What does it mean to invest in disruption? Fidelity Investments offers a suite of strategies that embrace disruptive investing, and for the Fidelity Disruptive Communications ETF (FDCF), that has helped the fund outperform its averages so far this year. With strong momentum, then, the fund may be an option entering 2026. So how has it set itself apart?
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FDCF charges a 50 basis point fee for its active approach. The strategy invests in firms offering disruptive capabilities in the communications sector. Its investors identify potential inclusions using techniques proprietary to Fidelity Investments, as well as fundamental analysis.
Its managers seek companies that can reshape the sector while also meeting certain fundamental standards. The communications ETF combines investment in some key industry leaders, as well as rising innovators. Meta Platforms, Inc. (META), of course is a sector leader, but also a key innovator, itself. Other important but lesser-known names like Arista Networks (ANET) also find a place in the ETF’s holdings.
ANET provides key hardware infrastructure for data centers, including cloud computing, high-performance computing, and high-frequency trading. That has helped the fund return 31.23% YTD and 11.5% over the last three months, according to YCharts. The fund has outperformed the SPDR S&P 500 ETF Trust (SPY) over both those time frames, according to that data. Notably, the fund has outperformed the key market ETF since its 2023 launch, as well.
By emphasizing firms that are driving the narrative in communications, the disruptive communications ETF has already stood out with its performance. What’s more, with its flexibility to invest at home and abroad with an active view, it could be worth considering into 2026. As one of Fidelity Investments’ variety of disruptive funds, FDCF could appeal.
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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.
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