Fidelity Disruptors ETF: Example Why I Avoid Fund-Of-Funds

2025-06-02 09:30:00 ET

Summary

• FDIF offers exposure to all five Fidelity Disruptive ETFs, making it suitable for investors who don't want to pick individual winners.
• The fund has underperformed broad market benchmarks and most underlying ETFs, raising concerns about its effectiveness as a core holding.
• FDIF only makes sense for those seeking convenience, as it doesn't deliver superior returns or risk-adjusted performance compared to broad index funds.
• Given its lackluster performance and inconsistent payouts, I rate FDIF a Hold, with a Sell rating also worth considering.

Introduction

Now that all the ETFs held by the Fidelity Disruptors ETF ( FDIF ) have been reviewed, it was time to cover this fund-of-funds [FOF] to answer the question: “Is FDIF a good way to play the five ETFs in the Fidelity Disruptive series. Before rending my verdict, FDIF is reviewed and its performance compared to its holdings and then two broad-market ETFs. ...

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