Why Active Investing Works in International Equities

Fidelity research suggests active international allocations have topped index funds over time

Clients expect advisors to help them identify the right mix of investment vehicles and strategies relative to the risk they are willing to take. In some cases, this means taking advantage of low-cost index funds, and in others, it may involve active funds with the potential for index outperformance.

At Fidelity, we offer active and index mutual funds, exchange-traded funds, separately managed accounts, and pools in all major asset classes, and leave it to advisors to decide which is the best approach, based on client goals and preferences.

That said, advisors may want to consider active approaches alongside index strategies for their clients—including in less- efficient markets where active management can take advantage of fragmented information flow.

This may be especially true for international equities.

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