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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.
Factor investing allows for targeted equity exposure for those seeking specific investment outcomes. For example, factors may be used to enhance a portfolio's risk and return profile or help generate income.
The ETF space tends to innovate in waves. First came plain vanilla cap-weighted index funds.
Winners will be announced on ETF.com on Tuesday, March 17 at 10:00 a.m. ET.