FESM vs FSML: Grades, Fees and Holdings Compared

Fidelity Enhanced Small Cap ETF

FESMANYSE Arca

Franklin Small Cap Enhanced ETF

FSMLBNYSE Arca

Overlap

21.8%by weight

Expense ratio

FESM −0.17pt a year

FESM0.28%FSML0.45%

Avg volume · 30D

FESM 59.5×the volume

FESM1.02MFSML17.1K

FESM vs FSML Performance

Dec 31, 2025 – Oct 30, 2026

+21.2%FESM+17.9%FSML

Expense ratio: FESM 0.28%, better; FSML 0.45%
Fund size: FESM $6.41B; FSML $151M
1Y total return: FESM +23.4%; FSML No data
Yield (12M): FESM 0.86%; FSML No data
Holdings: FESM 892; FSML 303
Avg volume (30D): FESM 1.02M sh, better; FSML 17.1K sh
NAV per share: FESM $45.47; FSML $28.99
52W range

ETF.net Grade

Pillar letters and Scores for FESM, FSML, with each pillar’s weight
Pillar	FESM	FSML
Cost30% weight	A96Higher	A71
Mission25% weight	A85	Not scored
Risk15% weight	C54Higher	C52
Tradability15% weight	A93Higher	A81
Holdings10% weight	A82Higher	B59
Durability5% weight	A93Higher	B63

Rank among US Active Small-Cap funds

How we build Categories ›

Same Category. FESM and FSML are both graded against the same 39 US Active Small-Cap funds, so their Grades compare head to head.

US Active Small-Cap⁠

Category · 39 funds

See all 39 ›

FESM ranks 2nd and FSML 8th of 39 funds in the US Active Small-Cap Category.

Rank 1AAVSCAvantis U.S. Small Cap Equity ETFScore 88
Rank 2AFESMFidelity Enhanced Small Cap ETFScore 85
Rank 3ADFSVU.S. Small Cap Value Portfolio ETF Class SharesScore 82
Rank 7BRESMColumbia Research Enhanced Small Cap ETFScore 69
Rank 8BFSMLFranklin Small Cap Enhanced ETFScore 67
Rank 9BFSCCFederated Hermes MDT Small Cap Core ETFScore 64

Our read on each fund

ETF.net Research

FESMAFidelity Enhanced Small Cap ETF

FSMLBFranklin Small Cap Enhanced ETF

In short

FESM A quant small-cap strategy that has been running since 2007 and moved into an ETF wrapper in 2023 with the same mandate. It nudges the Russell 2000 rather than copying it, and charges far less than the typical active small-cap fund.

FSML Franklin's quant take on small caps: a proprietary model scores Russell 2000 companies on value, quality and momentum, and the portfolio tilts toward the top scorers. Active decisions in an index-shaped frame, for 0.45% a year.

Stated mandate

FESM The fund is a diversified U.S. equity strategy focused on small-cap companies. It seeks to outperform its benchmark through a quantitative process that balances risk and return.

FSML The Fund seeks long-term capital appreciation by investing at least 80% of net assets in small-capitalization equity securities and economically similar derivatives or instruments.

Why people hold it

FESM Costs 0.28% a year, roughly half the median for active US small-cap ETFs. Cheap fuel for a strategy that only needs to beat its benchmark by a little.
The strategy dates to 2007 as a Fidelity mutual fund and kept the same objective when it converted to an ETF in 2023. Long history, newer ticker.fidelity.com
A multi-billion-dollar fund that trades actively, so getting in and out tends to be straightforward. One of the stronger builds in the active small-cap group.
Spreads across roughly 600 small-cap names, so no single blowup dominates. This is a diversified core sleeve, not a concentrated stock-picker bet.

FSML The 0.45% fee lands below the median for active small-cap ETFs, a corner of the market where paying up for a stock picker is the norm.
The recipe is written down: at least 80% of net assets in small-cap equities, ranked by a value, quality and momentum model with the Russell 2000 as the reference.
Already sits in the upper half of its active small-cap peer group while being one of the newest names in it.
Plain-vanilla plumbing: a standard 1940 Act fund that pays quarterly and sends a 1099, not a K-1.

Worth knowing

FESM Small caps are the choppiest corner of the US market, and this fund lives there full time. Expect a bumpier ride than a large-cap core holding.fidelity.com
Enhanced index means small tilts around the Russell 2000, not a break from it. Results track close to the index rather than looking dramatically different.fidelity.com
Cheap, but not the cheapest in the room: top-rated peers AVSC and AVUV run 0.25% and DUHP 0.20%.

