Fidelity Disruptive Medicine ETF

Fidelity Disruptive Medicine ETF (FMED) is an actively managed fund. Fidelity picks about 72 health care companies it believes are changing medicine, in areas from genomics and gene therapy to robotic surgery. Its 0.50% expense ratio is below the 0.65% average for similar funds, though XBI (0.35%) and IBB (0.45%) cost less. It is a small fund, with about $51.5 million in assets as of August 31, 2026.

• Over the year to Oct 27, 2026, FMED returned +21.5%, 6th of 8 among similar funds.
• Its worst full calendar year was 2024 (+2.3%); its best was 2025 (+9.7%).
• The deepest fall in its price history was 21.8% (Jul 21, 2023 to Oct 30, 2023), recovered by Feb 27, 2024.

As of Aug 31, 2026, the fund held 72 securities; the ten largest made up 33.25% of assets. It also reported 4.69% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Aug 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +13.25%, -2.03%, +13.37%.

Fidelity Disruptive Medicine ETF does not track an index. It is actively managed: Fidelity's team picks the stocks. Normally, at least 80% of assets go to what Fidelity calls "disruptive medicine" companies, meaning businesses with new ways of developing, making or delivering medical products and services that could displace established rivals. Examples include robotic surgery, cell and gene therapy, genomics, immunotherapy, precision medicine and advanced diagnostics. The fund may own companies in any sector but concentrates in health care.

A company qualifies if it meets at least one of Fidelity's tests, such as being early to market with a high-impact product, holding patents on innovative products, or having a business model that challenges older competitors. Managers study each company's finances and industry position (fundamental analysis) and use computer models to help build the portfolio.

The prospectus describes no fixed rebalancing schedule; managers trade as their views change. Turnover was 49%, meaning the fund traded roughly half its portfolio's value in a year. As of August 31, 2026, the fund had 72 holdings, about 81% in US companies and 33% in the top 10. The largest were 10x Genomics (5.2%), Thermo Fisher Scientific (3.8%) and Danaher (3.7%). It may use derivatives (contracts tied to other assets' prices) but held none then.

• FMED charges 0.5% a year, versus an average of 0.65% for the similar funds below (3rd of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).

FMED is a concentrated, actively picked bet on medical innovation stocks with no income, so it fits as a small add-on rather than a foundation.

FMED could add targeted exposure to medical innovation next to a broad core of stocks and bonds. But the ETF's own track record is short. It launched on June 12, 2023, so it missed the 2008, 2020 and 2022 market declines. Its deepest drop was 21.8%, from July 21 to October 30, 2023. It took about 3.9 months to recover, getting back by February 27, 2024. Fidelity's prospectus also shows a 21.71% loss for 2022, a year before the ETF's launch date. Anyone who had to sell in a slump like that would lock in the loss. FMED paid no distributions in the year through October 27, 2026, so it provides no income. It costs 0.50% a year. In the SEC's standard example, that comes to $51 in the first year on a $10,000 investment. 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.