Some of the largest companies in the world are disruptors that introduced new business models and changed established industries to create entirely new ones. Prominent examples from recent history include Amazon (
Disruption is a subcategory of thematic investing, and there are more ways than ever to invest in these types of innovative companies and themes—if it aligns with your strategy and objectives. Thematic investing can enable you to invest in long-term trends or themes that you believe in, and thematic funds can help you find opportunities that may cut across countries, sectors, and market capitalization.
What are disruptors?
Disruptors are companies that have the potential to change or entirely displace existing companies and industries. These companies can have innovative technologies or operations that are more efficient or make the old way of doing business obsolete—including those that are building out capabilities for global broadband internet networks, blockchain technology, and autonomous driving, to name a few. Disruptive companies have already changed a range of traditional industries, bringing innovative approaches, often enabled by technology and digital platforms, to deliver products and services to customers.
Disruptive investments dissected
While disruptors can be found across many areas of the economy, Fidelity has identified 3 key areas of disruption: automation, communications, and technology. To highlight one, automation may be one of the most powerful trends in the world today. For example, there's massive innovation happening on the factory floor to improve efficiency and increase safety through the use of industrial robotics and advanced sensory equipment. Of course, this may also lead to displacement of some workers.
Disruptive technologies are transforming consumer experiences in a variety of ways, including artificial intelligence, digital, and mobile platforms. Consider ChatGPT and other AI developments that could fundamentally change a wide range of consumer products and services. Consider how advances in communication technologies are changing the way people connect, share information, and engage with the world around them. The rollout of faster wireless networks, the growth of connected devices, and the increasing importance of digital platforms are creating new opportunities for companies that help power communication across homes, businesses, and industries. As consumers spend more time online, companies enabling connectivity, content delivery, and digital engagement may benefit from these long-term trends.
Innovation is also reshaping how people interact with technology in their everyday lives. Businesses are increasingly using cloud computing, artificial intelligence, and data-driven tools to improve operations, uncover insights, and create more personalized customer experiences. These developments may help foster the growth of companies that are transforming how information is collected, analyzed, and delivered, while creating new products and services that could shape the future digital economy.
Fidelity offers 3 disruptive-themed ETFs. Click on the symbols to see the top-10 holdings for each fund, as of September 30,2026:
- Fidelity Disruptive Automation ETF (
). Invests in companies leading the way in automation, from industrial robotics to artificial intelligence and autonomous driving - Fidelity Disruptive Communications ETF (
). Invests in companies changing the way we connect and communicate, from social media to 5G-related digital infrastructure and the internet of things - Fidelity Disruptive Technology ETF (
). Invests in new technologies such as companies delivering cloud computing, harnessing big data, and transforming consumer experiences through digital and mobile platforms
Disruptive investing
Most or all of the investing risks associated with other categories of stocks exist for disruption as well. You should do your due diligence on any individual stock, fund, or other investment to fully understand its characteristics and risks.
Disruptive investments may also carry some unique characteristics to evaluate. For example, in some cases disruptors may exhibit higher-than-average levels of volatility, as investors may have differing opinions on the near-term prospects for these industry-changing companies. This can create opportunities for investors with a long-term focus; however, it also reinforces the importance of diversification. Having a plan and building a diversified portfolio can help mitigate company-specific risks and overall portfolio volatility. If you are interested in these types of investments, you may want to consider a disruptive fund that balances precision to a given theme with exposure across a range of companies and sub-themes.
A common myth about disruption funds is that they are too narrow or too focused for an investor's portfolio. In fact, a thematic fund can hold dozens of stocks, with stocks from different regions, sectors, and market caps. These funds can typically serve as a satellite holding to gain exposure to a theme you believe in alongside a broader diversified portfolio.
Is disruption a theme for you?
The growth in disruptive investments has been substantial with increased investor interest. Disruptive companies may shape what the market looks like for years to come. Disruption funds may focus on long-term trends that are still developing, and depending on your investing objectives and risk constraints, these investment opportunities may be worth considering.