FEMV vs SMIG

FEMVAFidelity Enhanced Mid Cap Value ETF

SMIGBBahl & Gaynor Small/Mid Cap Income Growth ETF

In short

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.

SMIG Small caps are the market's dividend desert. SMIG hunts there anyway: an actively run book of about 60 small- and mid-cap companies chosen for rising dividend income and downside protection, with cash paid out monthly.

Stated mandate

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

SMIG The Fund pursues current and increasing dividend income, downside protection, and long-term capital growth. It is actively managed and normally commits at least 80% of net assets to small- and mid-capitalization companies.

Why people hold it

• 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.

• SMIG Unusual mandate: at least 80% of net assets in small- and mid-cap companies, selected for current and increasing dividend income and downside protection, not just headline yield.
• Costs 0.60% a year, under the median for active US equity ETFs in its group, and distributions land monthly rather than quarterly.
• About 60 holdings, hand-picked. Every name has to earn its slot, which is the opposite of a closet index.
• Launched in 2021 and now a multi-billion-dollar fund that trades at moderate volume, one of the stronger showings among the active US equity ETFs we grade.

Worth knowing

• 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.

• SMIG The prospectus benchmark is the S&P 500, a large-cap index, so headline comparisons pit this small/mid portfolio against a very different universe.
• Active stock picking has a price: 0.60% sits well above broad low-cost active peers such as DFAU (0.12%) and FELC (0.18%).
• Downside protection is a stated objective, not a mechanism. A concentrated book of roughly 60 small and mid caps can still move sharply on a few names.

Full FEMV profile⁠

Full SMIG profile⁠