2024-06-03 16:31:46 ET
Summary
- Fidelity Small-Mid Multifactor ETF offers a twist on market-cap weighted indexing with a multifactor, rules-based approach.
- The FSMD fund is well-diversified with nearly 600 holdings and attractive valuations.
- FSMD's emphasis on small- and mid-cap companies and its quality and momentum screens make it a potential outperformer with lower risk.
I’m not a fan of the term “smart beta” which is more of a marketing term than something that’s really descriptive. Having said that, I totally get and am a fan of factor-tilted portfolios to try to construct a different mix of holdings than what you can otherwise access in passive headline benchmarks. To that end, the Fidelity Small-Mid Multifactor ETF ( FSMD ) looks interesting in that it puts a twist on the basic market-cap weighted indexing approach....
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For further details see:
FSMD: It Works For SMMD