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FESM - ETF AI Analysis
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Fidelity Enhanced Small Cap ETF (FESM)
Rating:65Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Leading Holdings Performing Well
Several of the top positions, such as Bloom Energy and Hecla Mining, have delivered strong year-to-date results that support the fund’s overall performance.
Broad Sector Diversification
Holdings spread across many sectors, including technology, industrials, health care, and financials, help reduce the impact of weakness in any single industry.
Negative Factors
High U.S. Market Concentration
With the vast majority of assets in U.S. stocks, the fund is heavily tied to the performance of the U.S. market and offers very limited international diversification.
Small-Cap Volatility Risk
Because the ETF focuses on small-cap companies, investors should expect more price swings and sensitivity to economic changes than with large-cap funds.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for an ETF, which slightly reduces the net return investors keep over time.
FESM vs. SPDR S&P 500 ETF (SPY)
AUM4.07B
RegionNorth America
Expense Ratio0.28%
Beta1.12
IssuerFidelity
Inception DateNov 20, 2023
Dividend Yield0.8%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume560,552
30 Day Avg. Volume642,563
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
49.51Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering602
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FESM Summary
The Fidelity Enhanced Small Cap ETF (FESM) invests mainly in smaller U.S. companies across many sectors, including technology, industrials, and health care. It does not track a set index, but instead uses research to pick individual small-cap stocks it believes have strong growth potential. Well-known names in the fund include Bloom Energy and Hecla Mining. Someone might consider this ETF to seek higher long-term growth and to diversify beyond large, well-known companies. A key risk is that small-cap stocks can be very volatile, so the ETF’s value can rise and fall more sharply than the overall market.
How much will it cost me?The Fidelity Enhanced Small Cap ETF (FESM) has an expense ratio of 0.28%, which means you’ll pay $2.80 per year for every $1,000 invested. This cost is slightly higher than average for ETFs because it uses an actively managed strategy to select small-cap stocks with strong growth potential. Active management typically involves more research and decision-making, which can increase costs.
What would affect this ETF?The Fidelity Enhanced Small Cap ETF (FESM) could benefit from economic growth and innovation in sectors like technology and health care, which make up a significant portion of its holdings. However, small-cap stocks are often more sensitive to economic downturns, interest rate hikes, and market volatility, which could negatively impact the ETF's performance. Additionally, its focus on U.S.-based companies means it may be affected by domestic regulatory changes or shifts in consumer demand.
FESM Top 10 Holdings
FESM is leaning into U.S. small caps with a tilt toward tech, industrials, and health care, and its story right now is one of a few standouts pulling extra weight. Fabrinet has been a clear bright spot, rising steadily and giving the tech sleeve some real punch, while Bloom Energy’s strong run has added a bit of spark on the clean-tech side. Coeur Mining and Hecla Mining have also been climbing, helping from the materials pocket. On the flip side, Credo Technology and HealthEquity are lagging, acting like small anchors on an otherwise nimble portfolio.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Bloom Energy | 1.50% | $61.22M | $42.45B | 497.66% | 62 Neutral | |
| Fabrinet | 1.15% | $46.94M | $18.90B | 160.47% | 78 Outperform | |
| Credo Technology Group Holding Ltd | 0.98% | $40.03M | $21.39B | 151.33% | 77 Outperform | |
| Coeur Mining | 0.97% | $39.53M | $14.58B | 341.32% | 69 Neutral | |
| Hecla Mining Company | 0.84% | $34.04M | $14.13B | 295.92% | 74 Outperform | |
| Guardant Health | 0.81% | $32.76M | $11.96B | 154.46% | 61 Neutral | |
| Commercial Metals Company | 0.72% | $29.29M | $7.30B | 50.81% | 70 Neutral | |
| Healthequity | 0.70% | $28.65M | $6.84B | -17.06% | 76 Outperform | |
| Phillips Edison & Company | 0.69% | $28.06M | $5.35B | 7.68% | 75 Outperform | |
| EnerSys | 0.68% | $27.73M | $5.96B | 55.48% | 79 Outperform |
FESM Technical Analysis
Neutral
―
Price Trends
39.73
Negative
38.49
Positive
36.01
Positive
Market Momentum
-0.19
Positive
40.87
Neutral
25.94
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FESM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 39.97, equal to the 50-day MA of 39.73, and equal to the 200-day MA of 36.01, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 25.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FESM.
FESM Peer Comparison
Comparison Results
Performance Comparison
FESM
Fidelity Enhanced Small Cap ETF
38.67
9.47
32.43%
QQQI
NEOS Nasdaq 100 High Income ETF
―
―
―
DFSV
Dimensional US Small Cap Value ETF
―
―
―
AVSC
Avantis U.S Small Cap Equity ETF
―
―
―
BSVO
EA Bridgeway Omni Small-Cap Value ETF
―
―
―
PSC
Principal U.S. Small-Cap Multi-Factor ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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