The Fidelity Fundamental Emerging Markets ETF is an active ETF that selects listed emerging market companies in which fundamental analysis has produced high conviction. Rather than simply weighting holdings by market value, it considers each company's earnings power, financial soundness, growth path, and risk factors together.

It suits investors who want to add emerging market growth opportunities to a long-term portfolio and can tolerate volatility stemming from country, currency, and policy changes.

This is an ETF managed by Fidelity using an active management approach.

The fund builds its portfolio by using Fidelity's analytical framework to comprehensively review emerging market companies' earnings, financial condition, competitiveness, and growth potential. Country and sector exposure may vary depending on the individual circumstances and risk assessment of each holding, so results can differ from those of broad index-tracking products.

• Fundamentals-based selection
• Portfolio construction based on manager judgment

Assets under management (AUM) are $62.1M, and the total expense ratio is 0.60% per year.

Trading liquidity and fees are items to check together when choosing an emerging market ETF. Unlike broad index-tracking products, the FFEM ETF's stock selection results can affect its performance and holdings structure, so it is worth distinguishing between short-term trading conditions and the long-term management philosophy.

Emerging market equities can react sensitively to the global economy, the value of the dollar, commodity prices, local currencies, and the policy environment. The performance of the FFEM ETF may also swing widely, driven not only by these market factors but also by the earnings of its actively selected holdings and changes in their relative valuations.

Fund flows into emerging market assets can vary with risk appetite, the interest rate path in developed economies, the policies of major countries including China, and corporate earnings expectations. Because this product does not mechanically hold the entire market, it is better to separate the general direction of emerging markets from the effect of individual stock selection when interpreting fund flows.

Its strength is the pursuit of differentiated exposure within emerging markets through fundamental selection, while volatility tied to country, currency, and management decisions is a risk to keep in mind.

The SEEM ETF, FEMR ETF, ROAM ETF, FCA ETF, and BREE ETF listed in the table are all products that can serve as references when comparing emerging market equities or specific emerging market exposures. Among them, the SEEM ETF, FEMR ETF, and ROAM ETF cover emerging markets broadly, while the FCA ETF may lean more heavily toward the Chinese market, so regional exposure should be distinguished. The BREE ETF is a comparison candidate for examining a separate research-based approach. When choosing the FFEM ETF, it is appropriate to compare not only fees but also whether the selection is active, regional concentration, distribution policy, and management philosophy.

When considering the FFEM ETF, rather than relying solely on expectations for emerging markets as a whole, investors should check how active management differs from exposure to the entire market. Distribution policy, costs, trading conditions, country-specific variables, and the exchange rate effect in Korean won terms are items to review together before holding for the long term.

Emerging markets can be strongly affected by policy, liquidity, exchange rates, and geopolitical variables, along with their potential for economic growth. Because the FFEM ETF is an actively managed product, the relative performance of its selected stocks may fall short of expectations even when the market rises, and investors who measure returns in Korean won must also bear exchange rate fluctuations.

The Fidelity Fundamental Emerging Markets ETF can be a candidate for investors who want access to emerging markets broadly while expecting a selection effect from company analysis. However, its management approach and performance path may differ from those of broad index-tracking ETFs, so it is advisable to make a decision after confirming the distribution policy, costs, regional exposure, and the range of volatility you can accept.