards some of the biggest US index movers, namely the megacap tech stocks highly leveraged and in a position to preside over the expansion of AI, particularly LLMs for the moment, in developed economies (e.g., 8.04% ( NVDA ) allocation versus 7.6% of NVDA in the ( IVV )). The markets are going sideways lately, and we believe it's an initial reflection of an evolving and unfavorable market dynamic, which is that the US market right now has two types of stocks: those that could be at risk of AI disruption or become perceived to be at risk and those that are overvalued and potentially part of an AI bubble. With the circular investments concentrated among the large-cap stocks, FELC is probably more indexed towards the latter risk than the former, but we'd avoid these bets in any case, as ultimately there is a very strong correlation between FELC and the US market index ETFs anyway....

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