FDEM vs JHEM

FDEMAFidelity Emerging Markets Multifactor ETF

JHEMCJohn Hancock Multifactor Emerging Markets 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.

JHEM Dimensional designs the index, John Hancock wraps it in an ETF: roughly 900 emerging-market stocks, sorted country by country toward cheaper, more profitable, smaller companies. Fee is 0.49%, net of a waiver through July 31, 2027.

Stated mandate

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

JHEM The fund seeks, before fees and expenses, investment results that closely correspond to the performance of the John Hancock Dimensional Emerging Markets 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

• JHEM Dimensional Fund Advisors builds and maintains the index, classifying stocks country by country on market cap, relative price and profitability.sec.gov
• Wide net: roughly 900 names drawn from the top 80% of each eligible country's market cap, with frontier markets allowed in.sec.gov
• 0.49% net of a waiver through July 31, 2027 (0.58% before it) lands near the category median fee.
• Running since 2018 on the same Dimensional index, so there is a real multi-year record behind the rules.

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%.

• JHEM Cheaper routes to emerging-market factors exist: EMGF charges 0.26% and FDEM 0.25%, neither under a waiver.
• Dimensional sells the value tilt directly now, via DFEV at 0.43% net of a waiver through February 28, 2027.
• Distributions come once or twice a year, not quarterly, and the frontier-market allowance can pull in thinner markets.sec.gov

Full FDEM profile⁠

Full JHEM profile⁠