If you have been looking for Non US - Equity funds, it would not be wise to start your search with Fidelity International Small Cap (FISMX Quick QuoteFISMX - Free Report) . FISMX has a Zacks Mutual Fund Rank of 4 (Sell), which is based on various forecasting factors like size, cost, and past performance.

Objective

Zacks categorizes FISMX as Non US - Equity, a segment stacked high with options. Non US - Equity mutual funds like to invest in companies outside of the United States, an important characteristic since global mutual funds are known to keep a good portion of their portfolio stateside. These kinds of funds can often extend across all cap levels, and will typically allocate their investments between emerging and developed markets.

History of Fund/Manager

Fidelity is based in Boston, MA, and is the manager of FISMX. Since Fidelity International Small Cap made its debut in September of 2002, FISMX has garnered more than $1.52 billion in assets. The fund is currently managed by David Jenkins who has been in charge of the fund since November of 2021.

Performance

Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 12.67%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 3.98%, which places it in the middle third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. FISMX's standard deviation over the past three years is 16.01% compared to the category average of 14.8%. Looking at the past 5 years, the fund's standard deviation is 15.9% compared to the category average of 15.91%. This makes the fund less volatile than its peers over the past half-decade.

Risk Factors

The fund has a 5-year beta of 0.76, so investors should note that it is hypothetically less volatile than the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FISMX's 5-year performance has produced a negative alpha of -1.5, which means managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, FISMX is a no load fund. It has an expense ratio of 1.04% compared to the category average of 0.98%. Looking at the fund from a cost perspective, FISMX is actually more expensive than its peers.

Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively strong performance, average downside risk, and higher fees, Fidelity International Small Cap ( FISMX ) has a low Zacks Mutual Fund rank, and therefore looks a poor potential choice for investors right now.

For additional information on this product, or to compare it to other mutual funds in the Non US - Equity, make sure to go to www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.