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.
FESM: A Multi-Factor ETF Outperforming The Small-Cap Category
FESM: A Multi-Factor ETF Outperforming The Small-Cap Category
FESM: Small-Cap ETF Outperforming The Benchmark
Fidelity Enhanced Small Cap ETF employs a proprietary multi-factor approach to select and weight nearly 600 U.S. small-cap stocks. FESM has consistently outperformed the Russell 2000, Russell 2000 Value, and Russell 2000 Growth indexes over the past decade. While FESM's recent returns are strong, RWJ and AVUV have more compelling track records.
Small-Cap Wins in Q3: Top-Performing ETFs in Focus
Small caps staged a comeback in Q3, with ETFs like FESM, RZV, FYX, VTWV, JSML, IWO topping gains. While there are certain tariff risks, the Fed's rate cut potential is a plus.
FESM: High-Beta SMID Portfolio With Worrisome Quality, Some Caution Is Needed
FESM is an actively managed ETF offering exposure to financials- and industrials-heavy basket of SMID stocks. There is minor exposure to large caps as well. Since the conversion to an ETF in November 2023, FESM has been on a tear for quite some time, so it even beat IVV over December 2023 to January 2025. Still, it has been remarkably sensitive to the recent market softness as it trailed IVV and peers like IJR and IWM in February.
ETF Flowdown: Off to the Races in 2025
One month into 2025, and ETFs are already off to the races, hauling in over $100 billion in net inflows in January. Hefty gains across the board reflect continued bullish sentiment on the stock market overall.
Don't Ignore Standout Small Caps in Active Small-Cap ETF FESM
2024 offered significant returns for investors, with the S&P 500 up 23.5% over the last year per YCharts data. Figuring out the right approach to 2025, then, looms as a key task for investors.
Rate Cuts Benefit These 2 Equity Categories
Interest rate cuts historically benefit equities, resulting in outperformance for the next year after the initial rate cut. Pockets of more pronounced opportunity may exist within stocks for investors in a declining rate environment.
3 ETFs to Harness Small-Cap Rebound Potential in Falling Rates
As the Federal Reserve turned its eye from inflation to protecting the labor market at August's Jackson Hole meeting, markets rose in hopes of rate cuts beginning at the end of the third quarter. A falling rate environment may prove particularly supportive for small-cap stocks.
FESM: Not Impressed With This Enhanced Small Cap Blend ETF
FESM recently reorganized into an ETF with a 0.28% expense ratio, but this enhanced small-cap fund has an extensive track record dating back to December 2007. This analysis reveals returns that were better than Russell 2000 Index ETFs like IWM but worse than S&P SmallCap 600 Index ETFs like SPSM. The strategy supposedly improves the quality of the Russell 2000 Index, but I found the improvements negligible. However, its value and growth features are impressive, albeit could be temporary.
