Key Takeaways Value firms may offer more durability and returns over time in a volatile near- to medium-term outlook.
Don't look now, but markets may be poised for a value rotation. Each year, market uncertainty sees headlines and narratives about a potential value rotation grow.
Fidelity International Value Factor ETF offers diversified exposure to large-cap value stocks in developed international markets. FIVA has outperformed the EFA benchmark since inception and delivered strong recent returns, but lags some peers like DFIV and EFV over the past four years. Despite recent outperformance, it remains premature to declare a sustained comeback for the value factor.
International developed market stocks are outpacing U.S. stocks in 2025, a rare occurrence since 2014. Fidelity International Value Factor ETF is outperforming SPDR® S&P 500® ETF this year. FIVA invests in global ex-U.S. value stocks across diversified sectors and market capitalizations. The analysis aims to determine why FIVA is beating SPY by reviewing holdings, distributions, and portfolio strategy. Since both factor I see that are benefiting FIVA over SPY could end at any time, I gave the ETF a Hold rating.
Have tariffs on the mind? U.S. investors facing market turbulence may be inclined to look for diversification abroad.