Fidelity’s FIDI ETF targets international dividend payers

Fidelity’s International High Dividend ETF (ticker: FIDI) targets dividend-paying companies in developed markets, with the largest weightings in Europe and the Asia-Pacific region. The fund uses a rules-based, multi-factor screen to select holdings.

FIDI tracks the Fidelity International High Dividend Index. The index selects companies using measures of dividend level, payout ratio and dividend growth. The methodology is designed to exclude firms whose high yields result from steep share-price declines or weak cash flows.

The screening process favors firms with above-average yields relative to peers, payout ratios that suggest payments can be maintained, and a record of increasing dividends. The selection applies only to stocks in developed markets and excludes emerging-market and smaller-cap securities.

Portfolio holdings tend to include established industry leaders across Europe and the Asia-Pacific region. The ETF’s stated primary objective is income generation through dividends; capital appreciation is a secondary outcome.

Risks linked to international dividend strategies include differences in dividend practices by country and sector, currency fluctuations, cross-border tax rules, and regional economic or political developments. Dividend payments are set by company boards and are not guaranteed.

The ETF structure provides intraday liquidity and follows transparent index rules. Fidelity lists the fund as part of its lineup of equity products aimed at income-oriented investors.