Fidelity Enhanced International ETF

FENI

Market cap $5.1B

Fidelity Enhanced International ETF earns a buy rating for its consistent outperformance and lower risk vs. the MSCI EAFE Index benchmark. FENI's active, factor-based strategy delivers superior total returns, lower volatility, and a lower expense ratio (0.28%) compared to EFA's 0.32%. The ETF features dynamic sector and geographic tilts, emphasizing growth and defensive positions, but relies on a new management team since 2023.

Investors seeking international exposure may want to target companies using a discerning strategy as opposed to simply tracking an all-encompassing index. They can achieve this with the flexibility of an active ETF wrapper with the Fidelity Enhanced International ETF (FENI).

Fidelity Enhanced International ETF is an actively managed ETF in developed markets outside the US and Canada, using quantitative analysis to select stocks. The FENI fund is well-diversified across 300+ holdings, with a tilt toward large caps, Japan, and financials. FENI has outperformed its benchmark, EFA, and major factor-based international ETFs over the past decade.

For many investors, building a diversified portfolio is one of the first steps in investing. Fidelity Investments' extensive range of ETFs offers a powerful toolkit to achieve this.

For investors heavily weighted toward U.S. growth equities, international ETFs could be a useful diversification play for portfolios. Developed-market international equities, particularly in Europe, appear to have significant upside before reaching their long-term valuation levels relative to the S&P 500, according to recent research from Fidelity Investments.

The landscape of international equity ETFs often centers around benchmarks like the MSCI EAFE Index, which measures the performance of developed markets excluding the U.S. and Canada. While passive investing in such broad indexes is a common strategy, active international ETFs may be able to outperform benchmarks and add value to portfolios.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Fidelity Enhanced International ETF (FENI) with Chuck Jaffe of Money Life. The pair covered various aspects of the fund to give investors a deeper understanding of the ETF overall.

VettaFi's Head of Research Todd Rosenbluth discussed the Fidelity Enhanced International ETF (FENI) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.

As investors seek out attractive opportunities in the current market, international ETFs are gaining favor among many. Europe and other developed-market equities were the top-performing regions during the first quarter, with each benefiting from a weaker dollar.

FENI is an actively managed ETF investing in large-cap developed market stocks with a lower expense ratio than EFA and low concentration risk. FENI has outperformed the MSCI EAFE Index over the past decade, achieving higher total returns through a systematic, multifactor approach. Despite strong returns, FENI's lower technology sector exposure may limit performance in tech-driven market rallies compared to EFG.