FDEM Profile
Fidelity Emerging Markets Multifactor ETF aims to provide investors with exposure to a diversified portfolio of large- and mid-capitalization companies in emerging markets. The fund strategically invests at least 80% of its assets in securities that are part of its benchmark index, as well as in depositary receipts representing these securities. This approach allows the fund to align closely with the index’s performance, which is designed to capture the dynamics of emerging market equities while emphasizing factors such as valuation, quality, and momentum.
The index used by the ETF incorporates a multifactor strategy to select stocks with favorable characteristics. These include attractive valuations, high-quality financial profiles, positive momentum indicators, and lower volatility compared to the broader emerging markets equity market. Additionally, the index seeks to achieve a lower correlation with the U.S. equity market, providing investors with a means to diversify their portfolios and reduce exposure to fluctuations in the U.S. market.
Managed by Fidelity Investments, a prominent global asset management firm, the ETF benefits from the firm's extensive expertise and research capabilities in emerging markets. Fidelity leverages its deep market insights and analytical resources to construct a portfolio that adheres to the multifactor criteria of the index. This disciplined investment approach aims to deliver potential for strong returns while managing risk through careful selection of securities based on valuation, quality, and momentum factors.
Fidelity Emerging Markets Multifactor ETF also employs rigorous risk management practices to navigate the complexities of emerging markets investing. The fund's management team continuously monitors and adjusts the portfolio to ensure alignment with the index's investment objectives and to adapt to changing market conditions. This proactive management strategy reflects Fidelity's commitment to providing investors with a high-quality investment vehicle designed to capitalize on opportunities in emerging markets while maintaining a focus on risk-adjusted returns.
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