FDEM: Emerging Markets ETF Beating The Benchmark But Lagging Competitors

Fred PiardInvesting Group LeaderFollow5ShareSavePlay(6min)CommentsSummaryFidelity Emerging Markets Multifactor ETF employs a multifactor strategy emphasizing valuation, quality, momentum, low volatility, and low U.S. equity correlation.FDEM has outperformed EEM in value, earnings growth, return, and risk metrics since inception.Despite a low expense, FDEM lags in total return and risk-adjusted performance versus comparable multifactor ETFs.AVEM offers superior total return and liquidity, while EMMF provides better risk-adjusted returns, making FDEM less compelling relative to competitors.Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here » Ildo Frazao/iStock via Getty Images FDEM Strategy Fidelity Emerging Markets Multifactor ETF (FDEM) was launched on 2/26/2019 and tracks the Fidelity Emerging Markets Multifactor Index. FDEM has a portfolio of 197 stocks, a 12-month trailing yield of 3.26%, and an expenseThis article was written byFred Piard16.37K FollowersFollowFred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.