FFEM surged 22% year-to-date, nearly tripling the S&P 500’s 8% return, driven by AI-linked stocks like TSMC and Samsung.
The Fidelity Fundamental Emerging Markets ETF (FFEM) posted a 22% year-to-date gain, nearly triple the S&P 500’s 8% return, as of the June 5 close. The fund’s rally was fueled by heavy exposure to AI-driven stocks, including TSMC, Samsung, and SK Hynix, which make up 24% of its holdings.
FFEM’s 52% trailing twelve-month return also dwarfed the SPDR S&P 500 ETF Trust’s (SPY) 24% gain over the same period. Despite its outperformance, the fund remains under the radar, with minimal retail investor attention or Reddit chatter. The actively managed ETF charges 60 basis points annually.
After peaking near $43.45 in late May, FFEM pulled back to $40.73 by June 5, trimming its value from $13,000 to $12,200 for a $10,000 investment made at the end of 2023. Sustained gains depend on continued AI capital expenditure, a weaker dollar, and avoiding renewed Chinese regulatory pressure.