This is a multifactor ETF that tracks the Fidelis Multi-Cap Multifactor Index. It holds about 100 stocks with high quality, value and momentum scores, spanning large caps to small and mid caps, and maintains a diversified portfolio that avoids concentration in any particular industry.

It suits investors who want factor-based selection and a value-oriented investment philosophy rather than a single index.

It is an actively managed ETF run by Inspire.

The fund scores stocks on three factors (quality, value and momentum), selects about 100 of them, and holds them by replication in line with the index weights. It gives priority to a set allocation in large caps while also including small and mid caps to cover the market-cap spectrum, and it is designed to avoid concentration in any particular industry.

• Selection combining multiple factors
• Multi-cap diversification
• Reflects a faith-based investment philosophy

Assets under management (AUM) are $243.1M, and the total expense ratio is 0.66% per year.

Differences in management fees and selection criteria compared with similar active and factor ETFs are the key comparison points.

Given the nature of a multifactor strategy, the leading factor changes with market conditions, and the performance trend fluctuates as well. Because value and momentum exposures work together, sources of volatility tend to be more dispersed than in single-factor ETFs.

Steady demand for factor-based and value-oriented ETFs underpins fund flows. During volatile markets, interest in diversified multifactor products can become relatively more pronounced, and the fund's asset size falls in the small-to-mid-sized category compared with large peer ETFs.

Its strengths are the combination of multiple factors and multi-cap diversification; its weaknesses are the cost burden that comes with active management and a relatively small asset base.

Within the same active and factor category, the DYNF product shown in the table is a large-cap active ETF using factor rotation, the THRO product uses thematic rotation, the JMEE product emphasizes small and mid caps, and the ARKK product focuses on innovation growth themes, so each takes a different approach. For broader multifactor exposure, you can compare it with LRGF, a representative multifactor ETF. To narrow down to a single factor, you can also compare QUAL, which focuses on quality, and MTUM, which focuses on momentum.

Here are the points to review before investing in FDLS. Since this ETF combines multifactor selection with a value-oriented philosophy, it is wise to check the fees, asset size and factor exposure together.

If the chosen factors lose market leadership, relative performance may lag, and because the asset base is small, liquidity and bid-ask spreads require attention. The cost burden of active management also accumulates over a long holding period.

It is an ETF worth considering for investors who want factor-based selection and a value-oriented philosophy beyond tracking a single index. Review its costs and asset size, and if broad core exposure is your priority, it is advisable to compare it with large multifactor ETFs.