Any investors hoping to find a Mutual Fund Equity Report fund could think about starting with Fidelity Emerging Markets (
FEMKX Quick Quote FEMKX - Free Report) . FEMKX carries a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance. History of Fund/Manager
Fidelity is based in Boston, MA, and is the manager of FEMKX. Fidelity Emerging Markets made its debut in November of 1990, and since then, FEMKX has accumulated about $3.99 billion in assets, per the most up-to-date date available. The fund is currently managed by John Dance who has been in charge of the fund since February of 2019.
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund in particular has delivered a 5-year annualized total return of 4.75%, and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 4.38%, which places it in the top third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FEMKX over the past three years is 18.1% compared to the category average of 17.75%. Over the past 5 years, the standard deviation of the fund is 16.92% compared to the category average of 15.92%. This makes the fund more volatile than its peers over the past half-decade.
Investors should note that the fund has a 5-year beta of 0.75, so it is likely going to be less volatile than the market at large. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. FEMKX has generated a negative alpha over the past five years of -4.25, demonstrating that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, FEMKX is a no load fund. It has an expense ratio of 0.89% compared to the category average of 1.15%. From a cost perspective, FEMKX is actually cheaper than its peers.
Investors should also note that the minimum initial investment for the product is $0 and that each subsequent investment has no minimum amount.
Overall, Fidelity Emerging Markets ( FEMKX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, Fidelity Emerging Markets ( FEMKX ) looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Equity Report, make sure to go to
www.zacks.com/funds/mutual-funds for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.