ETF Evaluator: Fidelity Small-Mid Multifactor ETF (FSMD) Follow This ETF

Fidelity Small-Mid Multifactor ETF Overview

Fidelity Small-Mid Multifactor ETF (FSMD) is a passively managed U.S. Equity Small Blend exchange-traded fund (ETF). Fidelity Investments launched the ETF in 2019.

The investment seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the Fidelity Small-Mid Multifactor Index℠. The fund normally invests at least 80% of its assets in securities included in the Fidelity Small-Mid Multifactor Index℠, which is designed to reflect the performance of stocks of small- and mid-capitalization U.S. companies with attractive valuations, high quality profiles, positive momentum signals, and lower volatility than the broader market, as represented by the Fidelity U.S. Extended Investable Market Index℠.

About Fidelity Small-Mid Multifactor ETF (FSMD)

There are 5 members of the management team with an average tenure of 7.26 years: Louis Bottari (2019), Payal Gupta (2019), Peter Matthew (2019), Navid Sohrabi (2019) and Robert Regan (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: DJ US Total Stock Market TR USD index with a weighting of 100% and Fidelity Small-Mid Multifactor TR USD index with a weighting of 100%. Fidelity Small-Mid Multifactor ETF has 596 securities in its portfolio. The top 10 holdings constitute 8.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Fidelity Small-Mid Multifactor ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Fidelity Small-Mid Multifactor ETF has 2.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 97.7% There is 2.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Fidelity Small-Mid Multifactor ETF has 1.0% of the portfolio in cash.

Assets Under Management

The fund has $2 billion in total assets, which is below the $4 billion average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FSMD Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Fidelity Small-Mid Multifactor ETF expense ratio is low compared to funds in the Small Blend category. Fidelity Small-Mid Multifactor ETF has an expense ratio of 0.15%, which is 65% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Fidelity Small-Mid Multifactor ETF has a portfolio turnover rate of 38%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 50% for the Small Blend category.

Recently, in the month of July 2026, Fidelity Small-Mid Multifactor ETF returned -4.2%, which earned it a grade of F, as the Small Blend category had an average return of -2.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Fidelity Small-Mid Multifactor ETF has a trailing yield of 1.25%, which is above the 1.17% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Fidelity Small-Mid Multifactor ETF Grades

Year to date, the ETF has returned 15.8%, 2.2 percentage points worse than the category, which translates into a grade of D. The fund has returned 22.8% over the past year (grade of F), 15.0% over the past three years (grade of B) and 9.9% per year over the past five years (grade of A).

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