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FSEG - ETF AI Analysis

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FSEG

Fidelity Enhanced Small Cap Growth ETF (FSEG)

Rating:61Neutral
Price Target:
FSEG, the Fidelity Enhanced Small Cap Growth ETF, has a solid overall rating driven mainly by strong holdings like HealthEquity, Balchem, and Plexus, which show healthy financial performance, growth, and supportive corporate actions such as buybacks and dividends. However, weaker names like Oscar Health, with profitability and cash flow challenges, and several holdings facing high valuations or overbought technical signals, weigh on the fund’s rating. The main risk factor is that many top positions share similar valuation and leverage concerns, which could make the ETF more sensitive to market pullbacks or rising interest rates.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating positive recent momentum.
Growth-Oriented Top Holdings
Several of the largest positions, especially in technology and industrials, have delivered strong year-to-date performance, helping drive the fund’s returns.
Sector Diversification Within Small Caps
Holdings spread across technology, health care, industrials, financials, and other sectors help reduce the impact if any one industry weakens.
Negative Factors
Heavy U.S. Concentration
With almost all assets in U.S. companies, the fund offers very limited geographic diversification and is highly tied to the U.S. economy.
Small Fund Size
The relatively low assets under management may lead to higher trading costs or the risk that the fund could be closed if it does not grow.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for an ETF, which means fees could eat into returns over time compared with cheaper alternatives.

FSEG vs. SPDR S&P 500 ETF (SPY)

FSEG Summary

Fidelity Enhanced Small Cap Growth ETF (FSEG) is an actively managed fund that focuses on smaller U.S. companies with fast growth potential, using the Russell 2000 Growth Index as its starting point. It mainly holds stocks in technology, health care, and industrials, including names like Bloom Energy and Guardant Health. Investors might consider FSEG if they want added growth potential and diversification beyond large, well-known companies. However, because it invests in small, fast-growing firms and leans heavily on sectors like tech and health care, its price can be more volatile and may rise or fall more sharply than the overall market.
How much will it cost me?This ETF has an expense ratio of 0.28%, which means you’ll pay about $2.80 per year for every $1,000 invested. That’s a bit higher than the average index ETF because it’s actively managed, with managers selecting small-cap growth stocks in an effort to outperform the market.
What would affect this ETF?This ETF could benefit if the U.S. economy stays healthy, investor appetite for smaller growth companies improves, and trends in technology and health care remain strong, supporting many of its key holdings. On the other hand, it could be hurt by rising interest rates, a downturn in small-cap stocks, regulatory or reimbursement changes in health care, or a pullback in high-growth tech names, all of which can make its concentrated small-cap growth exposure more volatile.

FSEG Top 10 Holdings

FSEG is leaning hard into U.S. small-cap growth, with health care and tech names steering the ship. Glaukos and Oscar Health have been rising stars, giving the fund a lift as their growth stories gain traction. On the tech and industrial side, Materion and Kulicke & Soffa have delivered strong year-to-date runs, even if recent trading has been a bit choppy. Offsetting some of that strength, Plexus and CommVault have been more mixed lately, occasionally dragging on returns. Overall, it’s a U.S.-focused, growth-heavy portfolio with a clear tilt toward innovative small caps.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Oscar Health0.95%$64.48K$9.96B65.98%
49
Neutral
Plexus0.88%$59.31K$6.56B77.00%
75
Outperform
Balchem0.85%$57.70K$5.47B6.48%
75
Outperform
Healthequity0.84%$56.80K$7.95B5.02%
76
Outperform
Abercrombie Fitch0.83%$55.98K$6.65B56.94%
78
Outperform
Glaukos0.78%$52.66K$10.47B88.92%
61
Neutral
Kodiak Gas Services, Inc.0.77%$52.45K$6.33B77.21%
68
Neutral
Materion0.77%$52.20K$5.09B116.93%
69
Neutral
BrightSpring Health Services, Inc.0.77%$52.03K$12.02B151.68%
67
Neutral
Enova International0.76%$51.30K$5.74B91.88%
71
Outperform

FSEG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
27.55
Negative
100DMA
200DMA
Market Momentum
MACD
-0.14
Positive
RSI
45.72
Neutral
STOCH
33.09
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSEG, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 27.59, equal to the 50-day MA of 27.55, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 33.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSEG.

FSEG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$6.73M0.28%
61
Neutral
$56.19M0.85%
62
Neutral
$52.61M0.95%
63
Neutral
$51.56M0.49%
63
Neutral
$28.95M0.80%
60
Neutral
$7.68M0.55%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSEG
Fidelity Enhanced Small Cap Growth ETF
27.14
1.59
6.22%
TMFS
Motley Fool Small-Cap Growth ETF
MMSC
First Trust Multi-Manager Small Cap Opportunities ETF
ACSG
American Century Small Cap Growth Insights ETF
SGRW
Harbor Active Small Cap Growth ETF
SAWS
AAM Sawgrass US Small Cap Quality Growth ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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