Fidelity’s FMED Tops Peers After Three-Year Milestone

Fidelity’s Disruptive Medicine ETF (FMED) reached its three-year milestone in June and posted a 20.4% gain for the month, compared with a 13% average for health and biotech ETFs. The actively managed fund targets companies developing technologies in genomics, immunotherapy, robotic surgery and advanced diagnostics.

The three-year track record is often used by brokerages as a listing threshold; reaching it gives FMED additional performance history to present to platforms and investors. The June gain followed a period in which the fund had lagged its peers year-to-date.

Before June, FMED had a year-to-date return of 9.3%, below the category average of 14.1%. The fund charges an expense ratio of 0.50% and seeks long-term capital appreciation by investing in companies its managers judge to meet growth and value criteria. Managers use fundamental analysis to select firms they view as leaders in the fund’s target areas.

Future returns will be affected by broader market conditions. Changes in interest rates can influence higher-growth healthcare equities, while technological developments such as wider use of artificial intelligence in drug discovery and diagnostics may affect names in the portfolio.

Reaching the three-year mark may improve the fund’s visibility among brokerages that require longer records before listing new ETFs. Managers and investors will monitor macroeconomic developments and sector-specific events as the fund moves through the second half of the year.