The Fidelity Global Emerging Markets Fund (Managed Fund) ETF (ASX: FEMX) could be one to watch in March and in this short article, we’ll run through arguably the three most important factors to consider when you’re reviewing an ASX ETF.
What the Fidelity FEMX ETF actually does
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 meets our minimum FUM criteria
The Fidelity FEMX ETF had $166.36 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.
Don’t forget FEMX’s fees
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 0.5% or around $10.00 per $2,000 invested. Keep in mind, small changes in fees can make a big difference after 10 or 20 years.
What to do next
If you’re weighing up investing in the FEMX ETF, keep in mind that this is just a brief introduction. Indeed, before doing anything, take a look at our free Fidelity FEMX report. And while you’re at it, consider searching our complete list of ASX ETFs for similar ETFs in the International shares sector to compare your options.