Fidelity's multifactor ETF offers steadier emerging market gains by avoiding index concentration risks.

Fidelity Emerging Markets Multifactor ETF (FDEM) uses value, quality, momentum, and low volatility factors to diversify emerging market investments and reduce correlation with U.S. stocks. While it trails plain index funds like iShares MSCI Emerging Markets ETF during momentum-driven rallies, FDEM outperforms over full market cycles by managing risk better. The fund suits investors seeking steady, diversified emerging market exposure but comes with higher costs, irregular income, and sensitivity to global economic factors like the dollar and interest rates.