Diversifying Abroad? Don't Ignore Emerging Markets Upside

Group 1 - The year 2025 is expected to be particularly uncertain for markets due to unpredictable U.S. policy changes, leading to increased investor interest in foreign equities and diversification [1] - Emerging markets are highlighted as potential growth areas, especially as investors may have been underweight in this category due to previous hesitations regarding China [2][3] - India is noted for its strong economic growth potential, supported by an educated workforce and growth in technology sectors, making it an attractive option within emerging markets [3] Group 2 - Emerging markets ETFs, such as the Fidelity Enhanced Emerging Markets ETF (FEMR) and the Fidelity Emerging Markets Multifactor ETF (FDEM), offer investors exposure to this sector [4][5] - FEMR has achieved over 20% year-to-date returns with a fee of 38 basis points, focusing on factors like valuation, growth, and quality [4] - FDEM, with a 27 basis point fee, has returned 17.5% year-to-date by employing a multifactor index approach that emphasizes lower volatility and positive momentum [5]