NYSE Arca · ETF
Invest in FESM ETF from India
Indian and foreign residents can buy Fidelity Enhanced Small ETF (FESM) units directly through Paasa.
By Paasa · Updated
FESM at a glance
- Price
- $45.17-$0.20 (0.44%)
- Expense ratio
- 0.28%
- Day range
- $44.93 – $45.42
- Assets
- $6.5B
- Domicile
- the US
- Holdings
- 632
- Launched
- 2007
- Dividends
- Accumulating
- 1 month
- -4.70%
- 6 months
- +21.00%
- YTD
- +18.65%
- 1 year
- +24.09%
- 5 years
- —
Price change, excluding dividends.
Top 10 holdings
- 1SECURITIES LENDING CF4.3%
- 2CASH CF1.2%
- 3COMMERCIAL METALS COCMC0.8%
- 4PLEXUS CORPPLXS0.7%
- 5KULICKE & SOFFA INDUSTRIES INCKLIC0.7%
- 6OSCAR HEALTH INC - CLASS AOSCR0.7%
- 7OPTION CARE HEALTH INCOPCH0.6%
- 8GRIFFON CORPGFF0.6%
- 9OUTFRONT MEDIA INCOUT0.6%
- 10KODIAK GAS SERVICES INCKGS0.6%
FESM holds 632 securities in total. These 10 are 11.0% of the fund.
Where the money is invested
Sectors
- Healthcare21.7%
- Technology18.0%
- Financial Services16.7%
- Industrials14.1%
- Consumer Cyclical9.1%
- Energy5.9%
Countries
- United States95.1%
- Bermuda1.4%
- Other1.4%
- Ireland0.6%
- Puerto Rico0.4%
- Switzerland0.3%
Similar funds
| Fund | Expense ratio | Assets |
|---|---|---|
| GSCAMEXGoldman Sachs Small Cap Equity ETF | 0.8% | 272.6M |
| FSMLAMEXFranklin Small Cap Enhanced ETF | 0.45% | 145.8M |
Assets are shown in each fund's own reporting currency.
How to invest in FESM from India
Step 1
Open your Paasa account
KYC takes a few minutes: PAN, Aadhaar and address proof. Your brokerage account is opened in your own name with Interactive Brokers.
Step 2
Add funds from your Indian bank account
Remit up to $250,000 a year under the RBI's Liberalised Remittance Scheme. Your bank converts the rupees to US dollars at its rate on the day you remit.
Step 3
Search FESM and buy
Find the fund by its ticker, FESM, on NYSE Arca, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in FESM from India
What FESM holds
This U.S. equity fund specializes in smaller companies, utilizing a structured and consistent process to identify those with strong, appealing characteristics.
Dividends reinvested for you
Dividends from FESM's holdings are reinvested inside the fund, so nothing is paid out to you and there is no dividend to declare in India.
Hold a dollar asset
FESM is priced in US dollars, so a weaker rupee adds to what it's worth in rupees. The rupee depreciated over 85% against the dollar between 2010 and 2025.
Buy a fraction of a unit
Buy by amount, not by unit, and get the matching fraction of one FESM unit. There is no minimum trade size.
Paasa handles the paperwork
Investing abroad brings paperwork with it: remittance filings, capital gains reporting, foreign asset disclosure. Paasa prepares all of it for you. Your India-ready tax reports arrive at year end, ready to file.
Planning to hold more than $60,000 in US ETFs? Here's what US estate tax means for you.
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family.
A UCITS ETF tracking a similar market sits outside US estate tax.
Frequently asked questions
Can I buy FESM from India?
Yes. Indian residents can buy Fidelity Enhanced Small ETF (FESM) through Paasa. It is listed on NYSE Arca and trades in US dollars. Your money leaves India under the RBI's Liberalised Remittance Scheme, and the units are held in your own name at Interactive Brokers.
What does FESM invest in?
Fidelity Enhanced Small ETF holds 632 securities. Its largest holdings are SECURITIES LENDING CF (4.3%), CASH CF (1.2%) and COMMERCIAL METALS CO (0.8%). Healthcare is its largest sector at 21.7%. It is an accumulating fund domiciled in the US.
What is the expense ratio of FESM?
Fidelity Enhanced Small ETF has an expense ratio of 0.28% a year, taken from the fund's assets rather than billed to you. The fund manages about $6.5B.
Does FESM pay dividends?
No. Fidelity Enhanced Small ETF is an accumulating fund. Dividends from its holdings are reinvested inside the fund, so nothing is paid out to you and there is no dividend to declare in India.
What tax do I pay in India when I sell FESM?
The US does not levy capital gains tax on shares for Indian residents. In India, gains on foreign ETF units held for more than 24 months are long-term and taxed at 12.5% without indexation, and gains on units held for 24 months or less are short-term and taxed at your income-tax slab rate. Both are worked out in rupees at the USD/INR rate on the day you bought and the day you sold, so the currency move is part of the gain. Paasa's capital-gains statement gives you the figures for your return.
Can I buy a fraction of one FESM unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $45.17, and there is no minimum trade size.
What happens to my FESM units if I pass away?
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family. A UCITS ETF tracking a similar market sits outside US estate tax. Paasa's US estate tax calculator shows the exposure for a given portfolio value.