Home > Category > Foreign-Small & Mid > FISMX – Fidelity International SmallCap

FISMX

Fidelity International SmallCap

Category:

Foreign-Small & Mid

Benchmark:

MSCI ACWI xUS DivAdj Idx (A-XUS)

AUM:

4,818.080

TTM Yield:

1.81%

Expense Ratio:

1.01

Exploring Global Opportunities with Small-Cap Focus

Fidelity International SmallCap (FISMX) stands out in the mutual fund landscape with its strategic focus on small-cap companies outside the United States. This fund is designed for investors seeking capital appreciation through exposure to international markets, particularly in emerging economies. By investing at least 80% of its assets in small-cap securities, FISMX offers a unique opportunity to tap into the growth potential of smaller companies that are often overlooked by larger funds. Managed by Fidelity Investments, a firm renowned for its expertise and robust research capabilities, this fund leverages a diversified approach across various sectors and regions. Its emphasis on non-U.S. securities allows investors to diversify their portfolios beyond domestic markets, potentially enhancing returns while spreading risk. The fund’s commitment to small-cap stocks in emerging markets positions it as a compelling choice for those looking to capitalize on global economic trends and the dynamic growth of smaller enterprises.

At A Glance

Executive Summary

Fidelity International SmallCap (FISMX) offers exposure to small-cap international stocks, focusing on growth in emerging markets. It has a 1.01% expense ratio and a 1.81% yield.

– Exposure to international small-cap stocks – Potential for capital appreciation in emerging markets – Managed by Fidelity, a reputable investment firm – Diversified sector allocation

– Higher expense ratio compared to some peers – Negative alpha and Sharpe ratio indicate underperformance – High downside risk and max drawdown

Navigating Performance in a Global Context

Fidelity International SmallCap (FISMX) has demonstrated varied performance across different time frames, reflecting the inherent volatility and potential of international small-cap investments. Over the past year, the fund achieved a notable return of 16.44%, showcasing its ability to capture growth in a recovering global economy. However, its 10-year annualized return of 7.28% suggests a more moderate long-term performance, indicating periods of both strong gains and challenges. When compared to its benchmark, the MSCI ACWI xUS DivAdj Index, which posted a 1-year return of 20.56%, FISMX slightly underperformed, highlighting the competitive nature of international markets. The fund’s performance is influenced by its strategic allocation to small-cap stocks, which can experience significant price swings. Despite this, FISMX’s focus on emerging markets and diverse sector exposure provides opportunities for capturing upside potential during favorable economic conditions, making it a viable option for investors seeking international diversification.

Balancing Risk and Reward in Emerging Markets

Fidelity International SmallCap (FISMX) presents a distinctive risk profile, characterized by its focus on small-cap international stocks. The fund’s beta of 0.92 indicates a slightly lower volatility compared to the broader market, yet its negative alpha of -4.14% and Sharpe ratio of -0.36 suggest challenges in delivering risk-adjusted returns. These metrics highlight the fund’s struggle to outperform its benchmark, reflecting the complexities of investing in smaller, less liquid markets. The fund’s standard deviation of 3.28% and downside risk of 2.32% further underscore the potential for volatility, particularly in emerging markets where economic and political factors can impact performance. Despite these risks, FISMX’s diversified sector allocation and focus on growth-oriented small-cap stocks offer the potential for significant returns, especially during periods of global economic expansion. Investors considering this fund should be prepared for fluctuations in value and possess a higher risk tolerance, aligning with the fund’s strategy of seeking capital appreciation through international diversification.

Strategic Allocation Across Diverse Sectors

Fidelity International SmallCap (FISMX) employs a strategic allocation approach, investing across a wide range of sectors to capture growth opportunities in international markets. The fund’s largest sector allocation is in Industrials, comprising 18.91% of its portfolio, followed by Financials at 14.94% and Cyclical stocks at 14.01%. This diversified sector exposure allows the fund to mitigate risks associated with any single industry while capitalizing on growth trends across different economic segments. Notably, the fund’s allocation to Technology (10.64%) and Defense (12.52%) sectors reflects its focus on innovative and resilient industries that can drive long-term growth. The inclusion of top holdings such as Rheinmetall AG and Ashtead Technology Holdings PLC further emphasizes the fund’s commitment to investing in companies with strong growth potential. By maintaining a balanced portfolio across various sectors, FISMX aims to achieve capital appreciation while managing risks associated with international small-cap investments.

