Fidelity Fundamental Emerging Markets ETF

Fidelity Fundamental Emerging Markets ETF (FFEM) is an actively managed fund. It buys stocks in emerging markets such as Taiwan, South Korea, China and India, chosen by Fidelity's analysts and then sized by a computer model. It costs 0.60% a year, more than the 0.26% average for similar funds. It is also small and concentrated: Taiwan Semiconductor alone was about 17% of assets as of July 31, 2026.

• The deepest fall in its price history was 15.5% (Jun 22, 2026 to Oct 26, 2026), not yet recovered.

No distribution history is available for this fund.

As of Jul 31, 2026, the fund held 106 securities; the ten largest made up 48.89% of assets. It also reported 4.47% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $20.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +9.98%, -0.61%, -3.36%.

FFEM does not track an index. Its goal is long-term growth of capital. It normally puts at least 80% of its assets into companies tied to emerging markets, either directly or through depositary receipts (certificates that trade on another exchange and represent a company's foreign-listed shares). A country counts as emerging if MSCI classifies it that way, if the World Bank rates it low- to middle-income, or if Fidelity judges it to have similar traits. The fund spreads its money across several of these countries.

The stock-picking starts with research by Fidelity's analysts, who study each company's business and finances and make recommendations. It also draws on reference portfolios run by Fidelity Management & Research. A quantitative model then builds the actual portfolio. It gives more weight to the ideas the team is most confident in, while setting limits on risk, liquidity and trading costs. The prospectus sets no fixed rebalancing schedule. Turnover was 52%, so the fund replaces a fair share of its holdings each year.

A few mechanics matter for holders. The fund is non-diversified, which means it can hold bigger positions in fewer companies than a diversified fund. It may use derivatives, and it held one MSCI emerging-markets futures contract, worth 0.02% of assets, as of July 31, 2026. It also handles some share creations and redemptions in cash, which can make it less tax-efficient than ETFs that trade securities in-kind.

• FFEM charges 0.6% a year, versus an average of 0.26% for the similar funds below (8th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).

It is a costly, concentrated, actively managed emerging-markets fund with a short record, so it fits best as a small add-on rather than a foundation.

FFEM could add exposure to large companies outside the US, but it has little history to judge. It launched on November 19, 2024, so it has no record from the 2008, 2020 or 2022 downturns. In 2025, its only full calendar year, it returned 39.34%. It has fallen since then. Its deepest drop in the available price history was 15.5%, from June 22 to October 26, 2026, and it had not recovered as of October 27, 2026. Someone forced to sell during a drop like that would lock in the loss.

It is not an income fund. The yield was 0.93% as of October 27, 2026, paid quarterly. Its cost is high for the category. On a $10,000 investment, the SEC's standard example puts expenses at $61 in the first year and $750 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

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