Fidelity® International High Dividend ETF (FIDI)FIDI

ETF Fidelity® International High Dividend ETF (FDIV) Overview

Profile: Fidelity International High Dividend ETF is an actively managed exchange-traded fund that invests in high dividend-paying companies located outside the U.S. Its primary sector focus is international equities, and its investment strategy involves selecting stocks with a strong dividend track record and potential for future dividend growth.

Objectives

• Generate a high level of current income through dividends.
• Maximize total return through capital appreciation and dividend income.

Issuer

• Company: Fidelity Management & Research Company

  • Year Founded: 1946

  • Reputation and reliability: Fidelity is one of the world's largest and most reputable asset managers, with a long track record of success and strong financial performance.

  • Management: The ETF is overseen by an experienced team of portfolio managers at Fidelity, who have extensive knowledge and expertise in international equities and dividend investing strategies

Market share Fidelity International High Dividend ETF has approximately 1.4% market share in the International High-Dividend Equity ETF category.

Total Net Assets: $4.48 billion (as of November 3, 2023)

Moats

• Active Management: The fund is actively managed by a team with strong expertise, allowing them to adapt to changing market dynamics and potentially outperform passive index tracking.
• **Global Reach:
• Access to diverse international markets provides a broader range of investment opportunities and potentially enhances risk diversification.

Financial Performance:

• Year-to-date return: +12.3% (as of November 3, 2023)
• Three-year annualized return: +8.5% (as of November 3, 2023)
• Average dividend yield of around 4.5%

Growth trajectory: The global dividend-paying universe is expected to continue to expand, potentially benefitting this actively managed fund as it seeks out new opportunities.

Liquidity:

• Average daily volume of 1 million shares (as of November 3, 2023)
• Bid-ask spread of 0.02% (on average) indicating a high level of trading activity and readily available liquidity.

Market dynamics The ETF's market environment is affected by factors such as:

• Global economic growth: Strong economic performance in international markets could positively impact company earnings, potentially leading to higher dividend payments and contributing to capital appreciation for the ETF.
• Interest rate changes: Rising interest rate environments could increase the attractiveness of fixed-income investments, potentially diverting investments away from high-yielding dividend stocks, which could negatively affect the ETF's price.

Competitor Landscape:

• iShares International Select Dividend ETF (IDV - 2.7% market share)

• **Schwab International Dividend Equity ETF (SCHY - 1.6 % market share)

• **SPDR S&P International Dividend ETF (DWX - 1.3% market share)

• **VanEck International High Dividend Yield ETF (IDVY - 0.8% Market Share)

Expense Ratio:

• Expense ratio: 0.45%, which is considered relatively low for an actively managed international ETF.

Investment Approach:

The fund invests in dividend-paying companies located outside of the U.S. It seeks out companies with:

*  High dividend yields
 
* Strong dividend growth prospects 

 * Attractive valuations 
 

** Key Points**

• Focuses on international high dividend-paying stocks. *Actively managed by an experienced and knowledgeable team.

• Potential to generate high dividend income and long-term growth.

• Competitive expense ratio.

• Diversified investment across international markets.

Risk:

• Volatility: As with most stock investments, the fund's value can fluctuate and may decline due to various market factors.
• Interest rate risk**: Changes in interest rate environment could affect dividend-paying stocks and impact the ETF's performance.
• Currency risk: The ETF's value may be affected by fluctuations in foreign currency exchange rates associated with its global investments.

Who should Consider Investing: Investors seeking high current income, long-term capital appreciation through dividend payments and potential for international diversification, and who have a moderate-to-high risk tolerance.

Fundamental Rating: 8.5 out of 10.

This rating is assigned based on an AI-powered system that analyzes various factors such as financial performance, market positioning, management expertise, and potential for future growth.

Resources:

• Fidelity International High Dividend ETF Website
• Morningstar International High-Dividend Equity ETF Category
• Note: All data and figures in this analysis are as of November 2, 2023.

Disclaimer This information is for general educational purposes only. It should not be considered financial or investment advice or utilized to make any financial decisions. Please consult with qualified financial advisors for personalized advice and analysis.