EQLT vs FDEM

EQLTCiShares MSCI Emerging Markets Quality Factor ETF

FDEMAFidelity Emerging Markets Multifactor ETF

In short

EQLT Most emerging-market factor funds blend several signals together. EQLT picks one and commits: quality. It tracks an MSCI index of roughly 300 large- and mid-cap EM companies screened for high profitability, low debt and steady earnings, for 0.35% a year.

FDEM Value, quality, momentum and low-volatility screens run across emerging markets stocks, plus an unusual extra filter: a tilt toward names less correlated with US equities. Fidelity's in-house index, priced under the category median.

Stated mandate

EQLT The fund seeks to track an index of large- and mid-cap emerging-market stocks selected for high profitability, low leverage, and earnings consistency.

FDEM The fund seeks to track, before fees and expenses, the Fidelity Emerging Markets Multifactor Index.

Why people hold it

• EQLT Charges 0.35% a year, under the median expense ratio for emerging-market factor funds in its peer group.
• One factor, clearly defined: the MSCI Emerging Markets Quality Factor Select Index screens for high profitability, low leverage and earnings consistency. No black-box blending of competing signals.ishares.com
• Roughly 300 holdings across emerging markets, so the quality screen still leaves a broad spread of names rather than a concentrated bet.
• Priced below multifactor EM rivals like JPMorgan's JPEM and Hartford's ROAM, both at 0.44%.

• FDEM Four factor screens (value, quality, momentum, lower volatility) and then a twist most multifactor rivals skip: the index also leans toward stocks with lower correlation to the US market.sec.gov
• At 0.25% a year, it undercuts the typical fund in the international multifactor group, where the median sits at 0.38%.
• Rules over hunches: normally at least 80% of assets sit in index securities, so the screens drive the portfolio. Live since 2019, with distributions paid quarterly.sec.gov

Worth knowing

• EQLT Small asset base and thin trading volume. Spreads can run wider than in the giants of the emerging-market shelf, which matters most on larger orders.
• Launched in 2024, so there is no long live record to judge how the screen holds up across a full emerging-market cycle.
• A quality tilt is a deliberate deviation from the broad EM index. Rallies led by cheap, cyclical or heavily levered companies are the ones this screen filters out.

• FDEM Selective by design: a couple hundred large- and mid-cap names, not the full emerging markets universe, so results diverge from plain market-cap EM index funds.sec.gov
• Emerging markets carry currency, political and regulatory risk. A low-volatility screen aims to soften the ride relative to the broad EM market, not to remove the risk.sec.gov
• Volume is moderate rather than heavy for the category, so spreads deserve a look on larger orders. The developed-market sibling FDEV runs cheaper at 0.18%.

Full EQLT profile⁠

Full FDEM profile⁠