Fidelity Disruptive Automation ETF

FBOT

Market cap $201M

As the market faces more and more concentration risk from the dominance of just a few AI hyperscalers, investors are on the lookout for ETF tools to diversify their portfolios while still chasing upside.

The Fidelity Disruptive Automation ETF offers concentrated exposure to companies enabling the AI infrastructure buildout, not a broad global equity proxy. FBOT has outperformed the MSCI ACWI recently, returning 27% over the past year, but exhibits high volatility and sector concentration. The fund's portfolio is a high-beta, picks-and-shovels play on AI capex, with material exposure to semiconductors, automation, and emerging markets.

AI investing remains a top priority for investors ahead of 2026. Finding the right way into that trend, however, is the real task.

Fidelity Investment's suite of disruptive ETFs are designed to capture growth opportunities arising from groundbreaking innovation and transformative technologies.

The current environment may present a compelling opportunity for investors seeking to increase their allocation to the automation industry via a highly-efficient ETF.  Fears around tariffs weighed heavily on automation stocks in April.

The Fidelity Disruptive Automation ETF focuses on companies innovating in automation, AI, robotics, and related technologies, aiming to capitalize on industry-changing developments. While better than previous reviews of other disruptive ETFs in the series, I still decided to give this ETF a Sell rating. The ETF employs a bottom-up stock-picking approach, benchmarking against the MSCI ACWI Index and MSCI All Country World Industrials Equal Weighted Index.

Thematic investing continues to garner attention at the midyear point on sustained artificial intelligence interest. For advisors and investors looking to diversify their thematic holdings, the Disruptive ETF suite from Fidelity offers strategies cutting across several sectors.

The year 2023 has proven to be an exceptional year for Wall Street. Now, let's see what ETF trends would be visible in 2024.