Fidelity International Value Factor ETF

FIVA

Market cap $272M

I am cautious about overheated U.S. markets and seek value in overlooked areas like the Fidelity International Value ETF (FIVA). FIVA offers exposure to large- and mid-cap developed international stocks with relatively attractive valuations, trading at a reasonable 16x P/E ratio. The ETF's 3.49% dividend might seem appealing, but its distributions have been volatile due to currency impacts and cyclical holdings.

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.

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.

International developed market stocks are outpacing U.S. stocks in 2025, a rare occurrence since 2014.  Fidelity International Value Factor ETF is outperforming SPDR® S&P 500® ETF this year. FIVA invests in global ex-U.S. value stocks across diversified sectors and market capitalizations.  The analysis aims to determine why FIVA is beating SPY by reviewing holdings, distributions, and portfolio strategy. Since both factor I see that are benefiting FIVA over SPY could end at any time, I gave the ETF a Hold rating.

Have tariffs on the mind? U.S. investors facing market turbulence may be inclined to look for diversification abroad.

As advisors look to diversify client portfolios, international equity ETFs may be worth consideration. Diversification should be a key area of focus this year, amid an uncertain economic outlook and potential for uneven market returns after the policy changes implemented by the new administration.

For those looking to build a portfolio of income-producing assets that may allow one to live off of dividends in retirement (without having to sell much, if all, of one's invested shares), the following three Fidelity ETFs may be worth considering.

Fidelity is one of the leading brokerage firms that offers a wide range of low-cost ETFs.

Building a sizable nest egg can take decades. But once it's there, it can fuel a sizable income stream for a lifetime.

Is it time to invest abroad? The U.S. stock market remains robust even despite so much hemming and hawing entering 2024.