FDEM vs FTHF

FDEMAFidelity Emerging Markets Multifactor ETF

FTHFDFirst Trust Emerging Markets Human Flourishing ETF

In short

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.

FTHF First Trust's emerging markets fund tracks a "human flourishing" index, layering profitability and quality screens onto roughly 100 EM stocks. No other fund in its peer group follows the same benchmark.

Stated mandate

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

FTHF The fund seeks to track the Emerging Markets Human Flourishing Index before fees and expenses and normally invests at least 80% of net assets in securities comprising that index.

Why people hold it

• 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

• FTHF A mandate nobody else runs: it is the only fund in its emerging markets multifactor peer group tracking the Emerging Markets Human Flourishing Index.ftportfolios.com
• The index screen is advertised on profitability and quality, so the basket leans toward EM companies that earn their keep rather than whoever has the biggest market cap.ftportfolios.com
• Rules-based and readable: roughly 100 stocks, with at least 80% of net assets normally in index constituents. You can see what you own and why.ftportfolios.com
• Distributions run on a quarterly schedule, the standard cadence for a diversified equity index fund.

Worth knowing

• 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%.

• FTHF The specialty index carries a specialty price: 0.75% a year, versus 0.26% at EMGF and 0.36% at AVES. You are paying up for the screen.
• Launched in 2023 and thinly traded, so the record is short and spreads can run wider than in the category's household-name funds.
• It is emerging markets equity, full stop: currency swings, local politics and single-country concentration ride along with the factor screen.

Full FDEM profile⁠

Full FTHF profile⁠