Fidelity Non-US Stocks: Investing in Developed Countries

Investing in international stocks can be a smart move for investors looking to diversify their portfolios. Among the many options available, Fidelity offers a range of non-US stock funds that focus on developed countries. This article delves into the details of these funds, highlighting their benefits and providing insights into how they can enhance your investment strategy.

Understanding Fidelity Non-US Stocks

Fidelity's non-US stock funds are designed to invest in companies from developed countries around the world. These countries are typically characterized by stable political systems, strong economies, and well-established markets. Some of the key developed countries included in these funds are Canada, the United Kingdom, Germany, Japan, and Australia.

Benefits of Investing in Developed Countries

Investing in developed countries offers several advantages:

• Stable Economies: Developed countries tend to have more stable economies compared to emerging markets. This stability can lead to more predictable returns and lower volatility.
• Diversification: Investing in non-US stocks allows you to diversify your portfolio and reduce exposure to the US market. This can help mitigate the impact of market downturns in any one country.
• Strong Companies: Developed countries are home to many of the world's largest and most successful companies. Investing in these companies can provide access to high-quality assets with strong growth potential.
• Currency Exposure: Investing in non-US stocks can provide exposure to different currencies, which can be beneficial if you believe that certain currencies will strengthen against the US dollar.

Fidelity's Non-US Stock Funds

Fidelity offers a variety of non-US stock funds, each with its own focus and investment strategy. Some of the most popular funds include:

• Fidelity International Discovery Fund: This fund invests in small and mid-cap companies from developed countries, targeting companies with strong growth potential.
• Fidelity Global Equity Income Fund: This fund focuses on companies from developed countries with high dividend yields, providing investors with a steady stream of income.
• Fidelity Global Select Fund: This fund invests in a diversified portfolio of companies from developed countries, targeting long-term growth.

Case Study: Fidelity International Discovery Fund

Let's take a closer look at the Fidelity International Discovery Fund as a case study. This fund invests in small and mid-cap companies from developed countries, targeting companies with strong growth potential. Some of the key holdings in this fund include:

• ASML Holding NV: A Dutch company that designs, develops, and sells semiconductor equipment.
• NVIDIA Corporation: An American company that designs graphics processing units (GPUs) for use in personal computers, servers, and mobile devices.
• TSMC: A Taiwanese company that designs and manufactures integrated circuits (ICs).

These companies represent the type of high-quality assets that investors can expect to find in the Fidelity International Discovery Fund. By investing in these companies, investors gain exposure to some of the fastest-growing sectors in the global economy.

Conclusion

Investing in Fidelity's non-US stock funds can be a valuable addition to your investment strategy. These funds offer exposure to stable economies, strong companies, and diverse currencies, all of which can help enhance the performance of your portfolio. Whether you're looking for long-term growth or income, Fidelity's non-US stock funds provide a range of options to meet your investment goals.