Fidelity's international high dividend ETF gains 29% in a year, boosted by a stronger euro and pound.

The Fidelity International High Dividend ETF (FIDI) has returned 29% over the past year, driven largely by currency gains from a stronger euro and pound converting overseas dividends into more dollars. The fund, with a low 0.19% expense ratio, is exposed to currency risk as it does not hedge, meaning fluctuations in the USD/EUR exchange rate significantly impact returns. Key portfolio risks include concentration in regulated European utilities and global tobacco companies, whose dividends face political and regulatory scrutiny. Investors should watch currency movements and regulatory decisions closely, as a drop in the euro below $1.13 or dividend cuts from major holdings could reduce future returns.