Is Fidelity Emerging Markets K (FKEMX) a Strong Mutual Fund Pick Right Now?

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If you’ve been stuck searching for Non US – Equity funds, consider Fidelity Emerging Markets K (FKEMX) as a possibility. FKEMX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Load Error

Objective

We classify FKEMX in the Non US – Equity category, which is an area rife with potential choices. Investing in companies outside the United States is how Non US – Equity funds set themselves apart, since global funds tend to keep a good portion of their portfolio stateside. Many of these funds like to allocate across emerging and developed markets, and will often focus on all cap levels.

History of Fund/Manager

FKEMX is a part of the Fidelity family of funds, a company based out of Boston, MA. The Fidelity Emerging Markets K made its debut in May of 2008 and FKEMX has managed to accumulate roughly $1.61 billion in assets, as of the most recently available information. The fund’s current manager, John Dance, has been in charge of the fund since February of 2019.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 14.72%, 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 17.79%, 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, FKEMX’s standard deviation comes in at 18.63%, compared to the category average of 17.69%. The fund’s standard deviation over the past 5 years is 16.35% compared to the category average of 14.92%. This makes the fund more volatile than its peers over the past half-decade.

Risk Factors

With a 5-year beta of 0.77, the fund is likely to be less volatile than the market average. Alpha is an additional metric to take into consideration, since it represents a portfolio’s performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. The fund has produced a positive alpha over the past 5 years of 2, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, FKEMX is a no load fund. It has an expense ratio of 0.77% compared to the category average of 1.18%. FKEMX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $0; each subsequent investment has no minimum amount.

Bottom Line

Overall, Fidelity Emerging Markets K ( FKEMX ) 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.

Don’t stop here for your research on Non US – Equity funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare FKEMX to its peers as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.

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