Fidelity OTC Portfolio Outperforms Nasdaq in Q4 2025

Fidelity's actively managed fund beats benchmark index with 5.47% gain.

Mar. 10, 2026 at 6:49pm

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Fidelity Investments' Fidelity OTC Portfolio, a fund focused on investing in over-the-counter stocks, gained 5.47% in the fourth quarter of 2025, outperforming the 2.72% advance of the NASDAQ Composite Index, the fund's benchmark.

Why it matters

Fidelity's strong performance in its actively managed OTC fund highlights the potential for skilled active management to generate excess returns compared to passive index investing, even in the highly competitive technology-heavy NASDAQ market.

The details

The Fidelity OTC Portfolio, which invests primarily in small- and mid-cap growth companies traded over-the-counter, was able to outpace the broader NASDAQ Composite Index in the fourth quarter through stock selection and sector allocation decisions made by the fund's portfolio management team.

  • The performance data is for the fourth quarter of 2025.

The players

Fidelity Investments

A leading global financial services firm with $12.6 trillion in assets under administration as of December 31, 2023, and over 74,000 associates worldwide.

Fidelity OTC Portfolio

An actively managed mutual fund operated by Fidelity Investments that invests primarily in small- and mid-cap growth companies traded over-the-counter.

NASDAQ Composite Index

A market capitalization-weighted index of over 3,000 stocks listed on the NASDAQ stock exchange, used as the benchmark for the Fidelity OTC Portfolio.

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The takeaway

Fidelity's strong performance with its actively managed OTC fund demonstrates the potential for skilled active management to outperform passive index investing, even in highly competitive technology-focused markets like the NASDAQ.