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

Yield Potential in a Global Landscape

Fidelity International SmallCap (FISMX) offers a yield of 1.81%, positioning it as a competitive option for investors seeking income alongside capital appreciation. This yield is relatively attractive compared to similar funds in the Foreign-Small & Mid category, providing a steady income stream while maintaining exposure to growth-oriented small-cap stocks. The fund’s income strategy is supported by its diversified sector allocation, which includes dividend-paying industries such as Financials and Utilities. For income-focused investors, FISMX presents an opportunity to benefit from both yield and potential capital gains, particularly in a low-interest-rate environment where traditional income sources may offer limited returns. Additionally, the fund’s focus on international markets provides exposure to global economic trends, enhancing its appeal to investors looking for diversified income opportunities. While the yield may not be the primary driver for growth-focused investors, it adds an attractive dimension to the fund’s overall investment strategy.

Understanding Costs and Their Impact on Returns

Fidelity International SmallCap (FISMX) has an expense ratio of 1.01%, which is slightly higher than some of its peers in the Foreign-Small & Mid category. This expense ratio reflects the costs associated with managing a diversified portfolio of international small-cap stocks, including research, trading, and administrative expenses. While higher expenses can impact net returns, the fund’s strategic focus on emerging markets and small-cap companies offers potential for significant capital appreciation, which may offset these costs over time. Investors should consider the expense ratio in the context of the fund’s overall performance and risk profile, as well as their own investment objectives. For those seeking exposure to international small-cap stocks and willing to accept higher costs for potential growth, FISMX remains a viable option. However, cost-conscious investors may want to compare the fund’s expenses with similar offerings to ensure alignment with their financial goals.

Positioning Within the Competitive Landscape

Fidelity International SmallCap (FISMX) distinguishes itself from similar funds through its strategic focus on small-cap international stocks, particularly in emerging markets. Compared to peers like BNY Mellon Worldwide Growth-A (PGROX) and Columbia International Dividend Inc-Inst (CSVFX), FISMX offers a unique blend of growth potential and diversification. While its expense ratio of 1.01% is higher than some competitors, the fund’s emphasis on small-cap stocks provides opportunities for capturing significant upside during favorable market conditions. In terms of returns, FISMX’s 1-year performance of 16.44% is competitive, though slightly below the benchmark and some peers. However, its diversified sector allocation and focus on emerging markets set it apart as a compelling choice for investors seeking international exposure. By balancing risk and reward, FISMX fits well within the competitive landscape, appealing to those looking for growth opportunities beyond domestic markets.

Future Outlook

Fidelity International SmallCap (FISMX) may benefit from global economic recovery and growth in emerging markets. Its focus on small-cap stocks offers potential for high returns, but investors should be prepared for volatility. Ideal for those seeking international diversification and willing to accept higher risk.

Aligning with Investor Goals and Risk Tolerance

Fidelity International SmallCap (FISMX) is well-suited for investors seeking international diversification and exposure to small-cap stocks with growth potential. Its focus on non-U.S. securities, particularly in emerging markets, offers opportunities for capital appreciation, making it an attractive option for growth-oriented investors with a higher risk tolerance. The fund’s diversified sector allocation and strategic emphasis on small-cap companies align with the goals of those looking to capitalize on global economic trends and the dynamic growth of smaller enterprises. Ideal investors for FISMX are those willing to accept the inherent volatility of international markets in exchange for the potential for significant returns. Long-term investors who prioritize growth and are comfortable with fluctuations in value will find this fund appealing. Additionally, FISMX’s yield of 1.81% provides an added dimension for income-focused investors seeking diversified income opportunities in a global context.

Current Market Context and Strategic Implications

The current market environment presents both challenges and opportunities for Fidelity International SmallCap (FISMX). With global economic recovery underway, emerging markets are poised for growth, offering potential upside for the fund’s small-cap focus. However, investors should be mindful of sector-specific conditions, such as the impact of rising interest rates on financials and real estate, which are significant components of the fund’s portfolio. Additionally, geopolitical tensions and currency fluctuations can influence performance, particularly in emerging markets. Tax implications for international investments should also be considered, as they can affect net returns. Despite these challenges, FISMX’s diversified sector allocation and strategic focus on growth-oriented small-cap stocks position it well to capitalize on global economic trends. Investors seeking international diversification and willing to navigate the complexities of global markets may find FISMX a compelling addition to their portfolios.

Similar Securities

Vanguard Intern'l Explorer -Inv – VINEX

Fidelity Series International SmallCap – FSTSX

Vanguard FTSE AllWrld xUS SmCp IxFd-Inst – VFSNX

Fidelity Adv Intern'l SmallCap Opportn-I – FOPIX

Fidelity International SmallCap – FISMX

Disclaimer: The information provided on this website is for informational purposes only and should not be construed as financial, investment, or other professional advice. PeepFinance does not endorse or recommend any specific securities, investments, or strategies. The opinions expressed are solely those of the authors and are not intended to be used as the basis for any investment decisions. All investments carry risks, and readers are encouraged to conduct their own research or consult with a financial professional before making any financial decisions. PeepFinance and its authors are not responsible for any losses or damages arising from the use of this information.