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This Overlooked Market Segment Can Surprise Investors in 2026
Etftrends· 2025-10-27 17:42
Core Insights - 2025 presents various challenges for investors, including tariff uncertainty and potential stagflation, leading to a mixed performance across market segments [1] - A shift in investment strategy towards mid-cap stocks may be beneficial, as they combine strengths of both small-cap and large-cap firms while mitigating weaknesses [2][3] Mid-Cap Market Analysis - Mid-cap companies span various industries and can capitalize on market opportunities, potentially offering better revenue prospects than small-caps at more attractive valuations than large-caps [3] - The Fidelity Enhanced Mid Cap ETF (FMDE) is highlighted as a viable investment option, charging a fee of 23 basis points and utilizing quantitative analysis for active investment in U.S. mid-cap stocks [4] Performance Metrics - FMDE has achieved an 8.5% year-to-date return, outperforming both its ETF Database Category and FactSet Segment averages, and has attracted over a billion in net inflows in the past year [5] - The fund's strategy includes evaluating historical valuation, growth, and profitability, along with income generation through securities lending, positioning it well for uncertain market conditions in 2026 [5][6]
Disruptive Investing Helps Communications ETF FDCF Consistently Outperform
Etftrends· 2025-10-13 17:34
Core Insights - Fidelity Investments offers a suite of strategies focused on disruptive investing, with the Fidelity Disruptive Communications ETF (FDCF) outperforming averages in 2023, indicating strong momentum as it approaches 2026 [1][4] Investment Strategy - FDCF charges a 50 basis point fee and invests in companies with disruptive capabilities in the communications sector, utilizing proprietary techniques and fundamental analysis to identify potential investments [1][2] - The ETF includes both industry leaders like Meta Platforms, Inc. (META) and rising innovators such as Arista Networks (ANET), which provides essential hardware infrastructure for data centers [2][3] Performance Metrics - The fund has achieved a year-to-date return of 31.23% and 11.5% over the last three months, outperforming the SPDR S&P 500 ETF Trust (SPY) during these periods [3] - Since its launch in 2023, FDCF has consistently outperformed key market ETFs, showcasing its effective investment strategy [3][4] Future Considerations - The ETF's focus on firms driving innovation in communications, combined with its flexibility to invest both domestically and internationally, makes it a compelling option for investors looking into 2026 [4]