FESM vs JPSV

FESMAFidelity Enhanced Small Cap ETF

JPSVCJPMorgan Active Small Cap Value 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.

JPSV A stock picker's cut of small-cap value: J.P. Morgan screens the Russell 2000 Value universe for quality and holds roughly 110 names, at the same 0.55% fee typical of active value funds.

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.

JPSV The fund seeks long-term capital appreciation through a portfolio focused primarily on high-quality U.S. small-cap value equity securities.

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.

• JPSV Active by design: the mandate pairs a value screen with a quality screen, hunting cheap small caps with sturdy fundamentals rather than whatever simply looks statistically cheap.jpmorgan.com
• The 0.55% expense ratio sits right at the median for its active value peer group, so the stock picking is not priced at a premium to comparable funds.
• Roughly 110 holdings: tight enough for individual picks to register, wide enough that no single name runs the portfolio.
• It measures itself against the Russell 2000 Value Index, giving a plain yardstick for what the managers add or subtract versus vanilla small-cap value.jpmorgan.com

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%.

• JPSV Thinly traded on a small asset base, so a chunk of the real cost can show up in the bid-ask spread instead of the expense ratio.
• Launched in 2023, which is a short record for judging an active manager through a full small-cap cycle.
• The highest-scoring funds in its cohort are index-style value ETFs like WTV and AVLV that charge a fraction of this fee, though they fish in large caps, not small.

Full FESM profile⁠

Full JPSV profile⁠