FCMO ETF: what Fidelity U.S. Momentum ETF is, what it holds, and how it works
Short answer: FCMO is a rules-based U.S. equity ETF from Fidelity that owns U.S. stocks showing the strongest recent price momentum. It listed in June 2020, charges 0.37% MER, and has put up a 31.8% three-year annualized return through May 2026, the strongest of any factor ETF on Morningstar’s recent screen. It is a tilt, not a core.
FCMO is the U.S. cousin of FCCM. Same Fidelity rulebook, much larger universe of stocks. The U.S. cycle that rewarded mega-cap growth and AI leaders has been extraordinarily kind to U.S. momentum.
Not financial advice. Fund details change. Check current disclosures before buying.
What FCMO actually is
FCMO is an ETF listed on the TSX (CAD-denominated, unhedged) and managed by Fidelity. Same strategic-beta logic as FCCM: a rules-based momentum screen ranks U.S. stocks on 6- and 12-month price strength and the highest scorers get weighted up. Quarterly rebalance.
| Attribute | Value |
|---|---|
| Ticker | FCMO (Cboe Canada) |
| Inception | June 5, 2020 |
| Asset mix | U.S. equities, CAD unhedged |
| MER | 0.37% |
| Strategy | Strategic beta, momentum |
| Currency | CAD (underlying USD exposure) |
| Net assets | about $1,987.5M (May 2026) |
| 3-year annualized return | 31.8% (through May 19, 2026) |
What FCMO holds
Almost entirely U.S. equity. A small international sleeve picks up multinational dual listings.
The U.S. momentum universe is dominated by mega-cap tech and AI leaders right now. The screen pulled those names in heavily over the last three years, which is why returns have been so strong. When leadership rotates, the holdings rotate too.
The fee
FCMO’s MER is 0.37%. A broad U.S. equity ETF available in Canada like XUU charges roughly 0.07%. The premium pays for the momentum rules.
That fee gap is roughly 0.30% per year. Over a decade, on a meaningful portfolio, it adds up.
How the U.S. momentum strategy works
Same logic as FCCM, applied to the U.S. universe. The bigger pool of stocks means more diversification (a U.S. momentum portfolio has about 150 names; a Canadian one is closer to 40) and a stronger historical premium.
Tax treatment
How FCMO compares to alternatives
- FCMO vs XUU. Cap-weighted U.S. equity at 0.07% vs FCMO at 0.37%. Three-year window has rewarded momentum. The longer history is less clean.
- FCMO vs MTUM (U.S.-listed). MTUM is the original iShares MSCI USA Momentum Factor ETF, U.S.-listed and USD-denominated. Same factor exposure, much cheaper at 0.15%, but you would need a USD account and would handle foreign tax treatment yourself. FCMO is the CAD-friendly wrapper.
- FCMO vs FCVH. Momentum vs value, both on U.S. equity. Different tilts on the same pool. Some investors hold both.
Frequently asked questions
What is FCMO.TO?
FCMO is the ticker for Fidelity U.S. Momentum ETF. It is a rules-based strategic-beta ETF that owns U.S. stocks showing the strongest recent price momentum, rebalanced quarterly. It is CAD-denominated and unhedged, so currency exposure is part of the return.
What is FCMO’s MER?
FCMO’s MER is 0.37%. That is more than a broad U.S. equity index ETF (around 0.07%) but reasonable for a factor-tilted strategy.
What does FCMO hold?
FCMO holds about 150 U.S. equities scoring highest on a momentum signal, with a small international sleeve from dual-listed names. The mix shifts quarterly as leadership rotates.
Is FCMO actively managed?
FCMO is strategic beta. Rules-based, not discretionary.
Where should I hold FCMO?
For Canadians, the most tax-efficient home is an RRSP, because the U.S.-Canada tax treaty exempts U.S. dividend withholding inside an RRSP but not inside a TFSA. The structure of FCMO (a CAD ETF holding U.S. stocks directly or via underlyings) means the withholding question still applies.
Has FCMO beaten the S&P 500?
Yes, over the three years through May 2026. The 31.8% annualized return is well above the S&P 500’s roughly 18% over the same window. Whether that continues depends on whether mega-cap U.S. leadership keeps concentrating or starts broadening.
What happens if momentum reverses?
A sharp reversal (sudden rotation from winners to losers) typically produces an underperformance period of several months while the quarterly rebalance catches up to the new leaders. The 2022 first-half drawdown was an example: leaders flipped fast, and momentum funds gave back relative ground.
The honest verdict
Bottom line
FCMO is the strongest factor performer on Morningstar’s recent screen of newer Canadian ETFs. The U.S. cycle has been kind to momentum and the strategy has run with it. The question is not whether FCMO works, but whether the conditions that made it work are likely to persist. Treat it as a tilt on top of a broad core, hold it in an RRSP if you can, and expect a chunk of recent outperformance to give back when leadership rotates.
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