DSMC vs FEMV

DSMCCDistillate Small/Mid Cash Flow ETF

FEMVAFidelity Enhanced Mid Cap Value ETF

In short

DSMC Small-cap value usually means buying whatever screens cheap. Distillate ranks on free cash flow instead and typically skips heavily indebted companies, so the bargain bin arrives pre-sorted for balance sheets.

FEMV Active mid-cap value, priced like an index fund. FEMV hunts capital appreciation in the Russell Midcap Value corner of the US market for 0.23% a year, a fraction of the typical active US equity ETF fee.

Stated mandate

DSMC The fund seeks long-term capital appreciation through an actively managed strategy focused on securities with attractive valuation and cash-flow and quality characteristics.

FEMV The fund seeks capital appreciation and targets the U.S. mid-cap value segment of the equity market.

Why people hold it

• DSMC 0.55% a year, below the median for active US stock ETFs. Active stock picking without the old-school active price tag.
• The screen scores valuation on free cash flow and quality on a proprietary debt-to-income measure, and typically avoids companies carrying significant leverage.distillatecapital.com
• A tight book of roughly 100 small and mid caps, and what it owns stands among the stronger portfolios in its active US equity peer group. Pays quarterly.

• FEMV 0.23% a year, well under the going rate for active US equity ETFs. At that price, cost stops being the argument against going active.
• The mandate is stated plainly: US mid-cap value, measured against the Russell Midcap Value index, aiming at capital appreciation. Little guesswork about what you own.fidelity.com
• The portfolio mix and risk profile screen well against other active US stock ETFs, with no leverage, derivatives quirks or unusual wrapper features flagged in the structure.
• Part of Fidelity's Enhanced lineup, whose large-cap sibling FELC (0.18%) ranks among the strongest active US equity funds in the peer group.

Worth knowing

• DSMC Thinly traded and modest in size next to index giants, so spreads can run wider. Limit orders matter more here than on a mega-cap fund.
• Cash-flow and leverage screens cut out sizeable slices of the small-cap market, so sector weights and results can wander well away from a plain small-cap index.distillatecapital.com
• Smaller companies move harder in both directions than large caps, a risk the fund's own prospectus spells out. Launched in 2022, so the live record is short.distillatecapital.com

• FEMV Launched in 2026, so there is no long record to lean on and the risk read rests on a short history.
• A small asset base and thin trading volume are the trade-off for being early. Spreads can run wider than at a mega-fund, especially in fast markets.
• Distributions land once or twice a year, not monthly. This is a growth-of-capital mandate, not an income schedule.

Full DSMC profile⁠

Full FEMV profile⁠