Fidelity Emerging Market funds

[chang]

This screen picks up five Fidelity EM funds:

fundresearch.fidelity.com/fund-screener/results/table/overview/averageAnnualReturnsYear3/desc/1?assetClass=ISTK&category=EM&fidelityFundOnly=F&indexFundOnly=All&order=assetClass%2Ccategory%2CfidelityFundOnly%2CindexFundOnly

Over 1-3-5 years, FEDDX beats FEMKX. (Over 10 years, FEMKX edges out FEDDX.)

FEDDX is more expensive: 1.19% vs. 0.9%.

FEDDX has a significantly lower SD and higher Sharpe Ratio than FEMKX.

FEDDX is top 10% of M* category over 1-3-5-10 years. FEMKX isn't bad, not not as good as that. BUT NOTE that FEMKX is classic LCG in style. FEDDX is categorized as MCB.

Both funds have long-tenured managers. FEMKX's manager has > $1M invested in his fund. FEDDX's manager has much less ($100-500K) invested in his fund.

Looks like a no-brainer (FEDDX) to me .............. anyone else think so? On the other hand, if it's Reversion-To-The-Mean that one is looking for, then FEMKX is probably the better choice.

[Deleted]

I personally stopped believing in EM as category few years back. I now invest in international and global funds with low China exposure and let the manager decide if they want EM or not and how much

[racqueteer]

Ok, so I took a quick look at time slices of the two funds (below).  On the way down, FEMKX took the bigger beating.  On the way back, FEMKX bounced, but less strongly.  During the last month and a half, FEMKX finally outperformed FEDDX.

So, yes, FEDDX looks stronger, but I think I'd want to know why the funds acted as they did before trying to pick a winner.  In particular, how important is it that FEMKX is now the stronger of the two?

Attachments:

[keppelbay]

There doesn't seem to be a lot of juice in the active management here vs the index:

sorry can't figure out how to expand the image.

[chang]

Dec 24, 2023 12:08:11 GMT keppelbay said:

There doesn't seem to be a lot of juice in the active management here vs the index:

View Attachment

sorry can't figure out how to expand the image.

I think MCSI EAFE (all world ex US) isn't a good comparison to judge actively managed EM funds?

Here again is FEMKX and FEDDX, compared to VEU (all world ex US), VEA (developed world ex US), and VWO (emerging mkts). (Click to expand.)



Obviously, last 3 yrs EM has stunk; note VEA > VEU > VWO. Compared to VWO, however, FEMKX has been even worse, while FEDDX has stood out, even besting VEU and VEA.

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If you insert a picture by direct URL link, it will fill the page. However, if you attach from your computer, it will be like the one above, hence most people type "Click to expand".