The financial sector is offering a growth opportunity set that can provide investors with potential upside. Legacy banking institutions are entering a new generation of agile firms, empowered by advancements such as artificial intelligence (AI) and machine learning. That said, the Fidelity Disruptive Finance ETF (FDFF ) can capture fintech evolution with the flexibility of an actively managed fund.
FDFF constructs its portfolio by giving investors exposure to disruptive finance pioneers. The fund utilizes deep fundamental analysis paired with quantitative portfolio construction to identify firms developing entirely new value networks, digital payment systems, and unconventional business models. This active, flexible approach allows Fidelity’s portfolio managers to locate growth and value opportunities across global markets.
Inside FDFF's Disruptive Value Chain
FDFF’s high-conviction is apparent in its top allocations (as of 5/29/26). The top holdings reflect a calculated balance between global transaction processing giants, asset management innovators, and next-generation banking ecosystems.
Core positions in household financial sector names like BlackRock, Visa, and Mastercard anchor the portfolio’s large-cap exposure. These are paired with pure-play fintech innovators like Block Inc. These companies are capturing market share via digital wallets and decentralized commerce.
To monetize shifts in private credit and consumer lending models, the strategy relies on specialized financial operators like Capital One. Additionally, the fund features private markets giant Apollo Global Management Inc. and specialty insurer Hiscox Ltd.
Global Diversification
As mentioned, the fund scours for opportunities across geographic borders for added diversification. This allows FDFF to capitalize on on localized digital banking booms, including Singapore’s DBS Group Holdings, Spain’s Bankinter SA, and Italy’s FinecoBank SpA.
For asset investors navigating the rest of 2026, FDFF converts a standard financial sector sleeve into a potent growth tool. By backing visionary financial leaders that are redefining consumer pricing, transaction delivery, and underwriting metrics, the fund delivers optimized exposure to a financial sector that is continuously evolving with technology.
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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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