FEMV vs TSME

FEMVAFidelity Enhanced Mid Cap Value ETF

TSMECThrivent Small-Mid Cap Equity 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.

TSME Active stock picking pointed at the part of the US market where it still has room to work: small and mid caps, run by Thrivent's own managers since 2022 and priced at the going rate for active equity rather than a premium.

Stated mandate

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

TSME The Fund seeks long-term capital growth.

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.

• TSME A live stock picker, not an index clone, working in US small and mid caps. The cheap leaders in its active-equity cohort (DFAU, AVLC) mostly fish in large caps.
• The 0.65% expense ratio sits right at the median for active US equity funds, so the active mandate does not come with a surcharge versus the active field.
• Portfolio construction and staying power both hold up in a crowded active-equity field, placing the fund in the upper half of its peer group.
• Trading friction is mild for an active fund, so buying and selling costs less than it does on thinly traded small-cap products.

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.

• TSME Small and mid caps swing harder than large caps, and the mandate keeps the fund parked there through the rough stretches.
• Against index-style large-cap peers such as DFAU at 0.12%, the 0.65% fee is a wide gap that the stock picking has to work against.
• Launched in 2022, so the track record is short and payouts arrive once or twice a year rather than monthly.

Full FEMV profile⁠

Full TSME profile⁠