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 so far this year and in the last month, indicating positive recent momentum.
Leading Small-Cap Winners in Top Holdings
Several of the largest positions, such as Bloom Energy, Vicor, and Fabrinet, have delivered strong year-to-date results, helping drive the fund’s returns.
Broad Sector Diversification
Holdings spread across technology, industrials, health care, financials, and other sectors help reduce the impact of weakness in any single industry.
Negative Factors
Heavy U.S. Concentration
With the vast majority of assets in U.S. stocks and very little abroad, the fund is highly tied to the U.S. market’s fortunes.
Exposure to Underperforming Names
Some top holdings like Guardant Health and Commercial Metals have shown weak year-to-date performance, which can drag on overall returns.
Moderate Expense Ratio
The fund’s fee is not especially high but is above the cheapest index ETFs, slightly reducing net returns over time.
FESM vs. SPDR S&P 500 ETF (SPY)
AUM5.18B
RegionNorth America
Expense Ratio0.28%
Beta1.10
IssuerFidelity
Inception DateNov 20, 2023
Dividend Yield0.54%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume555,342
30 Day Avg. Volume670,416
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
55.55Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering699
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
FESM Summary
The Fidelity Enhanced Small Cap ETF (FESM) focuses on smaller U.S. companies and does not track a set index; instead, managers actively pick stocks. It spreads investments across many areas of the economy, with larger weights in technology, industrials, and health care. Well-known names in the fund include Bloom Energy and Lumen Technologies. Someone might invest in this ETF to seek long-term growth and diversify beyond large, familiar companies. However, small-company stocks can be more volatile, so the value of this ETF can go up and down 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-cap growth stories, with a clear tilt toward tech and industrial names that give the fund a more adventurous feel than a plain-vanilla small-cap index. Bloom Energy and MaxLinear have been rising sharply, acting like twin engines for recent performance, while Credo Technology and Vicor add steady tech momentum. On the flip side, Fabrinet has been more mixed and Commercial Metals is losing a bit of steam, modestly tugging on returns. Overall, the fund’s story is a U.S.-centric bet on innovative, higher-volatility small caps.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Bloom Energy | 2.34% | $125.25M | $74.98B | 1083.25% | 62 Neutral | |
| Credo Technology Group Holding Ltd | 1.23% | $65.95M | $38.16B | 183.57% | 77 Outperform | |
| Fabrinet | 1.23% | $65.85M | $22.26B | 167.88% | 78 Outperform | |
| Guardant Health | 1.03% | $55.17M | $16.66B | 153.60% | 61 Neutral | |
| EnerSys | 0.78% | $41.89M | $8.29B | 159.01% | 79 Outperform | |
| Commercial Metals Company | 0.76% | $40.80M | $8.22B | 45.19% | 70 Neutral | |
| Lumen Technologies | 0.75% | $40.38M | $9.18B | 114.52% | 55 Neutral | |
| Maxlinear | 0.73% | $38.89M | $7.25B | 530.13% | 60 Neutral | |
| Kulicke & Soffa | 0.70% | $37.64M | $5.14B | 200.06% | 61 Neutral | |
| ACM Research | 0.68% | $36.64M | $5.27B | 204.92% | 72 Outperform |
FESM Technical Analysis
Positive
―
Price Trends
42.90
Positive
41.13
Positive
39.05
Positive
Market Momentum
0.57
Positive
54.83
Neutral
32.08
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FESM, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 44.72, equal to the 50-day MA of 42.90, and equal to the 200-day MA of 39.05, indicating a bullish trend. The MACD of 0.57 indicates Positive momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 32.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FESM.
FESM Peer Comparison
Comparison Results
Performance Comparison
FESM
Fidelity Enhanced Small Cap ETF
44.94
13.72
43.95%
FELC
Fidelity Enhanced Large Cap Core ETF
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DFSV
Dimensional US Small Cap Value ETF
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AVSC
Avantis U.S Small Cap Equity ETF
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BSVO
EA Bridgeway Omni Small-Cap Value ETF
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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.
DisclaimerThis 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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