FSML It launched in December 2025, so there is very little live history behind the model and risk readings rest on a short window.
Cheaper systematic small-cap options exist (AVUV, AVSC, DUHP). The extra fee here buys Franklin's scoring model, not broader exposure.
The Russell 2000 is a yardstick, not a leash: the fund is actively run, so holdings and results can diverge from that index in either direction.

Full FESM profile⁠

Full FSML profile⁠

FESM vs FSML Holdings

How FESM and FSML differ

Overlap by weight

21.8%

Shared holdings make up 60.2% of FSML and 31.3% of FESM.

Level by level

Holdings188 in both21.8%
Countryby domicile97.7%
Asset classEquity100%

Sector

No Sector split for FSML.

Country, concentration and asset class

Country by domicile

Country weights in FESM and FSML, widest gap first
Country	More in FESMMore in FSML	FESM	FSML
United States	FESM +2.3 points	99.4%	97.1%
Brazil	FSML +0.9 points	0.2%	1.1%
Hong Kong	FSML +0.5 points	0.1%	0.6%
Switzerland	FSML +0.5 points	0.1%	0.6%
Other countries (2)	FSML +0.4 points	0.2%	0.6%

Concentration

Weight in the 10 largest Holdings

FESM9.7%
FSML13.0%

Securities held

FESM889
FSML301

Asset class

FESM: Equity
FSML: Equity

Holdings

Only in FESM701
In both188
Only in FSML113

Only in FESM

701 securities, 70.5% of FESM by weight

Securities Lending Cf2.80%
Glaukos Corp1.02%
Fluor Corp0.73%
Oscar Health Inc - Class A0.72%
Installed Building Prod Inc0.71%
Griffon Corp0.67%
Openlane Inc0.64%
Phillips Edison & Co0.62%
Maxlinear Inc0.59%
Ceco Environmental Corp0.59%
Aci Worldwide Inc0.58%
Materion Corp0.58%
Balchem Corp0.58%
Payoneer Global Inc0.57%
Wsfs Financial Corp0.57%
Delek Us Holdings Inc0.56%
Guardant Health Inc0.55%
Home Bancshares Inc0.55%
Encore Cap Group Inc0.53%
Sensient Technologies Corp0.52%
Atricure Inc0.52%
Aar Corp0.51%
Option Care Health Inc0.49%
Kodiak Gas Services Inc0.49%
Wesbanco Inc0.48%
Extreme Networks Inc0.47%
Skyward Specialty Ins Grp Inc0.46%
Glacier Bancorp Inc0.45%
Wisdomtree Inc0.44%
Life Time Group Holdings Inc0.43%
Callaway Golf Company0.42%
Stonex Group Inc0.42%
Benchmark Electronics Inc0.41%
Bgc Group Inc A0.41%
Eastern Bankshares Inc0.40%
Marriott Vacations World0.40%
Federated Hermes Inc0.40%
Dxp Enterprises Inc0.38%
United Natural Foods Inc0.37%
Wiley (John) & Sons Inc Class A0.36%
United Community Banks Ga0.36%
Cavco Industries Inc0.36%
Upstart Holdings Inc0.35%
Ducommun Inc0.34%
M/I Homes Inc0.34%
Doubleverify Holdings Inc0.34%
Q2 Holdings Inc0.33%
Progress Software Corp0.33%
Northwest Bancshares Inc0.33%
Exlservice Holdings Inc0.32%

