Emerging Markets Quality Income ETF: A High-Yield Investment Opportunity
A closer look at FEMQL, a high-yield ETF that tracks the performance of emerging markets dividend-paying companies.
The potential benefits and risks of investing in this ETF.
The Fidelity Emerging Markets Quality Income ETF (FEMQL) is an actively managed ETF that tracks the performance of high-dividend-paying companies in emerging markets. The ETF invests in approximately 100 large and mid-sized companies that meet certain quality criteria, such as strong financial performance and low debt levels.
FEMQL offers investors the potential for high income and capital appreciation. The ETF has a yield of over 5%, which is significantly higher than the yield of the MSCI Emerging Markets Index. The ETF has also outperformed the index in terms of total return over the past five years.
However, there are also some risks associated with investing in FEMQL. The ETF is concentrated in emerging markets, which are more volatile than developed markets. The ETF is also actively managed, which means that the portfolio manager's investment decisions could have a significant impact on the ETF's performance.
Overall, FEMQL is a high-yield ETF that offers investors the potential for high income and capital appreciation. However, investors should be aware of the risks associated with investing in emerging markets and actively managed ETFs before investing in the ETF.
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