FENI: A Well-Rounded Developed Markets ETF

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3dmitry/iStock via Getty Images FENI Strategy Fidelity Enhanced International ETF (NYSEARCA:FENI) is an actively managed ETF launched on 12/1/2007. It has 295 holdings, a 30-day SEC yield of 2.68%, a ...

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It has 295 holdings, a 30-day SEC yield of 2.68%, a ...</p>\n\n<a href=\"https://seekingalpha.com/article/4703728-feni-a-well-rounded-developed-markets-etf\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TLTD","symbol_name":"Flexshares Morningstar Developed","start_time":0,"source_url":"https://seekingalpha.com/article/4703728-feni-a-well-rounded-developed-markets-etf","article_id":"2450340185","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1157769884/image_1157769884.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2450340185","pubTimestamp":1720793655,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"3dmitry/iStock via Getty Images FENI Strategy Fidelity Enhanced International ETF (NYSEARCA:FENI) is an actively managed ETF launched on 12/1/2007. It has 295 holdings, a 30-day SEC yield of 2.68%, a ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TLTD":"Flexshares Morningstar Developed","BK4585":"ETF&股票定投概念","BK4147":"半导体设备","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","ASML":"阿斯麦","EFA":"欧澳远东指数 ETF-iShares MSCI","FENI":"FIDELITY ENHANCED INTERNATIONAL ETF","BK4588":"碎股","BK4550":"红杉资本持仓","03165":"华夏欧优股对冲","LU1734074674.USD":"NINETY ONE GSF ASIA PACIFIC FRANCHISE \"A\"(USD) ACC","EFAV":"iShares MSCI EAFE Min Vol Factor ETF","LU2063271972.USD":"富兰克林创新领域基金","BK4504":"桥水持仓","BK4581":"高盛持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","FYLD":"Cambria Foreign Shareholder Yield ETF","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","FDN":"First Trust Dow Jones Internet I"},"translate_title":"FENI：全面发展的发达市场ETF","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EFAV":1,"TLTD":1,"FYLD":1,"FENI":1,"FDN":1,"EFA":1,"ASML":0.9,"03165":0.6},"content_text":"3dmitry/iStock via Getty Images FENI Strategy Fidelity Enhanced International ETF (NYSEARCA:FENI) is an actively managed ETF launched on 12/1/2007. It has 295 holdings, a 30-day SEC yield of 2.68%, a 12-month trailing yield of 4.42%, and a total expense ratio of 0.28%. Dividends are paid quarterly. As described in the prospectus by Fidelity, the fund invests in constituents of the MSCI EAFE Index, which covers developed markets excluding the U.S. and Canada. The strategy is based on: \"quantitative analysis of historical valuation, growth, profitability, and other factors to select a broadly diversified group of stocks that may have the potential to provide a higher total return than that of the MSCI EAFE Index.\" The portfolio turnover rate was 105% in the most recent fiscal year. This article will use as a benchmark the parent index, represented by iShares MSCI EAFE ETF (EFA). Portfolio About 90% of asset value is invested in large and mega-cap companies. The heaviest country in the portfolio is Japan (23.2%), followed by the U.K. (14%). Other countries are below 11%. The next chart lists the top 10 countries in the portfolio, representing 88.5% of asset value. The geographical allocation of FENI is similar to the benchmark. FENI geographical allocation (chart: author; data: Fidelity, iShares) The heaviest sectors are financials and industrials, almost tied with 18.9% and 18.6% of assets. Then, come healthcare (13.9%) and technology (11.1%). Other sectors are below 10%. The sector breakdown is also close to the parent index. FENI sector breakdown (chart: author; data: Fidelity, iShares) The top 10 holdings, listed in the next table, represent 15.7% of asset value. The largest position weighs 2.94%, so risks related to individual companies are low, and the portfolio is well-diversified.   Name Ticker Weight%   Novo Nordisk A/S Class B NOVO B 2.94   ASML Holding N.V. ASML 1.84   Shell plc SHEL 1.74   Novartis AG Registered Shares NOVN 1.7   Roche Holding AG ROG 1.48   TotalEnergies SE TTE 1.32   Schneider Electric S.E. SU 1.21   Hitachi, Ltd. 6501 1.16   ASML Holding N.V. ADR ASML 1.15   Nestle S.A. NESN 1.11   Click to enlarge FENI is marginally cheaper than EFA regarding valuation ratios, and it has similar aggregate earnings growth and sales growth rates. Cash flow growth is slightly better, though.     FENI EFA   Price/Earnings 15.24 16.48   Price/Book 1.71 1.88   Price/Sales 1.36 1.54   Price/Cash Flow 8.92 10.41   Earnings Growth 21.38% 21.70%   Sales Growth 8.97% 8.49%   Cash Flow Growth 8.09% 5.32%   Click to enlarge Source: Fidelity Performance Since December 2013, the Fidelity fund has outperformed EFA by over 10% (+70.5% vs +59.7%), meeting its objective of beating its parent index. The gap in annualized return is not really impressive, though (about 1%). FENI vs EFA since December 2013 (Chart: author, data: Fidelity) The next table compares characteristics of FENI and three factor-based ex-US developed markets ETFs with at least 10 years of track record:  Cambria Foreign Shareholder Yield ETF (FYLD) FlexShares Morningstar Developed Markets ex-US Factor Tilt (TLTD) iShares MSCI Eafe Min Vol Factor ETF (EFAV)      FENI FYLD TLTD EFAV   Inception 12/20/2007 12/2/2013 9/25/2012 10/18/2011   Expense Ratio 0.28% 0.59% 0.39% 0.22%   AUM $1.63B $323.04M $493.79M $6.56B   Avg Daily Volume $3.48M $1.43M $1.45M $26.47M   Number of Holdings 295 106 2518 263   Assets in Top 10 15.70% 13.96% 8.31% 14.36%   Turnover 105.00% 44.00% 22.00% 25.00%   Click to enlarge FENI is the second-largest fund in this group behind EFAV, and it has the highest turnover. The next chart compares performances since December 2013. FENI is the best performer, shortly ahead of Cambria's ETF. Nonetheless, EFAV was leading during most of this period. FENI vs. competitors, since December 2013 (Seeking Alpha) FENI is clearly leading in 2024 to date: FENI vs. competitors, year-to-date (Seeking Alpha) Takeaway  Fidelity Enhanced International ETF is an actively managed ETF with a rules-based strategy in ex-US developed markets. It is well-diversified across holdings and sectors, but quite heavy in Japan. Over the last 10 years, it has met the objective of outperforming its parent index. It has also outperformed three factor-based ETFs in the same stock universe, making it quite attractive in its category.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2450340185"}