Only in FSML

113 securities, 38.9% of FSML by weight

Box Inc - Class A1.59%
Jackson Financial Inc-A1.31%
Kohls Corp1.29%
Teradata Corp1.29%
Exponent Inc1.28%
Customers Bancorp Inc1.15%
Mercury General Corp1.13%
Gulfport Energy Corp1.11%
Bj's Restaurants Inc1.06%
Alexander's Inc1.04%
International Bancshares1.03%
American States Water Co1.03%
Bankunited Inc1.02%
Herbalife Ltd1.01%
Bancorp Inc/The0.99%
Photronics Inc0.93%
Boise Cascade Co0.92%
Pricesmart Inc0.91%
Buckle Inc/The0.88%
Vishay Intertechnology In0.83%
Seadrill Limited0.82%
Avient Corp0.80%
Manitowoc Company Inc0.77%
Astronics Corp0.77%
Clover Health Investments0.73%
Garrett Motion Inc0.54%
Webull Corp0.54%
Legence Corp-Cl A0.49%
Xenia Hotels & Resorts In0.48%
Power Solutions Internati0.48%
Spyre Therapeutics Inc0.47%
Orion SA0.44%
Kiniksa Pharmaceuticals I0.39%
Bloomin' Brands Inc0.37%
Amylyx Pharmaceuticals In0.30%
Lumexa Imaging Holdings I0.29%
Lb Pharmaceuticals Inc0.24%
Selective Insurance Group0.23%
Omeros Corp0.23%
Rackspace Technology Inc0.20%
Rush Enterprises Inc - Class0.20%
Tidewater Inc0.18%
Novocure Ltd0.18%
Lifestance Health Group I0.17%
Progyny Inc0.15%
Hovnanian Enterprises-A0.15%
Marex Group Ltd0.15%
Signet Jewelers Ltd0.14%
Bankwell Financial Group0.14%
Ibex Ltd0.14%

Weight gaps

The 100 widest of 188 Holdings in both funds.

