The FDFF ETF is an actively managed ETF that seeks long-term capital growth by selecting companies that could change how financial products and services are delivered. It reviews potential investments with a focus on how innovative business models, the use of technology, and changes in customer experience may affect the financial industry.

It suits long-term investors who are interested in the growth potential of the financial innovation theme and who can tolerate the volatility of business models that differ from traditional financial firms.

This is an ETF run by Fidelity using an active management approach.

This fund focuses on companies that conduct business in new or nontraditional ways within the financial sector. Because the management team selects holdings by examining the drivers of change that affect the efficiency and personalization of financial services, its composition and performance characteristics can vary widely depending on market conditions.

• Selective management focused on the financial innovation theme
• A structure that does not mechanically replicate a specific index

Assets under management (AUM) are $45.1M, and the total expense ratio (Expense Ratio) is 0.50% per year.

In a structure that selects individual stocks, the manager's judgment and changes in holdings have a large effect on results. Before trading, you should check the fee burden, trading conditions, and the concentration of the holdings together.

Performance trends are influenced by the pace of financial technology adoption and the market's valuation of innovative companies. When growth expectations rise, the theme exposure can stand out, but when interest rates and risk appetite shift, the fund may show volatility that moves differently from traditional financial stocks.

Fund flows into thematic ETFs can move along with expectations for digital payments, financial automation, and changes in the regulatory environment. When the market is uncertain, selective exposure to a small number of industries and business models can amplify swings in inflows and outflows, so it is necessary to take an approach with a clear purpose for holding the fund.

Selective exposure to the financial innovation theme is its strength, but the non-diversified structure and the volatility that comes with theme concentration are factors to watch.

The FWD ETF shown in the table can be compared in that it selects innovative companies, while the FEOE ETF takes an approach centered on overseas stocks. The INFL ETF focuses on the potential to benefit from the inflation environment, the MGNR ETF covers exposure to natural resources, and the GEME ETF covers exposure to emerging market stocks. These ETFs differ from one another in fee burden, assets under management, and regional and industry exposure, so when comparing them with the FDFF ETF, you should also examine differences in concentration on the financial innovation theme and in management approach. Information on directly comparable products outside the candidates provided is limited, so no separate alternatives were included.

Before investing, you should first check whether the financial innovation theme fits your asset allocation goals. Unlike products that broadly hold the overall market, this fund's results can be affected by selective management and judgments about industry change, so it is necessary to review costs and concentration risk together.

In a non-diversified structure, the effects of an individual company's earnings, financial regulation, and the pace of technology adoption can be large. In addition, during periods when interest rates and economic expectations change, prices of financial innovation companies that have priced in growth expectations may swing more widely. Geopolitical variables and exchange rate movements can also affect the valuation of companies with overseas business exposure.

The Fidelity Disruptive Finance ETF is an active thematic product for investors who want selective participation in changes in financial services. If you are considering a long-term holding, do not look only at whether it pays quarterly distributions. Weigh the fee burden, the non-diversified structure, and the volatility of the financial innovation theme together within your own investment horizon and asset allocation.