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Global Dividends in Focus: Navigating Volatility With Fidelity’s FIDI

International exposure continues to pique investor interest as market volatility ensues. That said, the Fidelity International High Dividend ETF (FIDI B-) is designed to provide investors with a strategic core for international equities — specifically, dividend-paying companies in developed markets. FIDI’s emphasis on sustainable dividends is pertinent in today’s market environment as global uncertainty persists. Furthermore, with domestic valuations potentially stretched, FIDI offers a disciplined, rules-based approach to capturing yield as well as international growth. See more: Meld International Exposure & Income With This Dividend ETFSustainable Dividends & DiversificationIn times of rising yields, it can be tempting to simply select the highest option. FIDI avoids these dividend traps by using a sophisticated multi-factor screen inherent in the Fidelity International High Dividend Index it tracks. In short, the screening methodology looks for companies with the following attributes: High dividends: firms with strong distributions relative to their share price. Dividend sustainability: companies with healthy payout ratios to ensure continued dividend payments to shareholders. Dividend growth: firms that have demonstrated a commitment to increasing their dividends. The fund’s focus on developed international markets (primarily Europe and the Asia-Pacific region) ensures exposure to global industry leaders. Certain international markets may have a differing view on dividends compared to the U.S. For instance, certain companies may prioritize returning capital to shareholders, whereas the U.S. may see a higher emphasis on tech-heavy growth. Either way, this regional diversification eliminates any home bias, which can help provide a cushion against U.S.-specific economic or policy shifts. See more: International ETFs: Diversifier for Outsized U.S. Growth ExposuresEnhanced Income PotentialIn the current macro environment, a higher-for-longer narrative is giving investors optionality when it comes to capital appreciation and income. FIDI targets dividend-paying companies, making it a powerful income generator with the potential for capital appreciation within a broader portfolio. Additionally, FIDI may complement a portfolio that’s heavy with U.S. equity concentration by adding high-conviction international exposure. It’s a tool designed for the modern investor who seeks dividend income and long-term capital appreciation without the volatility that may come with unscreened international benchmarks. 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. 1259695.1.0

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