It is a passive ETF that tracks an index of high-dividend stocks from developed markets outside the US. It selects overseas developed-market companies with high dividend yields that appear likely to keep paying dividends steadily, pursuing distribution income and international diversification together.

It suits income-oriented investors who want to invest in high-dividend developed-market stocks abroad and pursue distribution income and regional diversification at the same time.

It is an ETF managed by Fidelity using a passive (index-tracking) approach.

The fund tracks an index that holds developed-market companies outside the US with high dividend yields and an apparent ability to keep paying dividends steadily. Combining market-cap weighting with dividend considerations, it spreads exposure across overseas developed-market high-dividend stocks, and its structure pursues distribution income and international diversification together.

• Selection of high-dividend stocks in overseas developed markets
• Distribution income combined with regional diversification

Assets under management (AUM) are $395.8M, and the expense ratio is 0.18% per year.

The main point of comparison is its concentrated focus on overseas high-dividend stocks, versus a plain international developed-market ETF or a US high-dividend ETF.

Overseas developed-market high-dividend stocks are driven by global risk appetite, exchange rates, and each country's economy and interest rates. They tend to be strong when rates are falling and dividend appeal comes to the fore, and relatively weak when investors favor growth stocks. Because of the overseas weighting, currency movements also come into play.

Fund flows into overseas high-dividend stocks split depending on dividend demand, exchange-rate trends and each country's interest rates, and money sometimes moves into related products when interest in overseas income investing rises. It is also worth watching how performance varies with each country's economy and currency factors.

Its strengths are overseas high-dividend exposure and regional diversification, while currency effects, relative weakness against growth stocks, and dividend variability are points to consider.

For developed-market exposure without a high-dividend screen, a direct substitute is EFA, and for another form of overseas high-dividend exposure, a product such as IDV is also worth comparing. Those who want emerging-market high dividends can also consider a product such as DEM. The three products shown in the table, VYMI, DFAI and VIGI, follow overseas high-dividend, core and dividend-growth strategies respectively, and they differ in selection method and dividend orientation. What sets this ETF apart is its narrower exposure to high-dividend stocks in overseas developed markets.

Here are the points to check before investing in FIDI. Overseas high-dividend exposure and regional diversification are its appeal, but currency effects, relative weakness against growth stocks, and dividend variability need to be confirmed in advance. It is also a good idea to compare it with plain international developed-market and US high-dividend products.

Currency fluctuations, relative weakness when growth stocks are in favor, and dividend variability are the main drivers of long-term performance, and because of the large overseas weighting, exchange rates also affect results. Losses can occur during periods of broad weakness in overseas stocks.

It is a suitable candidate for income-oriented investors who want to invest in high-dividend developed-market stocks abroad and pursue distribution income and regional diversification together. To invest overseas without a high-dividend screen, consider a product such as EFA, and if you want overseas high-dividend exposure, it is advisable to compare this product alongside it before choosing.