At a glance
FDEM charges 0.25% a year, above the 0.24% average of the 8 funds most like it (the 5th cheapest of 9). It has $580.8M in assets, the 9th largest of that group; it paid 3.43% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +13.3% with distributions reinvested (S&P 500: +11.5%), 4th of those 9 funds; over three years it returned +21.1% a year. At its worst it fell 30.7% in the 2020 crash (S&P 500: 33.7%) and 24.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 16 months after the lows. Its ten largest positions make up 36.5% of the fund, out of 207 in all.
The short version
Fidelity Emerging Markets Multifactor ETF (FDEM) tracks a Fidelity-built index of about 200 large and mid-size emerging markets stocks, picked for value, quality, momentum and lower volatility. At 0.25% a year, it costs far less than EEM (0.72%) but more than broad index funds like IEMG (0.09%) or VWO (0.07%). Its trailing yield was 3.43% as of October 27, 2026, paid quarterly.
Price history
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FDEM +13.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FDEM official prospectus, to Feb 28, 2026 | — | +25.77% | — | +6.59% | — | +6.66% |
| IXYVI index, same period | — | +26.72% | — | +7.55% | — | +7.62% |
| MC041 index, same period | — | +33.53% | — | +4.20% | — | +6.70% |
| FDEM price data to Oct 27, 2026 | +13.5% | +13.3% | +21.1% | +9.4% | — | +7.8% |
- Over the year to Oct 27, 2026, FDEM returned +13.3%, 4th of 9 among similar funds.
- Its 5-year annualized return was +9.4%.
- In the 2020 COVID crash it fell 30.7% and regained its old high 7.6 months after the low.
- Its worst full calendar year was 2022 (-13.1%); its best was 2025 (+26.8%).
- The deepest fall in its price history was 33.6% (Jan 17, 2020 to Mar 23, 2020), recovered by Dec 3, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +13.5% | — |
| 2025 | +26.8% | +25.77% |
| 2024 | +9.4% | +10.19% |
| 2023 | +17.3% | +16.67% |
| 2022 | -13.1% | -12.19% |
| 2021 | -3.5% | -3.10% |
| 2020 | +8.9% | +7.42% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30.7% over that stretch · deepest drop along the way 30.7%, back to its old high 7.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 20.8% over that stretch · deepest drop along the way 24.2%, back to its old high 16.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.9400 | |
| 2025 | $1.0000 | -2.9% |
| 2024 | $1.0300 | -2.8% |
| 2023 | $1.0600 | +26.2% |
| 2022 | $0.8400 | +18.3% |
| 2021 | $0.7100 | +39.2% |
| 2020 | $0.5100 |
What's inside
As of Jul 31, 2026, the fund held 207 securities; the ten largest made up 36.52% of assets.
| Holding | Weight | |
|---|---|---|
| TAIWAN SEMICONDUCTOR MFG CO LTD | 12.63% | |
| SAMSUNG ELECTRONICS CO LTD | 7.10% | |
| SK HYNIX INC | 4.57% | |
| TENCENT HLDGS LTD | 3.19% | |
| FIBRA UNO ADMINISTRACION SA DE | 1.69% | |
| ORION CORP/REPUBLIC OF KOREA/NEW | 1.60% | |
| CHINA RESOURCES MIXC LIFESTYLE SERVICES LTD | 1.58% | |
| KIMBERLY CLARK DE MEXICO SAB D | 1.46% | |
| EMAAR DEVELOPMENT PJSC | 1.38% | |
| MEDIATEK INC | 1.33% | |
| PETROLEO BRASILEIRO SA - PETROBRAS | 1.30% | |
| BRITANNIA INDUSTRIES LTD | 1.28% | |
| HENGAN INTERNATIONAL GROUP CO LTD | 1.22% | |
| INNER MONGOL YITAI COAL CO LTD | 1.18% | |
| PETROCHINA CO LTD | 1.13% |
By country
Taiwan 22.92%South Korea 18.71%Cayman Islands 12.23%China 10.76%India 8.62%By asset type
Stocks 98.67%Preferred stock 0.52%Bonds and notes 0.03%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $58.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.07%, -2.48%, -1.06%.
How it works
FDEM is an index fund. Before fees, it aims to match the Fidelity Emerging Markets Multifactor Index, which Fidelity built using its own rules. It normally keeps at least 80% of assets in the index's stocks or in depositary receipts for them. A depositary receipt is a certificate that stands for shares of a foreign company. The starting pool is large and mid-size companies in emerging markets. The prospectus defines those markets using MSCI's list, the World Bank's income groups and Fidelity's own judgment.
Each stock gets a combined score on four factors: valuation (how cheap it looks), quality, momentum (recent price trend) and volatility. The top scorers in each sector and country make the cut. Within a sector, each stock's weight starts from its market value in the wider emerging markets universe. Every stock in that sector then gets the same extra boost. The index leans toward the five sectors that move least like large US stocks and away from the six that move most like them. Even so, chipmakers led as of July 31, 2026: Taiwan Semiconductor at 12.6%, Samsung Electronics at 7.1% and SK Hynix at 4.6%.
