Investors are on the hunt for international equities exposure. Despite some notable global uncertainty of late, U.S. investors have poured significant capital into international equity strategies and opportunities. That then poses an important question for investors — which fund is the right one to get that exposure? Fidelity Investments’ enhanced international equities ETF FENI presents one notable option.
See more: As International Equities Flows Set Records, Lean on Fundamentals
The Fidelity Enhanced International ETF (FENI ), charges a 28 basis point fee to provide an active international equities strategy in the ETF wrapper. The strategy, which will hit its three-year ETF milestone in November (after converting from a mutual fund), has delivered robust returns over the last 12 months.
According to ETF Database data, the fund has returned 27.1% in that time. That compares positively to the ETF Database Foreign Large Cap Equities Category’s average, which comes in at 24.5% for that period.
The strategy looks to take a step beyond rivals in the space with its computer-aided active approach. FENI takes an active, targeted approach, typically investing at least 80% of assets in common stocks within the MSCI EAFE index. The fund looks to beat that index with a combination of computer-aided quant investing and active nous.
The international equities ETFs’ enhanced approach also considers factors like growth, historical valuation, and profitability.
The details of the fund’s enhanced strategy, then, could make it a worthwhile addition amid uncertain market conditions. Should oil rise drastically, active flexibility could help find companies durable enougidh to outlast those issues. For those looking to add some international equities exposure, FENI may deserve conseration.
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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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