Holding weights in FESM and FSML, widest gap first
Holding	More in FESMMore in FSML	FESM	FSML
Valley Natl BancorpVLY	FSML +1.31 points	<0.01%	1.31%
Idt Corp Class B NewIDT	FSML +1.14 points	0.12%	1.26%
Core Natural Resources IncCNR	FSML +1.12 points	0.00%	1.12%
Axos Financial IncAX	FSML +1.02 points	<0.01%	1.02%
Hinge Health IncHNGE	FSML +1.00 points	0.37%	1.37%
Capitol Fed Finl (2ND Step Cv)CFFN	FSML +0.98 points	<0.01%	0.98%
Cbl & Associat Properties IncCBL	FSML +0.97 points	0.04%	1.01%
Bread Financial Holdings IncBFH	FSML +0.94 points	0.20%	1.14%
Texas Capital Bancshares IncTCBI	FSML +0.86 points	0.30%	1.16%
Ufp Industries IncUFPI	FSML +0.83 points	0.00%	0.83%
Cvr Energy IncCVI	FSML +0.81 points	<0.01%	0.82%
Oceaneering International IncOII	FSML +0.80 points	0.22%	1.02%
Constellium SECSTM	FSML +0.79 points	0.07%	0.86%
Newmark Group Inc Class ANMRK	FSML +0.74 points	0.20%	0.94%
Acadian Asset Management IncAAMI	FSML +0.74 points	0.30%	1.04%
10X Genomics IncTXG	FSML +0.67 points	0.24%	0.91%
Sunstone Hotel Invs IncSHO	FSML +0.65 points	0.23%	0.88%
Artisan Partners Asset Mgt AAPAM	FSML +0.64 points	0.04%	0.68%
Babcock &WILCOX Enterpr IncBW	FSML +0.60 points	0.05%	0.65%
Healthequity IncHQY	FESM +0.59 points	0.69%	0.10%
Atmus Filtration Techn IncATMU	FSML +0.59 points	0.24%	0.83%
Enersys IncENS	FESM +0.56 points	0.69%	0.13%
Alpha & Omega Semicndtr LtdAOSL	FSML +0.55 points	0.06%	0.61%
Krystal Biotech IncKRYS	FSML +0.55 points	0.03%	0.58%
Tutor Perini CorpTPC	FSML +0.55 points	0.53%	1.08%
Monarch Casino & Resort IncMCRI	FSML +0.54 points	0.19%	0.73%
National Energy Services ReuniNESR	FSML +0.54 points	0.06%	0.60%
Cohu IncCOHU	FSML +0.53 points	0.01%	0.54%
Proto Labs IncPRLB	FSML +0.52 points	0.25%	0.77%
Irhythm Technologies IncIRTC	FSML +0.53 points	0.00%	0.53%
Sonos IncSONO	FESM +0.50 points	0.57%	0.07%
Abercrombie & Fitch Co Class AANF	FESM +0.48 points	0.71%	0.23%
Tg Therapeutics IncTGTX	FSML +0.47 points	0.15%	0.62%
Enova Intl IncENVA	FSML +0.45 points	0.40%	0.85%
Indivior Pharmaceuticals IncINDV	FSML +0.44 points	0.00%	0.44%
Diebold Nixdorf IncDBD	FSML +0.43 points	0.29%	0.72%
Commercial Metals CoCMC	FSML +0.42 points	0.75%	1.17%
Real Remax Group IncREAX	FSML +0.40 points	0.03%	0.43%
Hci Group IncHCI	FESM +0.40 points	0.53%	0.13%
Cerus CorpCERS	FSML +0.40 points	0.06%	0.46%
Cushman & Wakefield LtdCWK	FESM +0.39 points	0.49%	0.10%
Kaiser Alum CorpKALU	FSML +0.37 points	0.05%	0.42%
Navan Inc ANAVN	FESM +0.38 points	0.53%	0.15%
Stepan CoSCL	FSML +0.38 points	<0.01%	0.38%
Arteris IncAIP	FSML +0.37 points	0.11%	0.48%
Commvault Systems IncCVLT	FESM +0.36 points	0.48%	0.12%
Twist Bioscience CorpTWST	FESM +0.36 points	0.44%	0.08%
Xenon Pharmaceuticals IncXENE	FSML +0.35 points	0.08%	0.43%
Arcutis Biotherapeutics IncARQT	FSML +0.34 points	0.14%	0.48%
Pagerduty IncPD	FSML +0.34 points	0.23%	0.57%
Diamondrock Hospitality CoDRH	FSML +0.34 points	0.06%	0.40%
Acadia Pharmaceuticals IncACAD	FSML +0.35 points	0.04%	0.39%
Adaptive Biotechnologies CorpADPT	FESM +0.34 points	0.48%	0.14%
Skywest IncSKYW	FSML +0.34 points	0.49%	0.83%
Clear Secure IncYOU	FSML +0.34 points	0.52%	0.86%
Cargurus Inc Class ACARG	FESM +0.32 points	0.40%	0.08%
Workiva IncWK	FESM +0.32 points	0.49%	0.17%
Cno Financial Group IncCNO	FSML +0.32 points	0.20%	0.52%
Anaptysbio IncANAB	FSML +0.32 points	<0.01%	0.32%
Genedx Holdings Corp-AWGS	FSML +0.31 points	0.18%	0.49%
Pubmatic Inc Class APUBM	FSML +0.31 points	0.01%	0.32%
Harmony Biosciences Hldgs IncHRMY	FESM +0.30 points	0.52%	0.21%
Insight Enterprises IncNSIT	FESM +0.30 points	0.49%	0.19%
Veradermics IncMANE	FSML +0.30 points	0.04%	0.34%
Zymeworks Delaware IncZYME	FSML +0.29 points	0.08%	0.37%
Oruka Therapeutics IncORKA	FSML +0.28 points	0.11%	0.39%
Nextdoor Holdings IncNXDR	FSML +0.28 points	0.10%	0.38%
Carters IncCRI	FSML +0.28 points	<0.01%	0.28%
Yelp IncYELP	FESM +0.28 points	0.35%	0.07%
Protagonist Therapeutics IncPTGX	FSML +0.26 points	0.24%	0.50%
Avista CorpAVA	FESM +0.25 points	0.34%	0.09%
Kennametal IncKMT	FESM +0.26 points	0.35%	0.09%
Aurinia Pharmaceuticals IncAUPH	FSML +0.25 points	0.12%	0.37%
Cytokinetics IncCYTK	FESM +0.24 points	0.33%	0.09%
Rhythm Pharmaceuticals IncRYTM	FSML +0.24 points	0.22%	0.46%
Nmi Holdings IncNMIH	FESM +0.24 points	0.34%	0.10%
Hallador Petroleum CoHNRG	FSML +0.24 points	0.03%	0.27%
V2X IncVVX	FESM +0.23 points	0.34%	0.11%
Cogent Biosciences IncCOGT	FSML +0.22 points	0.14%	0.36%
Outfront Media IncOUT	FSML +0.22 points	0.72%	0.94%
Allegiant Travel CoALGT	FSML +0.22 points	0.11%	0.33%
Ironwood Pharma Class A (Pend)IRWD	FSML +0.21 points	0.06%	0.27%
8X8 IncEGHT	FSML +0.21 points	0.05%	0.26%
Southwest Gas Holdings IncSWX	FESM +0.21 points	0.31%	0.10%
Appian Corp Class AAPPN	FSML +0.21 points	0.31%	0.52%
Qualys IncQLYS	FSML +0.18 points	0.00%	0.18%
Caredx IncCDNA	FSML +0.18 points	0.21%	0.39%
Essent Group LtdESNT	FSML +0.16 points	0.00%	0.16%
Relay Therapeutics IncRLAY	FSML +0.15 points	0.17%	0.32%
Metropolitan Bank Holding CorpMCB	FSML +0.15 points	0.08%	0.23%
Aveanna Healthcare Hldgs IncAVAH	FESM +0.15 points	0.31%	0.16%
Tango Therapeutics IncTNGX	FSML +0.15 points	0.14%	0.29%
Patterson-Uti Energy IncPTEN	FESM +0.15 points	0.27%	0.12%
Rush Street Interactive IncRSI	FSML +0.14 points	0.05%	0.19%
Ptc Therapeutics IncPTCT	FESM +0.13 points	0.21%	0.08%
Werner Enterprises IncWERN	FESM +0.14 points	0.21%	0.07%
Rigel Pharmaceuticals IncRIGL	FSML +0.13 points	<0.01%	0.13%
American Eagle Outfitters IncAEO	FESM +0.13 points	0.20%	0.07%
Cal-Maine Foods IncCALM	FSML +0.13 points	<0.01%	0.13%
Tandem Diabetes Care IncTNDM	FESM +0.12 points	0.25%	0.13%

