ETF Evaluator: Fidelity Emerging Markets Mltfct ETF () Follow This ETF

Fidelity Emerging Markets Mltfct ETF Overview

Fidelity Emerging Markets Mltfct ETF (FDEM) is a passively managed International Equity Diversified Emerging Mkts exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2019.

The investment seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Emerging Markets Multifactor Index. The fund normally invests at least 80% of its assets in securities included in the index and in depositary receipts representing securities included in the index. The index is designed to reflect the performance of stocks of large- and mid-capitalization emerging markets companies that have attractive valuations, high quality profiles, positive momentum signals, lower volatility than the broader emerging markets equity market, and lower correlation to the U.S. equity market.

About Fidelity Emerging Markets Mltfct ETF (FDEM)

There are 5 members of the management team with an average tenure of 7.26 years: Louis Bottari (2019), Payal Gupta (2019), Peter Matthew (2019), Navid Sohrabi (2019) and Robert Regan (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI EM NR USD index with a weighting of 100% and Fidelity Emerging Markets Multifactor NR index with a weighting of 100%. Fidelity Emerging Markets Mltfct ETF has 240 securities in its portfolio. The top 10 holdings constitute 34.4% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Fidelity Emerging Markets Mltfct ETF is part of the Equity global asset class and is within the International Equity ETF group. Fidelity Emerging Markets Mltfct ETF has 99.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -0.1% There is 99.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fidelity Emerging Markets Mltfct ETF has 2.0% of the portfolio in cash.

Assets Under Management

The fund has $580 million in total assets, which is below the $3 billion average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FDEM Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Emerging Markets Mltfct ETF expense ratio is below average compared to funds in the Diversified Emerging Mkts category. Fidelity Emerging Markets Mltfct ETF has an expense ratio of 0.25%, which is 52% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Emerging Markets Mltfct ETF has a portfolio turnover rate of 76%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 44% for the Diversified Emerging Mkts category.

Recently, in the month of July 2026, Fidelity Emerging Markets Mltfct ETF returned -1.1%, which earned it a grade of B, as the Diversified Emerging Mkts category had an average return of -3.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Fidelity Emerging Markets Mltfct ETF has a trailing yield of 3.00%, which is above the 2.41% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Emerging Markets Mltfct ETF Grades

Year to date, the ETF has returned 16.9%, 0.2 percentage points worse than the category, which translates into a grade of C. The fund has returned 29.3% over the past year (grade of C), 19.3% over the past three years (grade of B) and 10.0% per year over the past five years (grade of A).

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