DFSV vs FSCC

DFSVAU.S. Small Cap Value Portfolio ETF Class Shares

FSCCBFederated Hermes MDT Small Cap Core ETF

In short

DFSV Small-cap value, spread wide: roughly a thousand of the market's cheaper small companies, measured against the Russell 2000 Value Index. A deeper bench than most rivals carry, at a higher price than the plain index funds beside it.

FSCC A quant engine aimed at the Russell 2000. Federated Hermes' MDT models pick roughly 300 small caps from the index, then the prospectus says it plainly: this fund is not built to mirror the benchmark's composition or returns.

Stated mandate

DFSV The fund seeks long-term capital appreciation.

FSCC The Fund seeks long-term capital appreciation.

Why people hold it

• DFSV Roughly 1,000 holdings spread the small-value bet across the whole opportunity set instead of a handful of names.
• A multi-billion-dollar fund that trades actively, so getting a position on or off is rarely the hard part.
• Portfolio construction is the strong suit here: broad, diversified small-cap value exposure, with distributions paid quarterly.
• The mandate is plainly stated: long-term capital appreciation from US stocks, no side quests.

• FSCC Costs 0.36% net of a waiver through May 1, 2027 (0.50% gross), below the median fee among the active US small-cap funds we grade.federatedhermes.com
• Undercuts both other graded funds fishing the same Russell 2000 pond: FSML at 0.45% and GSC at 0.75% net of a waiver through December 29, 2026.
• Rules over hunches: a bottom-up quantitative process ranks growth and value names, and the result spreads across roughly 300 holdings.sec.gov
• Does exactly what the label says, a US small-cap equity fund, and is one of the stronger implementations in its peer group.

Worth knowing

• DFSV At 0.30% a year it costs more than the typical US value ETF (median 0.18%), and VTWV runs against the same Russell 2000 Value benchmark for 0.06%.
• Small-cap value is a bumpier corner than the large-cap value funds anchoring this group (VTV, SCHV), and the ride shows it.
• Launched in 2022, so its live record is short next to the value funds it sits beside.

• FSCC The waiver runs to May 1, 2027. If it is not renewed, the fee steps back toward the 0.50% gross rate.
• Full equity exposure, no hedge or buffer, in the corner of the market that swings hardest. Small caps can fall further than the large-cap market in a selloff.
• The live record starts in July 2024, and trading is moderate rather than heavy, so the bid-ask spread matters more here than in the largest small-cap ETFs.

Full DFSV profile⁠

Full FSCC profile⁠