The Fidelity Disruptive Medicine ETF (FMED) has seen a significant surge in performance over the last month, with a return of 20.4%. This active healthcare tech ETF focuses on industry disruptors and has quietly outpaced its overall year-to-date numbers.
The fund’s June performance is particularly notable, as it coincides with FMED hitting its key three-year ETF milestone. This milestone is traditionally important for ETFs, and it may be helping to boost the fund’s visibility among investors.
According to ETF Database data, FMED‘s performance spike outpaces its category average. The fund charges a 50 basis point fee to actively invest in disruptive healthcare stocks. Its managers seek out firms that meet both growth and value standards, with a focus on innovators in genomics, immunotherapy, robotic surgery, and advanced diagnostics.
The strategy returned 20.4% over the last month, comfortably beating the ETF Database health and biotech equities category average. This rally marks a significant turnaround for FMED, which previously trailed its peers with a year-to-date return compared to the category’s average.
Investors may expect the fund to continue its momentum in the second half of the year. The interest rate outlook will likely play a significant role in determining FMED‘s performance. A rate hike could slow rising healthcare stocks, while a rate cut would provide a clear tailwind. Even if rates remain steady, drivers like AI could continue to boost healthcare tech.
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For investors considering FMED, it’s essential to understand the fund’s focus on long-term capital appreciation. By applying rigorous fundamental analysis, FMED identifies the strongest contenders in disruptive healthcare technologies. As the fund continues to build on its momentum, it may represent an intriguing thematic offering for investors to consider.
The fact that many brokerages require a three-year track record before offering a fund may have previously limited FMED‘s visibility. Now that it has hit its three-year milestone, the fund can tout strong performance data to attract more investors.
With its strong performance in June and its focus on disruptive healthcare technologies, FMED is an interesting option for investors. The fund’s ability to identify innovators in fields like genomics and immunotherapy may provide a unique opportunity for growth. As investors consider FMED for their portfolios, they should keep in mind the potential impact of interest rates and the ongoing development of healthcare technologies.
For more news, information, and strategy, visit the ETF Investing Content Hub. Fidelity Investments® is an independent company unaffiliated with VettaFi LLC (“VettaFi”). These articles do not form any kind of legal partnership, agency affiliation, or similar relationship between VettaFi and Fidelity Investments, nor is such a relationship created or implied by the articles herein. VettaFi LLC is the author and owner of these articles.
