Core Insights - The Fidelity Small-Mid Multifactor ETF (FSMD) targets US small- and mid-cap equities, specifically those with a free-float market cap of at least USD 75 million and a minimum six-month traded volume of USD 25 million, while excluding the largest 500 companies [1] Group 1: Portfolio Construction Methodology - The underlying index selects stocks based on a composite of four factors: Value, Quality, Momentum, and Low Volatility, with specific weightings for each factor [1] - Value metrics include free cash flow yield, EBITDA/EV, tangible book/price, and next-twelve-months earnings/price, each contributing 25% to the composite [1] - Quality metrics focus on free cash flow margin, return on invested capital (ROIC), and free cash flow stability, with each metric contributing 33% [1] - Momentum is assessed through a combination of 12-month minus 1-month return, volatility-adjusted analog, earnings surprise, and short-interest, with respective weightings of 35%, 35%, 15%, and 15% [1] - Low Volatility is evaluated using 5-year price standard deviation, beta, and EPS volatility, each contributing 33% [1] - The ETF targets approximately 600 constituents and employs a weighting strategy that combines market-cap weight with an equal "active" overweight per name to limit concentration [1] - The index is reconstituted and reweighted semiannually on the third Friday of February and August [1]

Group 1 - The Franklin International Low Volatility High Dividend Index ETF (LVHI) offers a unique approach to international investing by emphasizing dividends, currency hedging, and low volatility [1] Group 2 - The individual investor's analysis focuses on cash flow potential, relative value, and economic moat, combining quantitative analysis with storytelling to assess investment opportunities [2] - The investor utilizes Python and algorithms to identify overlooked or overhyped companies in the stock market, integrating both fundamental and technical analysis to enhance investment success [2] - The investor has a strong educational background in accounting and economics, holding master's degrees and pursuing a PhD, which supports their analytical capabilities in the investment field [2]