The “OMFL” ETF Shows Multi-Factor Investing Can Work

Furthermore, mid-cap equities can also tune out some of the volatility experienced by their small-cap brethren. Investors looking at large-cap stock positions may want more aggressive returns with better growth prospects without the inherent volatility of small cap stocks, and mid-caps strike this perfect balance of performance, diversity and safety.

FSMD offers investors competitive pricing with a total expense ratio of just 0.29%. FSMD will begin trading Thursday on the New York Stock Exchange and will be available to individual investors or financial advisors for purchase commission-free through Fidelity’s online brokerage platforms.

FSMD will apply Fidelity’s in-house quantitative analysis and proprietary risk management to seek differentiated sources of return to help drive better portfolio outcomes. FSMD applies Fidelity’s multifactor approach to both small and mid-cap stocks — a unique universe that has historically provided better exposure to the size factor than investing in only small-caps.

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