Loading…
Loading…
The Fund seeks to track the total return performance, before fees and expenses, of the Life + Liberty Freedom 100 Emerging Markets Index. The Fund invests, under normal circumstances, at least 80% of its assets in the component securities of the Index or in depositary receipts representing such component securities.
Is FRDM's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
I'm upgrading the Freedom 100 Emerging Markets ETF (FRDM) to a strong buy and taking a tactical position; EEM keeps its buy rating, as neither deserves a downgrade, but freedom is the worthwhile tilt here. FRDM's portfolio carries a lower trailing P/E, lower price/book, and significantly lower price/sales than EEM's, with nearly half its weight in firms below 15x trailing earnings. FRDM cuts China, India, the Arab Gulf monarchies, and Egypt, allocating that to Poland, Chile, Malaysia, and others, while still sharing TSMC, Samsung, and SK Hynix with EEM.
Freedom 100 Emerging Markets ETF is downgraded from Strong Buy to Buy after an ~85% rally driven by Korean memory and Taiwanese AI hardware exposure. FRDM's portfolio has become highly concentrated, with memory and AI hardware now comprising nearly half, reducing its emerging market diversification appeal. Valuation caution is warranted, but memory fundamentals remain strong through at least mid-2027, supporting continued constructive positioning.
South Korea ETFs are pulling back, but robust exports and rising AI spending could create a compelling long-term buying opportunity.
The Freedom 100 Emerging Markets ETF targets EM equities with high civil, political, and economic freedom scores, avoiding autocracies and state-owned enterprises. FRDM's portfolio is tech-heavy, with 55% concentrated in South Korea and Taiwan, and the top 10 holdings comprising 57% of assets. FRDM offers a 0.49% expense ratio, quarterly distributions, and trades at a 25-30% valuation discount to global markets, but exhibits high volatility and tracking error.
Three funds dominate the emerging markets ex-China conversation right now, and each one has put meaningful daylight between itself and the S&P 500 so far this year.