Business News and Headlines

FFSM: Sensible SMID Strategy, Competitive Returns, Worth Shotlisting

Fidelity Fundamental Small‑Mid Cap ETF (FFSM) is an actively managed, non‑transparent fund that combines quantitative screening with fundamental research. Since its 2024 strategy shift, FFSM has outperformed the S&P 500 and several SMID peers such as IJH and SMMD, driven by stronger growth, GARP, and momentum exposures. However, the fund exhibits a deep maximum drawdown, an over‑190% downside‑capture ratio, relatively high expense ratios, and modest liquidity. Consequently, the author recommends keeping FFSM on a watch list but stops short of a bullish thesis.