Have tariffs on the mind? U.S. investors facing market turbulence may be inclined to look for diversification abroad. Entering 2025, many investors faced significant concentration risk, with just a handful of firms driving much of 2024’s market performance. Now, with domestic markets also facing tariff risks, investors have even more reason to consider diversifying. An international value ETF like FIVA could, then, provide a strong option to do so.
See more: 4 Reasons This Large-Cap Can Perform in Uncertain 2025
The Fidelity International Value Factor ETF (FIVA ) launched in 2018. The strategy charges an 18 basis point fee to track the Fidelity® International Value Factor Index. In doing so, the international value ETF holds about 100 stocks. Stocks are ranked by factors like high free cash flow yield, low enterprise value to EBITDA, price to tangible book value and price to forward earnings metrics. It looks to meet those metrics via an emphasis on firms with attractive valuations.
The International Value ETF Case
What kind of countries have the largest weights in the strategy? According to ETF Database data, Japan-based firms dominate, with Canada and U.K.-based companies also present. The roster of firms in the ETF’s holdings include BAE Systems (BA) as well as Sony Group Corporation (SONY).
So, why an international value ETF approach? Firms from abroad that meet value standards could be better positioned to handle market turbulence.
Over the last five years, FIVA has returned 13.88%, per Fidelity Investments data as of March 31. That outperformed its market benchmark, the MSCI ACWI Ex USA NR USD Index, in that time frame.
With its relatively low fee and crafted exposure, FIVA could help investors get that foreign exposure. For those considering options to refresh portfolios, that kind of diversification could provide a big boost.
For more news, information, and analysis, visit the ETF Investing Channel.
Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
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