FIL US FUND SMID UCITS ETF ACC
| Issuer: Fidelity International |
| Asset Class: Equity |
| TER: 35bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 04 Sep 2025 |
| Ticker: FFSM |
| ISIN: IE000PNL0242 |
This investment vehicle is designed to offer precise exposure to the small- and mid-capitalization segment of the U.S. equity market, with a distinct focus on companies demonstrating superior quality characteristics. By tracking a specialized, rules-based index, the fund aims to identify and invest in firms with robust financial health, evidenced by strong profitability, operational efficiency, and consistent cash flow generation. This quality-focused methodology serves as an alternative to conventional market-cap weighted strategies, which can be indiscriminate regarding company fundamentals. The strategy specifically targets businesses believed to possess durable competitive advantages and the potential for long-term, sustainable growth, making it a compelling option for investors seeking to enhance the defensive characteristics of their U.S. equity allocation while still capturing the growth potential inherent in smaller, dynamic companies.
The portfolio construction process is systematic and transparent, beginning with a broad universe of U.S. small- and mid-cap stocks. From this pool, securities are selected and weighted based on their "quality" score, which aggregates multiple financial metrics. In addition to this financial screening, the fund incorporates key sustainability principles by applying specific exclusionary filters. This process removes companies with substantial business involvement in controversial sectors, such as thermal coal, unconventional oil and gas, and certain types of weaponry. As a physically replicated fund, it directly owns the underlying shares of the constituent companies. Furthermore, its accumulating share class structure ensures that all dividend income is automatically reinvested back into the portfolio, harnessing the power of compounding to potentially enhance long-term returns for investors.
