FEDM ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings and Alternative ETFs
The FlexShares ESG & Climate Developed Markets ex-US ETF (FEDM) is a core international fund that spreads investments broadly across large- and mid-cap stocks in developed markets outside the US, with ESG and climate factors built in. The expense ratio, outlook, dividends and comparison with related funds are the key selection criteria.
SubscribeWhat Is the FlexShares ESG & Climate Developed Markets ex-US ETF?
This is a core ETF that tracks an index of large- and mid-cap stocks in developed markets outside the US, selected using ESG and climate criteria. Sustainability scores and carbon risk are used to adjust the weight of each holding.
It suits long-term investors who want to diversify into developed markets outside the US while also taking ESG and climate factors into account.
It is a passively managed ETF (index tracking) run by FlexShares.
How Does the FlexShares ESG & Climate Developed Markets ex-US ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Developed Markets ex-US ESG & Climate Index |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Regular rebalancing |
| Dividend Frequency | Quarterly dividends |
| Fund Manager | FlexShares |
| Expense Ratio | 0.12% |
The fund holds stocks from developed markets outside the US on a market-capitalization basis, then adjusts weights using ESG scores and risk indicators related to climate and carbon. It keeps broad diversification by reducing exposure to companies that fall short of sustainability criteria.
- Index construction that reflects both ESG and climate factors
- Core exposure to developed markets outside the US
FlexShares ESG & Climate Developed Markets ex-US ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) are $85.5M, and the expense ratio is 0.12% per year.
Compared with the similar ESG international equity ETFs shown in the table, this fund stands out for also incorporating climate factors, and it differs in fees and in its approach to diversification.
FlexShares ESG & Climate Developed Markets ex-US ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund is affected by both the performance of developed stock markets outside the US and currency fluctuations. Because ESG and climate screening adjusts holding weights, it tends to move broadly in line with the overall market.
Fund flows depend on demand for sustainable investing and regional diversification, and interest tends to rise when investors want international diversification to ease their concentration in the US.
FlexShares ESG & Climate Developed Markets ex-US ETF Pros and Cons
Its strengths are diversification across developed markets outside the US and the inclusion of ESG and climate factors, while currency exposure and a relatively small asset base are points to watch.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the FlexShares ESG & Climate Developed Markets ex-US ETF
Funds such as ESGD and VSGX shown in the table invest in international developed-market ESG stocks outside the US and are direct comparisons, while funds such as ESGE offer emerging-market ESG exposure and therefore target a different region. Alternatives not in the table include DMXF, which provides the same developed-market ex-US ESG exposure, as well as ESGV and ESGU, which can be considered for investors who want US ESG exposure.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 ESGD | iShares Trust iShares ESG Aware MSCI EAFE ETF | $103.16 | +0.3% | $11.9B | 0.20% | 3.32% | +9.6% |
 VSGX | Vanguard ESG International Stock ETF | $79.79 | +0.5% | $6.6B | 0.10% | 3.04% | +13.3% |
 ESGE | iShare Inc iShares ESG Aware MSCI EM ETF | $51.66 | +0.5% | $6.5B | 0.25% | 2.2% | +17.5% |
 KLMN | Invesco MSCI North America Climate ETF | $31.68 | +0.4% | $2.5B | 0.09% | 1.14% | +14.6% |
 KLMT | Invesco MSCI Global Climate 500 ETF | $34.99 | +0.7% | $1.6B | 0.10% | 1.78% | +14.3% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| ASML | ASML Holding NV | 0.06% | $1676.69 | +2.8% | $646.2B | 41.3 | 0.63% |
| RY | Royal Bank Of Canada | 0.04% | $202.02 | +1.5% | $280.1B | 17.6 | 2.45% |
 SHEH | Shell plc ADRhedged | 0.03% | $76.44 | -0.2% | $0.0M | - | 1.6% |
| AZN | Astrazeneca plc | 0.02% | $168.45 | -0.2% | $261.2B | 25.2 | 1.98% |
| NVS | Novartis AG ADR | 0.03% | $153.93 | +0.2% | $281.8B | 23.2 | 2.82% |
| BBVA | Banco Bilbao Vizcaya Argentaria SA ADR | 0.02% | $25.79 | +1.2% | $140.1B | 11.4 | 4.56% |
Investor Checkpoints for the FlexShares ESG & Climate Developed Markets ex-US ETF
Here are the points to review before investing in FEDM. It is a core developed-market asset outside the US, but costs, currency exposure and sector weight differences from ESG and climate screening should be checked before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cumulative cost impact over a long holding period | Annual fee applies |
| 💱 Exchange Rate | Impact on returns converted into won | Unhedged |
| 🌍 Regional Exposure | Whether it diversifies across developed markets excluding the US | Needs confirmation |
| 🌱 ESG Criteria | Sector weight differences resulting from screening | Applied |
Exchange rate movements and economic and policy variables in developed markets outside the US are the main drivers of short-term volatility. ESG and climate screening can make some sector weights differ from the market index.
For investors who want to ease their concentration in the US while also including ESG and climate factors, it is worth considering as a core diversification tool. If pure regional diversification is the goal, it is reasonable to compare fees and holdings against ESGD and VSGX before choosing.
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 July 2, 2026.
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