Fidelity International High Dividend ETF

FIDI

Market cap $285M

Which one of these issuers is better for dividend investing really comes down to what kind of strategy you want. Vanguard wins as far as the breadth of its offerings is concerned.

Shopping for Fidelity exchange-traded funds (ETFs)? A good place to start is by looking at the top nine performers of 2025, all of which returned over 27% last year.

Investing in dividend-paying stocks is one way to make your money work for you. As companies grow, they generate a higher profit and share a part of the profit with the shareholders as a cash dividend.

It's smart to focus on dividend-paying investments for your long-term portfolio. These three Fidelity ETFs are well worth considering.

Equity investors will appreciate international stocks as a means to diversify their portfolios, but also as a way to achieve other avenues for dividends. They can meld both benefits with the Fidelity International High Dividend ETF (FIDI).

Fidelity International High Dividend ETF is rated a Hold due to higher risk, lower yield, and higher costs than competitors like LVHI. The fund's portfolio is more concentrated in cyclical sectors and specific countries, increasing volatility and exposure to economic/geopolitical shocks. Despite a lower turnover rate, FIDI's expense ratio (0.57%) and poor liquidity make it less attractive than LVHI, which offers better risk management.

Investors looking to not only grow their nest egg for retirement, but also generate significant (and hopefully growing) passive income streams to live off of in retirement, have a number of excellent options to choose from.

FIDI offers solid international dividend exposure with a unique methodology, but its long-term diversification benefits are limited in today's global markets. Yield and total return are competitive with US peers, but FIDI is outperformed by international alternatives like LVHI, which boasts better risk-reward and drawdown management. FIDI's portfolio construction is thoughtfully diversified by country and sector, though its yield and returns don't significantly outshine the competition.

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.

When you're young, it makes sense to buy riskier growth stocks that have high potential upside.