Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMichael WilliamsMon, June 8, 2026 at 7:30 PM GMT+2 6 min readQuick ReadFFEM touched 30% YTD in May, with TSMC, Samsung, and SK Hynix making up 24% of the fund and driving its AI-fueled run.FFEM's 22% YTD return nearly triples SPY's 8% gain, yet retail investors and Reddit have barely discovered the fund exists.Three conditions must hold for gains to continue: AI capex staying strong, the dollar weakening further, and Chinese tech escaping renewed regulatory pressure.It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor)$10,000 parked in the Fidelity Fundamental Emerging Markets ETF (NYSEARCA:FFEM) on the last trading day of 2025 was worth roughly $13,000 at the late-May peak near $43.45, before a recent week of selling trimmed it back to about $12,200 by the June 5 close at $40.73. That puts the headline number where it should be. FFEM brushed up against a 30% year-to-date gain in late May and is sitting on a 22% YTD return after the pullback. Over the trailing twelve months the fund is up 52%.The S&P 500 over the same YTD window? The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 8% year-to-date and 24% over the past year. FFEM has nearly tripled the broad U.S. market's YTD return while almost nobody is talking about it. The Reddit chatter is essentially zero. The fund still sits in that quiet stretch of the Fidelity lineup where retail flows haven't found it yet.FFEM is an actively managed emerging markets fund, charging 60 basis points a year. The active part matters here because the fund's top holdings are concentrated in exactly the names that have done the work in 2026. The top ten positions account for 43% of net assets, so a small group of stocks is driving the bus.The biggest single bet is Taiwan Semiconductor at 14% of the portfolio, which is roughly a full position size on its own. Stack on Samsung Electronics at about 7% and SK Hynix at 3%, and the three semiconductor names alone make up about 24% of the fund. That is a deliberate concentration on the AI capex supply chain, parked inside an EM wrapper. When the AI buildout ran hot through the first half of 2026, FFEM caught it.The second engine is Chinese internet and consumer tech. Tencent (about 7%), Alibaba (about 3%), and PDD Holdings (about 2%) together carry roughly an eighth of the portfolio. These were the names that spent years being de-rated by U.S. investors who simply wouldn't own them, and they are the ones that snapped back hardest once the dollar weakened and global allocators began rotating out of the most concentrated U.S. positions. CATL at about 2% rounds out the China tech sleeve via the EV battery supply chain.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info