Australian and ASX-listed ETFs like the Fidelity FEMX ETF (ASX: FEMX) are gaining more attention than ever because of how easy they make it for investors to get exposure to the International shares sector. Here’s a quick review of the FEMX ETF.
What does the FEMX ETF do for a diversified portfolio?
The Fidelity FEMX Fund provides investors with exposure to the performance of emerging market companies. The Fidelity Global Emerging Markets Fund is a managed fund that has been operating since 2013. It listed on the ASX in October 2018, making it easier for investors to enter and exit the fund.
FEMX could be used by Australian investors to get exposure to a basket of public companies, including financials, industrials and technology companies, listed in emerging markets. The Fund actively seeks companies with a track record of robust corporate governance and selects companies it believes are well-positioned to generate returns through market cycles.
How big is the Fidelity FEMX ETF?
The Fidelity FEMX ETF had $227.46 million of money invested when we last pulled the monthly numbers. Given FEMX’s total funds under management (FUM) figure is over $100 million, the ETF has met our minimum criteria for the total amount of money invested, otherwise known as FUM. We draw the line at $100 million for ETFs in the International shares sector because we believe that relative to smaller ETFs, achieving this amount of FUM de-risks the ETF.
FEMX ETF fees reviewed
Fidelity charges investors a yearly management fee of 0.99% for the FEMX ETF. This means that if you invested $2,000 in FEMX for a full year, you could expect to pay management fees of around $19.80.
For context, the average management fee (MER) of all ETFs covered by Best ETFs Australia on our complete list of ASX ETFs is 0.51% or around $10.20 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
Next steps
Even if you like what you see, before diving straight into buying the FEMX ETF, please read the ETF’s Product Disclosure Statement (PDS). Also, be sure to take a look at our Fidelity FEMX report for a more comprehensive overview of this ETF. While you’re on our website, use our complete list of ASX ETFs to search for a few different ETFs in the sector and conduct a side-by-side comparison using everything you’ve learned here.
