Summary
FESM Chart
FESM: Active Small-Cap ETF With Superior Returns And Low Fees
Fidelity Enhanced Small Cap Core ETF is an actively managed small-cap fund aiming to outperform the Russell 2000 using a multi-factor approach. FESM has consistently outperformed the Russell 2000, Russell 2000 Value, and Russell 2000 Growth indexes over 10 years. While FESM leads key competitors over 3 years, it slightly trails AVUV over 5 years and RWJ over 10 years.
VIDEO: ETF of the Week: FESM
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Fidelity Enhanced Small Cap ETF (FESM) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.
ETF of the Week: Fidelity Enhanced Small Cap ETF (FESM)
VettaFi's Head of Research Todd Rosenbluth discussed the Fidelity Enhanced Small Cap ETF (FESM) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the ETF Investing Content Hub.
Fidelity Enhanced Small Cap ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 25,538 | $849,567.35 | $1.21M | $363,998.41 | 42.85% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 40,253 | $1.24M | $1.9M | $667,292.22 | 53.91% |
| GP Gustave Pollak Vantagepoint Investment Advisers LLC | 1.4M | $51.36M | $66.75M | $15.39M | 29.96% |
| LJB Laura J. Bornheimer GWN SECURITIES Inc. | 23,392 | $758,754.3 | $1.11M | $348,389.06 | 45.92% |
 Jeff Ameen Spire Wealth Management | 22,424 | $781,032.39 | $1.06M | $280,295.53 | 35.89% |
Fidelity Enhanced Small Cap ETF (FESM) FAQ
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Fidelity Enhanced Small Cap ETF Profile
| ARCA Exchange | US Country |
Overview
FESM is an actively managed Exchange-Traded Fund (ETF) that focuses on capital appreciation through investments primarily in the Russell 2000 Index, which is known for representing the small-cap sector of the U.S. equity market. This ETF employs a unique investment approach by utilizing a quantitative analysis method. This method involves computer-aided analysis to evaluate factors such as historical valuation, growth, profitability, and other significant metrics. FESM aims to offer a total return that exceeds that of its benchmark index. Furthermore, the fund has adopted securities lending as a part of its strategy to generate income.
Initially established as the Fidelity Small Cap Enhanced Index Fund, a mutual fund, FESM transitioned to an actively managed ETF format with a strong foundation of $435 million in net assets. This strategic shift signifies FESM's commitment to providing investors with a diverse and flexible investment vehicle that aligns with modern financial market dynamics. The fund’s focus on small-cap stocks, including the potential for foreign stock investments, positions it as a potentially robust option for investors looking for growth and diversification in their portfolios.
Products and Services
- Capital Appreciation through the Russell 2000 Index
- Quantitative Analysis Investment Strategy
- Securities Lending Income Generation
This product targets common stocks within the Russell 2000 Index, aiming for capital growth by investing in the small-cap sector of the U.S. equity market. The focus on this specific market segment offers investors exposure to the potential high growth of small-cap companies, which can be pivotal for a diversified investment strategy.
FESM utilizes a computer-aided, quantitative analysis approach to select investments. By analyzing historical data on valuation, growth, profitability, and other crucial factors, the fund seeks to identify stocks that are likely to outperform their peers. This methodical approach contributes to a disciplined investment process, aiming to mitigate risk and capitalize on opportunities.
In addition to its main strategy of capital appreciation, FESM engages in securities lending, which is a mechanism to generate additional income. Securities lending involves lending out stocks or bonds from the fund's portfolio to other institutions or traders, in return for a fee. This practice is common among funds looking to enhance their returns and make productive use of their holdings.
