Fidelity Disruptive Medicine ETF

FMED

Market cap $57.4M

Healthcare has been the worst-performing sector in the S&P 500 this year. But when it comes to unlocking potential capital growth ahead, that may not be all bad news.

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

Fidelity Disruptive Medicine ETF invests in innovative healthcare companies, focusing on sectors like robotic surgery, genomics, and advanced diagnostics, aiming to disrupt traditional medical practices. The ETF employs a bottom-up stock picking approach, benchmarking against the MSCI ACWI Index and MSCI All Country World Healthcare Equal Weighted Index. Based on the results so far, this strategy has been a dud, earning this ETF another Strong Sell rating for this series of ETFs.

Could now be the time to invest in biotech? The space, which performed well in 2020 and 2021, dropped off in the interim amid high interest rates and slowing deal-making.

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.

Could healthcare innovation be one potent opportunity area to start 2024? Healthcare investing wasn't necessarily the best in 2023.