Fidelity Enhanced Small Cap ETF
FESM
New York Stock Exchange Arca- -
USD
- -
- -
Capital Structure
FRC
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in mil. unless spec.Working Capital
FRC
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in mil. unless spec.Growth Rates
FRC
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in mil. unless spec.Quarterly Revenue
FRC
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in mil. unless spec.Quarterly Earnings Per Share
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in mil. unless spec.Quarterly Dividends Per Share
FRC
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in mil. unless spec.- Sector
- Financial Services
- Industry
- Asset Management
- Address
- 245 Summer Street Boston MA United States of America 2210
- IPO Date
- Nov 20, 2023
- Website
- digital.fidelity.com
- Similar Companies
- Business
- Fidelity Enhanced Small Cap ETF (FESM) is an exchange-traded fund that seeks to provide investment results corresponding to the performance of the Fidelity U.S. Enhanced Small Cap Index before fees and expenses. The fund employs a rules-based quantitative investment approach, investing at least 80% of its assets in securities included in the index, which consists of small-cap U.S. equity securities selected for their enhanced return potential through proprietary multi-factor models emphasizing value, quality, momentum, and low volatility factors; it also includes cash equivalents and derivatives such as futures and options for efficient portfolio management. FESM offers investors targeted exposure to the U.S. small-cap equity market segment with a focus on risk-adjusted outperformance relative to traditional small-cap benchmarks like the Russell 2000 Index. Launched in 2023 by Fidelity Management & Research Company LLC, a subsidiary of FMR LLC headquartered in Boston, Massachusetts, the ETF operates primarily in the United States with global accessibility through major stock exchanges. The fund targets long-term investors, including institutional portfolios and individual accounts seeking small-cap growth with downside protection, and maintains a non-diversified portfolio concentrated in financials, industrials, consumer discretionary, and information technology sectors. In late 2025, FESM underwent a strategic enhancement to its underlying index methodology, incorporating advanced machine learning algorithms for factor optimization amid rising market volatility; Fidelity also announced a distribution partnership expansion with leading robo-advisors and wirehouses to broaden retail access. These updates reflect Fidelity's ongoing commitment to innovative ETF structures, building on the firm's $5 trillion-plus in assets under administration.