US-based Fidelity expands its factor ETF offering with three new listings:
FidelityTargeted Emerging Markets Factor ETF (FDEM)
FidelityTargeted International Factor ETF (FDEV)
Fidelity Small-Mid Factor ETF (FSMD)
Fidelity is adding three new products to its Factor ETF range, offering exposure across developed and emerging markets as well as small to large-cap stocks.
FDEM & FDEV
FDEM and FDEV will track the Fidelity Targeted Emerging Markets Factor Index and the Fidelity Targeted International Factor Index, respectively. Both products will offer exposure to large and mid-cap companies with FDEM focusing on stocks within emerging markets and FDEV focusing on developed markets outside of the US.
To distinguish the difference between an emerging and developed market, Fidelity incorporates a quantitative and qualitative methodology using definitions from S&P Dow Jones. This factors in the market's development, GDP per capita and sovereign debt rating.
Listing on the Chicago board options exchange, FDEM will charge 0.45% and FDEV 0.39%.
Tracking the Fidelity Small-Mid Factor Index, FSMD is comprised of small and mid-cap companies domiciled in the US. Focusing on the smaller-cap companies, 500 companies are excluded from the broader index.
Also listing on the Cboe, the FSMD will charge a slightly cheaper 0.29%.