A smart beta exchange traded fund, the Fidelity Value Factor ETF (FVAL) debuted on 09/12/2016, and offers broad exposure to the Style Box - Large Cap Value category of the market.

The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

The fund is managed by Fidelity. FVAL has been able to amass assets over $939.42 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. This particular fund seeks to match the performance of the Fidelity U.S. Value Factor Index before fees and expenses.

The Fidelity U.S. Value Factor Index reflects the performance of stocks of large and mid-capitalization U.S. companies that have attractive valuations.

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

Annual operating expenses for FVAL are 0.16%, which makes it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.64%.

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

FVAL's heaviest allocation is in the Information Technology sector, which is about 30.70% of the portfolio. Its Financials and Consumer Discretionary round out the top three.

When you look at individual holdings, Apple Inc (AAPL) accounts for about 7.08% of the fund's total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).