Fidelity Enhanced Emerging Markets ETF

Fidelity Enhanced Emerging Markets ETF (FEMR) is an actively managed fund. It uses a model-driven, research-based process to pick about 140 emerging-market stocks, with the goal of beating the MSCI Emerging Markets Index. It charges 0.39% a year. That is above the 0.30% average for similar funds and well above index funds such as IEMG at 0.09%. Its record is short because it launched in November 2024.

• The deepest fall in its price history was 15.5% (Jun 22, 2026 to Jul 29, 2026), not yet recovered.

No distribution history is available for this fund.

As of Jun 30, 2026, the fund held 142 securities; the ten largest made up 36.07% of assets.

• Over the three months to Jun 30, 2026, investors added a net $37.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +15.65%, +11.18%, -0.74%.

FEMR does not track an index. Fidelity runs it against the MSCI Emerging Markets Index and tries to earn a higher total return than that benchmark. It normally puts at least 80% of its assets in companies located in emerging markets or tied to them economically, mostly through common stocks. To decide where a company belongs, Fidelity looks at where it is incorporated, where it trades, and whether at least 50% of its revenue or assets come from one country.

Stock picking is quantitative, which means computer models drive it rather than one manager's judgment. Fidelity's research looks for long-term drivers of returns, such as valuation (how cheap a stock is), growth and quality. A proprietary risk framework then builds a broadly diversified portfolio spread across countries. As of June 30, 2026, the fund held 142 stocks. The largest were Taiwan Semiconductor (11.8%), SK Hynix (6.6%) and Samsung Electronics (6.4%). Taiwan (29.5%) and South Korea (21.9%) were the biggest country weights.

Two mechanical points matter. First, turnover was 130%, so in a year the fund traded more than the full value of its portfolio. That raises trading costs and can create taxable gains. Second, the fund creates and redeems shares partly for cash. That may make it less tax-efficient than ETFs that exchange securities in kind. The fund can also use derivatives such as index futures, which made up 0.02% of assets as of June 30, 2026.

• FEMR charges 0.39% a year, versus an average of 0.3% for the similar funds below (6th of 9, cheapest first).
• Of that, 0.38% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $493 over 10 years (assuming a 5% annual return).

Its concentrated stakes in Taiwan and South Korea, rules-based stock picking and short record suit a small, higher-risk slice better than a core position.

FEMR launched on November 19, 2024, so it has no record through the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Its only full calendar year, 2025, gained 34.38%. Its deepest drop in the short price history available was 15.5%, from June 22 to July 29, 2026, and it had not recovered as of October 27, 2026. Heavy stakes in Taiwan and South Korea can make swings sharp, and a retiree forced to sell in a slump would lock in losses.

It pays dividends quarterly; the yield was 1.4% as of October 27, 2026. The expense ratio, or yearly fee, is 0.39%, above the 0.30% average for similar funds; on $10,000, the SEC's standard example puts costs at $40 after one year and $493 after ten years. Past results don't predict future returns, and a plan should weigh the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.