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This ETF offers investors exposure to a diverse selection of companies operating outside the United States. These holdings are strategically chosen based on their strong performance across several key investment factors, namely, attractive valuations (value), robust financial health (quality), reduced price fluctuations (low volatility), and positive recent price trends (momentum). Furthermore, a crucial objective is to identify companies that exhibit a lower degree of correlation with the U.S. stock market, thereby aiming to enhance portfolio diversification.
Is FDEV's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
Shopping for Fidelity exchange-traded funds (ETFs)? A good place to start is by looking at the top nine performers of 2025, all of which returned over 27% last year.
With the current growth-fueled market environment centered around Magnificent Seven names benefiting from the artificial intelligence (AI) theme, investors may want to look outside the U.S. to seek additional opportunities. One fund to consider in that quest for performance abroad is the Fidelity International Multifactor ETF (FDEV).
FDEV is a passively managed ETF that leverages a sophisticated, factor-driven strategy applied to the developed world equities. At this point, FDEV has a Japan-heavy portfolio with a low P/E and financials as the key sector. Its overlap with IDEV is close to 100%. Unfortunately, its long-term returns have been mostly a disappointment, as it has trailed SCHF and IDEV, as well as a few peers.
The market regime may continue to shift in response to easing rates, potentially serving as a catalyst for SMIDcap and mid-cap companies. The rate cut cycle is expected to provide more relief for smaller and more leveraged companies needing more access to capital markets than larger companies.
Market volatility remains a fairly persistent aspect for investors to contend with in the back half of the year. With elevated short-term volatility risks in the fourth quarter, Fidelity offers five ETFs worth consideration, including a screen for lower volatility stocks.