What Is the FDEM ETF? Returns, Fees, Holdings and Alternative ETFs Explained
The Fidelity Emerging Markets Multifactor ETF is a passive product that invests in emerging market stocks using several factors, offering factor-based emerging market exposure and dividends. Fees, currency exposure and volatility are the key items to check, and comparison with a standard emerging markets ETF is the main selection criterion. The trading ticker is FDEM.
SubscribeWhat Is the Fidelity Emerging Markets Multifactor ETF?
This passive ETF tracks a multifactor index that selects large- and mid-cap emerging market stocks that are undervalued, high in quality, positive in momentum, low in volatility and low in correlation with the US market.
It suits investors who want to diversify across emerging market stocks using several factors and are willing to accept emerging market volatility and currency risk.
It is an ETF managed by Fidelity using a passive (index-tracking) approach.
How Does the Fidelity Emerging Markets Multifactor ETF Invest?
| Item | Details |
|---|---|
| Tracked index | Emerging markets multifactor index |
| Management style | Passive (multifactor) |
| Rebalancing frequency | Periodic (per index rules) |
| Dividend frequency | Quarterly dividends |
| Total expense ratio | 0.25% |
Among large- and mid-cap emerging market stocks, the fund selects holdings and sets weights using factors such as value, quality, momentum, low volatility and low correlation with the US. Unlike simple market-cap weighting, it combines several factors to provide diversified exposure to emerging market stocks.
- Emerging market stock selection that combines several factors
- A portfolio built with low correlation to the US in mind
Fidelity Emerging Markets Multifactor ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $499.2M, and the total expense ratio is 0.25% per year.
Unlike market-cap-weighted emerging markets ETFs, it applies several factors, so its performance can diverge from the market, and it uses a low-volatility factor to try to dampen volatility somewhat.
Fidelity Emerging Markets Multifactor ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeEmerging market stocks react sensitively to each country's economy, risk appetite, exchange rates and factor preferences. The fund can show relative strength when the factors it applies are in favor, but volatility and currency burdens can grow when a particular style dominates strongly or when investors turn risk averse.
Money tends to flow into emerging market factor ETFs when interest in emerging market diversification and factor investing rises, and it can flow out when the dollar strengthens or risk aversion intensifies.
Fidelity Emerging Markets Multifactor ETF Pros and Cons
Its strength is diversification across emerging market stocks by combining several factors, while currency exposure, emerging market risk and factor deviation are the drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Fidelity Emerging Markets Multifactor ETF Alternatives and Related Products
DEM, DGS, DVYE and others shown in the table are ETFs focused on emerging market dividends, and their selection criteria differ. For broader emerging market exposure, you can also compare VWO, a flagship emerging markets fund, IEMG, a broad emerging markets fund, and AVEM, an emerging markets fund that reflects value and profitability. These funds differ in selection method, range of holdings and fees, so it is best to choose according to your investment style.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DFEM | Dimensional Emerging Markets Core Equity 2 ETF | $36.49 | +0.1% | $8.9B | 0.39% | 2.13% | +10.2% |
 DEM | WisdomTree Emerging Markets High Dividend Fund | $52.71 | -0.2% | $4.0B | 0.63% | 4.19% | +14.7% |
 DGS | WisdomTree Emerging Markets SmallCap Dividend Fund | $58.68 | +0.2% | $1.6B | 0.58% | 4.05% | +3.5% |
 EDIV | State Street SPDR S&P Emerging Markets Dividend ETF | $40.40 | +0.1% | $1.2B | 0.49% | 4.33% | +4.8% |
 DVYE | iShares Emerging Markets Dividend ETF | $32.98 | -1.1% | $1.1B | 0.50% | 5.28% | +8.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| TSM | Taiwan Semiconductor Manufacturing ADR | 0.24% | $398.63 | -1.9% | $2.07T | 25.7 | 1.05% |
| SKHY | SK Hynix Inc ADR | 0.05% | $147.60 | -1.1% | $1.08T | 9.6 | 1.52% |
| PBR-A | Petroleo Brasileiro SA Petrobras ADR | 0.01% | $18.74 | -3.5% | $51.0B | 4.7 | 7.92% |
| HDB | HDFC Bank Ltd ADR | 0.02% | $22.70 | +2.3% | $116.7B | 13.5 | 1.89% |
| NTES | NetEase Inc ADR | 0.01% | $115.49 | +1.6% | $73.6B | 16.0 | 2.76% |
| BMO | Bank of Montreal | 0.01% | $173.08 | +1.1% | $120.3B | 19.5 | 2.81% |
 TLK | Telkom Indonesia (Persero) Tbk PT ADR | 0.01% | $10.85 | -2.9% | $10.7B | 11.3 | 10.58% |
Fidelity Emerging Markets Multifactor ETF Investor Checkpoints
These are the points to review before investing in FDEM. As an emerging market factor ETF, it is important to check currency exposure, emerging market risk, factor deviation and fee levels in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Check the fees of a passive multifactor ETF | On the low side |
| 💱 Currency | Check the impact of multiple currency movements | Unhedged |
| 🌏 Emerging market risk | Check emerging market volatility and geopolitical risk | Needs review |
| 📊 Factor deviation | Performance differences from applying factors | May vary |
The fund is exposed to multiple currency movements, so returns converted to Korean won can swing with exchange rates, and emerging markets by nature carry volatility and geopolitical risk. Investors should also consider that, depending on the factors applied, performance can differ from a market-cap-weighted market.
This is a passive ETF suited to investors who want to diversify across emerging market stocks using several factors. If you want simple market-cap weighting, a standard emerging markets ETF may be the better fit, while FDEM can be an alternative for those who want factor-based diversification.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 4, 2026.
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