Fidelity Enhanced International ETF

Fidelity Enhanced International ETF (FENI) is an actively managed fund. It picks about 392 stocks from the MSCI EAFE Index, which covers developed markets outside the US and Canada, and aims to beat that index. Instead of copying the index, it uses a research-driven computer model. That approach costs 0.28% a year. Index funds such as VEA (0.03%) and IEFA (0.07%) charge much less.

• Over the year to Oct 27, 2026, FENI returned +14.3%, 3rd of 8 among similar funds.
• Its worst full calendar year was 2024 (+7.0%); its best was 2025 (+37.3%).
• The deepest fall in its price history was 14.2% (Mar 19, 2025 to Apr 8, 2025), recovered by May 2, 2025.

As of Jun 30, 2026, the fund held 392 securities; the ten largest made up 16.46% of assets, and 2.42% sat in cash and money-market holdings.

• Over the three months to Jun 30, 2026, investors added a net $1.40B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.19%, +3.04%, -0.06%.

FENI is not an index fund. It normally invests at least 80% of its assets in common stocks from the MSCI EAFE Index. That index covers developed-market stocks outside the US and Canada and weights each company by its total market value. Within that pool, Fidelity uses a quantitative process, meaning computer models built on research into long-term drivers of stock returns, such as valuation, growth and quality. A proprietary portfolio construction and risk-management framework then sets each stock's weight. The goal is a broadly diversified portfolio that may earn a higher total return than the index.

In practice, the fund looks broadly like its benchmark, with tilts toward stocks the model favors. As of June 30, 2026, it held 392 issuers, and its 10 largest positions made up 16.46% of assets. ASML (4.05%), Nestlé, Siemens, Tokyo Electron and Roche led the list. Japan (23.01%) and the United Kingdom (13.9%) were the largest country weights. Derivatives can count toward the 80% policy. The fund held one small MSCI EAFE futures contract and 2.42% in cash.

The prospectus does not give a fixed rebalancing schedule. Portfolio turnover was 98%, so in a year the fund trades close to the value of its whole portfolio. As with any ETF, its shares trade at market prices that can differ slightly from the value of its holdings.

• FENI charges 0.28% a year, versus an average of 0.09% for the similar funds below (7th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $29 in the first year and $356 over 10 years (assuming a 5% annual return).

With about 392 large developed-market companies outside the US and Canada and a beta of 0.99, it could serve as the main international stock holding, though at a higher fee than index-based options.

FENI could fill the international part of a portfolio, with Japan, Britain, Switzerland and continental Europe making up most of it. The ETF launched in November 2023, so it did not trade through the 2008, 2020 or 2022 sell-offs. The prospectus record from 2016 shows losses of 14.72% in 2018 and 13.98% in 2022, plus a 22.78% drop in the first quarter of 2020. As an ETF, its deepest drop was 14.2%, from March 19 to April 8, 2025. It recovered by May 2, 2025. Selling shares during a drop like that would lock in the losses.

It yielded 3.06% over the 12 months to October 27, 2026, paid quarterly. At 0.28% a year, it costs more than similar index funds. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.