It is an actively managed ETF that invests across emerging-market equities. The management team combines quantitative models with fundamental analysis to select emerging-market stocks, and allocates a significant portion of assets to securities economically tied to emerging markets.

It suits investors who want diversified exposure to emerging-market growth and prefer active management that goes beyond simple index tracking.

It is an ETF run by Fidelity using an active (actively managed) approach.

The fund follows an active strategy in which the management team combines quantitative models with fundamental research to select emerging-market securities and adjust their weights. It allocates most of its assets to emerging-market companies and to securities economically tied to emerging markets, and it seeks to outperform rather than simply replicate an index.

• Fidelity's active management combining quantitative and fundamental approaches
• Fees below the category average

Assets under management (AUM) stand at $198.8M, and the total expense ratio is 0.38% per year.

Because it is actively managed, its holdings and weightings may differ from those of comparable passive emerging-market ETFs.

Emerging-market equities tend to be highly volatile, depending on global risk appetite, the strength of the US dollar, and economic conditions in major emerging economies such as China, South Korea, and India. As an actively managed ETF, its stock selection affects performance.

Emerging-market ETFs tend to see inflows when global capital is in a risk-on phase and outflows when it turns risk-averse. As an actively managed ETF, it can be viewed as still in the stage of gradually building its asset base since launch.

Its strengths are active management that combines quantitative and fundamental analysis along with low fees, while its weaknesses are the volatility inherent to emerging markets and currency exposure.

FFEM, a fundamentals-based active ETF from the same Fidelity family shown in the table, is the most direct comparison, and SEEM also follows an active strategy of selecting emerging-market stocks. ROAM, which uses a multifactor approach, differs in management style and fee structure. Beyond the table, investors seeking broad passive exposure can also consider VWO or IEMG, large low-cost emerging-market core ETFs. Whether the fund is actively managed and how much it charges are the key selection criteria.

Here are the points to review before investing in FEMR. As an active emerging-market ETF, it is advisable to thoroughly check its management approach and stock selection strategy, the volatility inherent to emerging markets, currency exposure, and its fee level in advance.

Changes in emerging-economy growth and policy, along with exchange-rate swings, are the main drivers of short-term volatility. Because the fund is actively managed, you should also consider the possibility of a performance gap versus comparable indexes depending on the management team's stock selection.

It is an ETF worth considering for investors who want to diversify across emerging markets using an active approach. If cost and passive exposure come first, VWO and IEMG may fit better, while this ETF can be an alternative for those who want active selection together with low fees.