As International Equities Flows Set Records, Lean on Fundamentals

Core Insights - International equities experienced record inflows of $60 billion in January, driven by investors seeking opportunities outside the U.S. due to domestic uncertainties [1] - A focus on fundamentals is suggested as a strategy to differentiate investment approaches in international equities for 2026 [1][3] Investment Trends - Investors are increasingly looking for advanced investment strategies rather than passive, market cap-weighted exposure to non-U.S. equities, especially in light of U.S. and geopolitical risks [2] - The Fidelity Fundamental Developed International ETF (FFDI) exemplifies an active approach to investing in developed market equities outside the U.S., charging a fee of 55 basis points [4] Performance Metrics - FFDI has achieved a return of 12.3% over the last three months and 25% over the past year, indicating strong performance and momentum as its price is above the 50- and 200-day simple moving averages [5] - The fund's performance has generated a buy signal according to YCharts, suggesting potential for outperformance compared to passive international equity offerings [5][6]