ETF Evaluator: First Eagle Small Cap Equity ETF () Follow This ETF

First Eagle Small Cap Equity ETF Overview

First Eagle Small Cap Equity ETF (FESC) is an actively managed U.S. Equity Small Value exchange-traded fund (ETF). First Eagle launched the ETF in 2026.

The investment seeks long-term growth of capital. Normally, the fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in the equity securities of U.S. small-cap companies.

About First Eagle Small Cap Equity ETF (FESC)

There are 3 members of the management team with an average tenure of 0.08 years: William Hench (2026), Suzanne Franks (2026) and Adam Mielnik (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

First Eagle Small Cap Equity ETF has 1 securities in its portfolio. The top 10 holdings constitute 0.0% 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.

First Eagle Small Cap Equity ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. First Eagle Small Cap Equity ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% 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). First Eagle Small Cap Equity ETF has 100.0% of the portfolio in cash.

Assets Under Management

The fund has $1 million in total assets, which is below the $2 billion average for the Small Value 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.

FESC 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 First Eagle Small Cap Equity ETF expense ratio is average compared to funds in the Small Value category. First Eagle Small Cap Equity ETF has an expense ratio of 0.55%, which is 15% higher than its category average, making the fund expense ratio grade a D. 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. First Eagle Small Cap Equity ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 60% for the Small Value category.

Recently, in the month of July 2026, First Eagle Small Cap Equity ETF returned -5.8%, which earned it a grade of F, as the Small Value category had an average return of 1.2%. 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.

First Eagle Small Cap Equity ETF has a trailing yield of 0.00%, which is below the 1.71% category average. The fund normally distributes its income annually and its capital gains annually.

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.

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