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FSMD - ETF AI Analysis

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FSMD

Fidelity Small-Mid Multifactor ETF (FSMD)

Rating:71Outperform
Price Target:
FSMD’s rating suggests it is a solid but not outstanding small- and mid-cap ETF, supported by several strong companies with healthy financial performance and growth prospects. Standout holdings like Comfort Systems USA and TechnipFMC boost the fund’s quality through robust revenue growth, efficient cash flow, and positive earnings sentiment, while names such as SanDisk and Casey’s General Stores add some drag due to operational, valuation, and technical concerns. The main risk factor is that many top holdings face valuation and technical risks (like overbought or bearish signals), which could increase volatility for investors.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, suggesting its strategy has been working in the current market.
Low Expense Ratio
The fund’s relatively low annual fee means more of any returns stay in investors’ pockets instead of going to costs.
Broad Sector Diversification
Holdings spread across many sectors, including industrials, technology, financials, and health care, help reduce the impact if one industry struggles.
Negative Factors
Heavy U.S. Concentration
With almost all assets in U.S. companies, the fund offers little protection if the U.S. market faces a downturn.
Small Individual Position Sizes
Each top holding makes up only a small slice of the portfolio, which can limit the impact of even strong-performing stocks on overall returns.
Exposure to Cyclical Sectors
Significant weights in economically sensitive areas like industrials, consumer cyclical, and financials may make the fund more vulnerable during economic slowdowns.

FSMD vs. SPDR S&P 500 ETF (SPY)

FSMD Summary

FSMD, the Fidelity Small-Mid Multifactor ETF, tracks the Fidelity Small-Mid Multifactor Index and focuses on smaller and mid-sized U.S. companies across many sectors, including industrials, technology, and financials. It holds well-known names like SanDisk and Ciena, giving investors a way to spread their money across many growing businesses that are often missed by large‑cap funds. Someone might invest in FSMD to seek long-term growth and diversification beyond the biggest household-name stocks. A key risk is that small and mid-sized company shares can be more volatile and can go up and down more sharply than the overall market.
How much will it cost me?The Fidelity Small-Mid Multifactor ETF (FSMD) has an expense ratio of 0.16%, which means you’ll pay $1.60 per year for every $1,000 invested. This is lower than average for ETFs because it is passively managed, focusing on tracking an index rather than actively selecting stocks.
What would affect this ETF?The Fidelity Small-Mid Multifactor ETF (FSMD) could benefit from economic growth in the U.S., particularly if small and mid-sized companies in sectors like Industrials, Technology, and Consumer Cyclical continue to innovate and expand. However, rising interest rates or economic slowdowns could negatively impact these smaller companies, especially in sectors like Financials and Real Estate, which are sensitive to borrowing costs and market conditions.

FSMD Top 10 Holdings

FSMD’s story is driven by a pack of rising small- and mid-cap U.S. names, with a clear tilt toward industrials and tech. SanDisk, Ciena, Lumentum, and Coherent are giving the fund a lift as demand tied to data centers, cloud, and communications keeps their momentum intact, even if rich valuations add a bit of wobble. On the industrial side, Comfort Systems and EMCOR are steady workhorses, while Casey’s General Stores and Flex quietly support returns. Overall, performance is broad-based rather than hinging on a single star.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
SanDisk Corp1.95%$45.98M$146.11B3216.39%
55
Neutral
Ciena1.11%$26.07M$73.64B661.64%
70
Outperform
Lumentum Holdings0.95%$22.38M$62.95B1330.89%
61
Neutral
Comfort Systems0.90%$21.10M$60.76B354.88%
80
Outperform
Coherent Corp0.80%$18.88M$65.63B396.11%
66
Neutral
Anglogold Ashanti PLC0.62%$14.72M$50.15B138.19%
73
Outperform
EMCOR Group0.59%$13.86M$38.74B115.82%
73
Outperform
Flex0.54%$12.81M$33.61B156.71%
74
Outperform
Casey's General0.51%$12.08M$29.55B77.11%
68
Neutral
TechnipFMC0.51%$12.08M$29.91B161.56%
80
Outperform

FSMD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
46.37
Positive
100DMA
45.99
Positive
200DMA
44.48
Positive
Market Momentum
MACD
0.78
Positive
RSI
61.99
Neutral
STOCH
76.17
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSMD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 48.08, equal to the 50-day MA of 46.37, and equal to the 200-day MA of 44.48, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 76.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSMD.

FSMD Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.37B0.15%
71
Outperform
$2.85B0.34%
66
Neutral
$2.66B0.24%
69
Neutral
$2.34B0.51%
68
Neutral
$1.91B0.55%
69
Neutral
$1.56B0.29%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSMD
Fidelity Small-Mid Multifactor ETF
48.80
10.18
26.36%
PRFZ
Invesco FTSE RAFI US 1500 Small-Mid ETF
JMEE
JPMorgan Market Expansion Enhanced Equity ETF
CGMM
Capital Group U.S. Small and Mid Cap ETF
TMSL
T. Rowe Price Small-Mid Cap ETF
USVM
VictoryShares USAA MSCI USA Small Cap Value Momentum ETF
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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