Portfolio turnover was 76%, so a large share of holdings changes each year. The fund lends out securities for extra income, with a small risk that a borrower fails to return them. It may also handle creations and redemptions in cash, which can make it less tax-efficient than ETFs that trade securities in kind.
What it really costs
- FDEM charges 0.25% a year, versus an average of 0.24% for the similar funds below (5th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $318 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| FDEM | $26 | $80 | $141 | $318 |
In a retirement portfolio
It adds stocks from Taiwan, South Korea, China, India and Mexico, built to move less in step with US stocks, though it has been more volatile than a broad US fund.
FDEM launched in February 2019, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 30.7% and took about 7.6 months to recover. In the 2022 bear market it dropped 24.2% and needed about 16 months, until February 2024, to get back. Its worst calendar year was 2022, down 12.19%. Anyone who had to sell shares or take income during slumps like these would have locked in losses.
The trailing yield was 3.43% as of October 27, 2026, paid quarterly, though dividends from emerging markets companies can vary. The 0.25% fee works out to $318 over 10 years on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want emerging markets stocks screened for value, quality, momentum and lower volatility, rather than a plain market-value index.
- Those who want quarterly income from overseas stocks. The trailing yield was 3.43% as of October 27, 2026.
- Investors comparing factor-based emerging markets funds on cost: 0.25% a year is below EEM's 0.72% and DFEM's 0.39%.
Look elsewhere if
- Cost-focused investors who are happy with plain market-value weighting: IEMG charges 0.09% and VWO 0.07% for broad emerging markets exposure.
- Anyone uneasy about concentration in chipmakers: Taiwan Semiconductor, Samsung and SK Hynix made up about 24% of assets as of July 31, 2026.
- Investors who can't sit through deep drops: it fell 33.6% in early 2020 and took 16 months to recover after 2022.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| FDEM this fund | — | 0.25% | $580.8M | +13.3% | +21.1% |
| EEM iShares MSCI Emerging Markets ETF | 44% | 0.72% | $31.21B | +12.7% | +20.3% |
| IEMG iShares Core MSCI Emerging Markets ETF | 42% | 0.09% | $160.90B | +11.7% | +19.8% |
| ESGE iShares ESG Aware MSCI EM ETF | 41% | 0.26% | $6.91B | +15.2% | +23.2% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 39% | 0.25% | $24.92B | +27.3% | +24.6% |
| SCHE Schwab Emerging Markets Equity ETF | 34% | 0.11% | $13.00B | +4.4% | +16.7% |
| DFEM Dimensional Emerging Markets Core Equity 2 … | 34% | 0.39% | $8.96B | +14.6% | +21.4% |
| VWO Vanguard FTSE Emerging Markets ETF | 32% | 0.07% | $162.04B | +3.3% | +16.8% |
Questions investors ask
What does FDEM invest in?
FDEM holds large and mid-size emerging markets stocks chosen by the Fidelity Emerging Markets Multifactor Index. As of July 31, 2026, it owned 207 stocks, and the top 10 made up 36.5% of assets. Taiwan Semiconductor (12.6%), Samsung Electronics (7.1%), SK Hynix (4.6%) and Tencent (3.2%) led the list. By country, Taiwan was 22.9%, South Korea 18.7%, China 10.8% (plus 12.2% in companies registered in the Cayman Islands), India 8.6% and Mexico 3.7%.
What's the difference between FDEM and IEMG?
IEMG is a broad, low-cost emerging markets fund charging 0.09%. FDEM picks stocks by valuation, quality, momentum and volatility and charges 0.25%. About 42% of their holdings overlap. IEMG is far larger, with $160.9 billion in net assets as of August 31, 2026, versus FDEM's $580.8 million as of July 31, 2026. FDEM returned 13.3% over one year as of October 27, 2026. IEMG returned 11.3% as of October 30, 2026.
Does FDEM pay dividends?
Yes. FDEM pays dividends quarterly. Over the twelve months to October 27, 2026, it paid $1.17 per share, a trailing yield of 3.43%. That is a fairly high yield for a stock fund, partly because the index favors cheaper stocks and sectors that move less like US large caps. Dividends from emerging markets companies can rise or fall with their profits, currencies and local rules, so past payouts may not repeat.
What is FDEM's expense ratio?
FDEM's expense ratio is 0.25% a year, per its prospectus filed February 24, 2026. In the SEC's standard example, $10,000 earning 5% a year would cost $26 after one year, $141 after five and $318 after ten. The fee is close to the 0.24% average of similar funds. It is well below EEM's 0.72% but above IEMG's 0.09% and VWO's 0.07%.
How has FDEM performed since launch?
Through February 28, 2026, FDEM returned 25.77% over one year, 6.59% a year over five years and 6.66% a year since its 2019 launch. Its index returned 7.55% a year over five years, so fees and costs cost the fund about one point a year. Based on price, it returned 9.4% a year over five years as of October 27, 2026. Its worst quarter was a 24.85% loss in early 2020.