Non US – Equity fund seekers should consider taking a look at Fidelity Emerging Markets (FEMKX). FEMKX carries a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
FEMKX is classified in the Non US – Equity area by Zacks, and this segment is full of potential. Non US – Equity funds focus their investments on companies outside of the United States, which is an important distinction since global mutual funds tend to keep a sizable portion of their portfolio based in the United States. Most of these funds will allocate across emerging and developed markets, and can often extend across cap levels too.
History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FEMKX. The Fidelity Emerging Markets made its debut in November of 1990 and FEMKX has managed to accumulate roughly $6.60 billion in assets, as of the most recently available information. The fund is currently managed by John Dance who has been in charge of the fund since February of 2019.
Of course, investors look for strong performance in funds. This fund carries a 5-year annualized total return of 15.16%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 15.62%, which places it in the top third during this time-frame.
When looking at a fund’s performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Over the past three years, FEMKX’s standard deviation comes in at 18.68%, compared to the category average of 17.65%. Looking at the past 5 years, the fund’s standard deviation is 16.2% compared to the category average of 14.8%. This makes the fund more volatile than its peers over the past half-decade.
Investors should not forget about beta, an important way to measure a mutual fund’s risk compared to the market as a whole. FEMKX has a 5-year beta of 0.76, which means it is likely to be less volatile than the market average. Another factor to consider is alpha, as it reflects a portfolio’s performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. FEMKX has generated a positive alpha over the past five years of 2.15, demonstrating that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FEMKX is a no load fund. It has an expense ratio of 0.88% compared to the category average of 1.18%. From a cost perspective, FEMKX is actually cheaper than its peers.
This fund requires a minimum initial investment of $0, while there is no minimum for each subsequent investment.
Overall, Fidelity Emerging Markets ( FEMKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a good potential choice for investors right now.
Your research on the Non US – Equity segment doesn’t have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.