Fidelity Expands Active ETF Suite with Four Small-, Mid-Cap Strategies — FMR LLC (Fidelity Investments)

Event summary

Fidelity launched four new active ETFs: FEMG, FEMV, FSEG, and FSEV, targeting mid- and small-cap growth/value segments.
The new ETFs bring the firm's Enhanced ETF suite to 12 products, all employing proprietary quantitative strategies.
Expense ratios range from 0.23% to 0.28%, with team-based portfolio management led by Anna Lester, George Liu, and Shashi Naik.
Active ETF allocations in advisor portfolios rose to 38% in Q1 2026, up from 13% in 2022.

The big picture

Fidelity's expansion into small- and mid-cap active ETFs reflects broader industry shifts toward factor-based investing and advisor demand for tax-efficient, flexible portfolio solutions. With $149 billion in ETF AUM, Fidelity is leveraging its quantitative capabilities to capture growing interest in actively managed strategies across asset classes.

What we're watching

Product Differentiation: Whether Fidelity's factor-based approach can sustain competitive advantage amid rising active ETF competition.
Advisor Adoption: The pace at which active ETF allocations grow in advisor portfolios, particularly for small/mid-cap strategies.
Performance Metrics: How the new ETFs track against benchmarks and peers, given their systematic stock selection methodology.