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How International ETF FENI Blends Quant & Active Approaches

BY | ETF Database
3:00 pm ET 10/15/26 | 5 VIEWS
With elevated U.S. stock valuations, rising interest rates, and overall market uncertainty, investors may want to consider diversifying abroad – one reason being to help mitigate concentration risk from the handful of names dominating the market. Of course, finding the right international ETF is the next and most important step. The Fidelity Enhanced International ETF (FENI A-) stands out as a strong candidate with its quant, active approach.Key Takeaways: U.S. concentration risk remains a notable issue, with the top 10 S&P 500 stocks providing more than one-third of index performance. U.S. stock valuations are high compared to ex-U.S. equities. International ETFs like FENI provide a useful route to these stocks through an actively managed, quantitative strategy. FENI charges a 28 basis point fee for its active approach. The international ETF uses computer-aided analysis to invest in a diversified portfolio of firms within developed non-U.S. markets. The fund looks to stocks within the MSCI EAFE Index as candidates, aiming to beat its benchmark. Using quantitative analysis, the active strategy assesses metrics such as growth, profitability, and historical valuation.FENI's ApproachThat strategy has helped the fund perform well over the last three- and one-year periods. FENI has outperformed its ETF Database Global Equities Category average in both of those time frames. According to ETF Database data. the fund returned 10.8% over the last 12 months and 14.95% over the last three years, as of October 8, 2026. See more: How Low-Duration Bond ETF FLDB Can Meet the Yield Curve Using its active approach, aided by multiple models that help guide investors, FENI offers a strong route into international equities. Diversifying outside of U.S. valuation and concentration risk, the strategy may make for a solid addition in the international ETF slot for many investors. For more news, information, and analysis, visit the ETF Investing Content Hub. Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles. 1285750.1.0

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