Fidelity’s FFEM Active ETF Targets EM Tech, Semiconductors

Fidelity’s Fundamental Emerging Markets ETF (FFEM) is an actively managed exchange-traded fund that invests in emerging-market equities with a focus on technology and semiconductor companies.

The fund relies on Fidelity’s fundamental equity research team to select stocks based on company fundamentals and macroeconomic factors rather than following a market-cap-weighted index.

Under its active mandate, portfolio managers can change country and sector exposures to limit large concentrations that can occur in standard cap-weighted emerging-market benchmarks.

FFEM’s holdings include major semiconductor manufacturers and related technology firms such as Taiwan Semiconductor Manufacturing Co., Samsung Electronics and SK Hynix, giving investors exposure to corporate capital expenditure in semiconductor production and infrastructure that supports artificial intelligence.

Because the fund does not replicate a passive index, it can exhibit higher active share and greater sector concentration than typical passive emerging-market ETFs; those structural differences can affect the fund’s risk and return profile.

Articles about FFEM were authored by VettaFi LLC. Fidelity Investments is an independent company and is not affiliated with VettaFi. The information describes the fund’s stated strategy and typical holdings and does not constitute investment advice.