FESM: A Multi-Factor ETF Outperforming The Small-Cap Category
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Carlos R. Tartarini587 FollowersFollow5ShareSavePlay(19min)CommentsSummaryFidelity Enhanced Small Cap ETF (FESM) employs a multi-factor, growth-tilted strategy, consistently outperforming the Russell 2000 and peers over 3- and 5-year periods.FESM maintains overweight positions in technology, industrials, and healthcare, supporting higher growth versus benchmarks and peer funds.The ETF's higher volatility and downside capture reflect its cyclical sector exposures, favoring risk-on environments but presenting greater drawdown risk.FESM offers a compelling setup for investors seeking small-cap outperformance, though less suitable for those prioritizing income or defensive positioning. CalypsoArt/iStock via Getty Images The Fidelity Enhanced Small Cap ETF (FESM) is among the funds following multi-factor strategies for small-cap stocks, but with a growth tilt that has helped the fund beat the Russell 2000 and peers over theThis article was written byCarlos R. Tartarini587 FollowersFollowI am an individual investor. My main focus on investing is to achieve capital appreciation by selecting high value and compelling growth opportunities.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You