FQAL vs MFEM
Fidelity Quality Factor ETF vs PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
Quick Verdict
FQAL has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | FQAL | MFEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.49% | |
| AUM | $1.4B | $156M | |
| Dividend Yield | 1.15% | 2.39% | |
| Holdings | 130 | 701 | |
| YTD Return | +12.56% | +21.80% | |
| 1Y Return | +19.37% | +33.81% | |
| 3Y Return (annualized) | +20.54% | +20.43% | |
| 5Y Return (annualized) | +11.62% | +8.97% | |
| Volatility (annualized) | 15.0% | 17.7% | |
| Max Drawdown | -34.1% | -45.3% | |
| Fund Family | Fidelity Investments (US) | PIMCO (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2016 | Aug 31, 2017 |
FQAL vs MFEM Performance
Fidelity Quality Factor ETF (FQAL) is a ETF from Fidelity Investments (US) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US). Over the past year FQAL returned +19.37% while MFEM returned +33.81%. Year to date, FQAL is up 12.56% versus a gain of 21.80% for MFEM.
Over three years, FQAL compounded at +20.54% per year against +20.43% for MFEM; over five years the annualized figures are +11.62% and +8.97% respectively. Across the full 9-year window we track, FQAL has the edge at +13.76% annualized vs +6.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 15.0% for FQAL. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -34.1% for FQAL and -45.3% for MFEM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FQAL charges 0.15% per year while MFEM charges 0.49%. On a $10,000 position that is $15 vs $49 annually, a gap of $34 per year that compounds over a long holding period. On income, FQAL currently yields 1.15% against 2.39% for MFEM.
Holdings Overlap
FQAL and MFEM share 0 holdings out of 628 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FQAL or MFEM?
FQAL has an expense ratio of 0.15% while MFEM charges 0.49%. FQAL is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, FQAL or MFEM?
Over the past year FQAL returned +19.37% vs +33.81% for MFEM, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), FQAL annualized +13.76% vs +6.84% for MFEM. Past performance does not guarantee future results.
Which is riskier, FQAL or MFEM?
MFEM has been the more volatile fund at 17.7% annualized versus 15.0% for FQAL. Worst drawdown: FQAL -34.1% vs MFEM -45.3%.
Should I hold both FQAL and MFEM?
FQAL and MFEM have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FQAL and MFEM?
FQAL and MFEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 628 unique securities.
Which pays a higher dividend, FQAL or MFEM?
FQAL yields 1.15% while MFEM yields 2.39%, so MFEM currently pays the higher dividend yield.
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