All 632 FESM holdings⁠All FSML holdings⁠

How we measure overlap

Each holding counts at its smaller weight in the two funds, summed over the full Holdings. Sector, country and asset class use the same rule on each fund’s split. Cash, FX and derivative lines stay out of the counts. Two bond funds get no overlap figure.

FESM vs FSML Cost

Overpaying FSML vs FESM

$3,286

On $10,000 over 30 years. 7% growth a year before fees, expense ratio only.

FESM 0.28%
$5,755
FSML 0.45%
$9,041

Amount$10,000

Years30 years

Cost over time

FESM 0.28%
FSML 0.45%
Overpaying

Year by year

Year	FESM	FSML	Overpaying
10	$509	$812	$303
20	$1,976	$3,128	$1,152
30	$5,755	$9,041	$3,286

Expense ratio

0.28%FESM, cheaper
0.45%FSML

FESM0.28%FSML0.45%

0.25%2.20%

Middle half of US Active Small-Cap funds
Median 0.55%

FESM 2nd cheapest of 39 funds

FSML 12th cheapest of 39 funds

FESM vs FSML Dividends

Last 12 months to Oct 30, 2026

Yield (12M): FESM 0.86%; FSML No data
Payout (12M): FESM $0.39; FSML No data
Last payment: FESM $0.10; FSML $0.03
Ex-dividend: FESM Sep 18, 2026; FSML Sep 18, 2026
Paid on: FESM Sep 22, 2026; FSML Sep 25, 2026
Frequency: FESM Quarterly; FSML Quarterly

Distribution history

Per share, 2023 to 2026, same scale for both

FESMQuarterly · 13 paymentsAll FESM payments⁠

FSMLQuarterly · 4 paymentsAll FSML payments⁠

FESM vs FSML Risk

Fall from peak · 5 years

This chart needs five years of history for both funds.

Risk facts

VolatilityStd dev, 3 years: FESM 19.6%since Dec 2023FSML No data
Return per unit of riskSharpe ratio, 3 years: FESM 0.97since Dec 2023FSML No data
Worst fallMax drawdown, 5 years: FESM −26.9%since Nov 2023FSML No data
Market sensitivityBeta, 5 years: FESM 1.34FSML 1.05; Market = 1

FESM and FSML in the news

All news⁠

Best ETFs
Schwab and Vanguard charge the same 0.03%. Their small-cap funds are 3.7 percentage points apart
Updated Oct 2, 2026FESM

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FESM vs FSML

In short

Stated mandate

Why people hold it

Worth knowing

How FESM and FSML differ

Level by level

Sector

Country, concentration and asset class

Country by domicile

Concentration

Asset class

Holdings

Only in FESM

Only in FSML

Weight gaps

Cost over time

Year by year

Distribution history

Fall from peak · 5 years

Risk facts

Schwab and Vanguard charge the same 0.03%. Their small-cap funds are 3.7 percentage points apart

How FESM and FSML differ

Level by level

Sector

Country, concentration and asset class

Country by domicile

Concentration

Asset class

Holdings

Only in FESM

Only in FSML

Weight gaps