FDEM vs. FEMR

Last updated Jul 15, 2026

FDEM (Fidelity Emerging Markets Multifactor ETF) and FEMR (Fidelity Enhanced Emerging Markets ETF) are both exchange-traded funds - FDEM is a Emerging Markets Equities fund tracking the Fidelity Targeted Emerging Markets Factor Index, while FEMR is a Emerging Markets Diversified fund actively managed by Fidelity. FDEM is passively managed, while FEMR is actively managed. Over the past year, FDEM returned 29.47% vs 46.18% for FEMR. Their correlation of 0.88 suggests significant overlap in exposure. FDEM charges 0.45%/yr vs 0.38%/yr for FEMR.

Performance

FDEM vs. FEMR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Emerging Markets Multifactor ETF (FDEM) and Fidelity Enhanced Emerging Markets ETF (FEMR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDEM achieves a 16.33% return, which is significantly lower than FEMR's 25.76% return.

FDEM

• 1D: 1.55%
• 1M: -3.09%
• 6M: 10.98%
• YTD: 16.33%
• 1Y: 29.47%
• 3Y*: 19.95%
• 5Y*: 8.90%
• 10Y*: —

FEMR

• 1D: 1.78%
• 1M: -2.43%
• 6M: 18.41%
• YTD: 25.76%
• 1Y: 46.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FDEM vs. FEMR - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FDEM Fidelity Emerging Markets Multifactor ETF	16.33%	26.75%	-1.07%
FEMR Fidelity Enhanced Emerging Markets ETF	25.76%	35.27%	-1.48%

Correlation

The correlation between FDEM and FEMR is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (All Time) Calculated using the full available price history since Nov 21, 2024	0.88

The correlation between FDEM and FEMR has been stable across timeframes, ranging from 0.88 to 0.90 - a consistent structural relationship.

Return for Risk

FDEM vs. FEMR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FDEM

FDEM Risk / Return Rank: 54
FDEM Sharpe Ratio Rank: 52
FDEM Sortino Ratio Rank: 48
FDEM Omega Ratio Rank: 56
FDEM Calmar Ratio Rank: 58
FDEM Martin Ratio Rank: 58

FEMR

FEMR Risk / Return Rank: 74
FEMR Sharpe Ratio Rank: 74
FEMR Sortino Ratio Rank: 66
FEMR Omega Ratio Rank: 76
FEMR Calmar Ratio Rank: 78
FEMR Martin Ratio Rank: 76

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FDEM vs. FEMR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Emerging Markets Multifactor ETF (FDEM) and Fidelity Enhanced Emerging Markets ETF (FEMR). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FDEM	FEMR	Difference
Sharpe ratio: Return per unit of total volatility	1.44	1.89	-0.45
Sortino ratio: Return per unit of downside risk	1.94	2.41	-0.47
Omega ratio: Gain probability vs. loss probability	1.28	1.35	-0.08
Calmar ratio: Return relative to maximum drawdown	2.33	3.21	-0.88
Martin ratio: Return relative to average drawdown	8.13	11.20	-3.08

FDEM vs. FEMR - Sharpe Ratio Comparison

The current FDEM Sharpe Ratio is 1.44, which is comparable to the FEMR Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of FDEM and FEMR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FDEM vs. FEMR - Drawdown Comparison

The maximum FDEM drawdown since its inception was -33.65%, which is greater than FEMR's maximum drawdown of -15.58%. Use the drawdown chart below to compare losses from any high point for FDEM and FEMR.

Drawdown Indicators

	FDEM	FEMR	Difference
Max Drawdown Largest peak-to-trough decline	-33.65%	-15.58%	-18.07%
Max Drawdown (1Y) Largest decline over 1 year	-12.70%	-14.47%	+1.77%
Max Drawdown (3Y) Largest decline over 3 years	-16.04%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-26.34%	—	—
Current Drawdown Current decline from peak	-6.49%	-8.42%	+1.93%
Average Drawdown Average peak-to-trough decline	-8.77%	-2.53%	-6.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.63%	4.13%	-0.50%

Volatility

FDEM vs. FEMR - Volatility Comparison

The current volatility for Fidelity Emerging Markets Multifactor ETF (FDEM) is 8.88%, while Fidelity Enhanced Emerging Markets ETF (FEMR) has a volatility of 10.28%. This indicates that FDEM experiences smaller price fluctuations and is considered to be less risky than FEMR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDEM	FEMR	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.88%	10.28%	-1.40%
Volatility (6M) Calculated over the trailing 6-month period	18.76%	22.51%	-3.75%
Volatility (1Y) Calculated over the trailing 1-year period	20.50%	24.51%	-4.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.87%	23.00%	-6.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.28%	23.00%	-4.72%

FDEM vs. FEMR - Expense Ratio Comparison

FDEM has a 0.45% expense ratio, which is higher than FEMR's 0.38% expense ratio.

Dividends

FDEM vs. FEMR - Dividend Comparison

FDEM's dividend yield for the trailing twelve months is around 3.01%, more than FEMR's 1.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FDEM Fidelity Emerging Markets Multifactor ETF	3.01%	3.23%	4.05%	4.41%	3.95%	2.71%	1.84%	2.39%
FEMR Fidelity Enhanced Emerging Markets ETF	1.52%	1.92%	0.37%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FDEM and FEMR in my portfolio?

With a correlation of 0.90, FDEM and FEMR move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FDEM or FEMR?

FEMR has higher volatility (10.28%) compared to FDEM (8.88%). In terms of maximum drawdown, FDEM dropped -33.65% vs FEMR's -15.58%.

Which ETF is better, FDEM or FEMR?

On 1-year performance, FEMR leads with 46.18% vs 29.47% for FDEM. On fees, FEMR is cheaper at 0.38% per year. On volatility, FDEM has been the lower-risk option at 8.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDEM or FEMR?

Over the 1-year period, FEMR has performed better with a 46.18% return vs 29.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDEM or FEMR?

FEMR is cheaper with a 0.38% expense ratio, compared with 0.45% for FDEM.

Which ETF pays a higher dividend yield, FDEM or FEMR?

FDEM has the higher dividend yield at 3.01%, compared with 1.52% for FEMR.

What is the main difference between FDEM and FEMR?

FDEM is categorized as Emerging Markets Equities, while FEMR is Emerging Markets Diversified. Their fees differ too: 0.45% for FDEM and 0.38% for FEMR.

Which has better risk-adjusted returns?

FEMR currently has the higher Sharpe Ratio (1.89 vs 1.44), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.