DES vs. HSMV

Last updated Jun 3, 2026

DES (WisdomTree U.S. SmallCap Dividend Fund) and HSMV (First Trust Horizon Managed Volatility Small/Mid ETF) are both Small Cap Blend Equities funds. DES is passively managed, while HSMV is actively managed. Over the past 5 years, DES returned 6.21%/yr vs 3.86%/yr for HSMV. Their correlation of 0.91 suggests significant overlap in exposure. DES charges 0.38%/yr vs 0.80%/yr for HSMV.

Performance

DES vs. HSMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree U.S. SmallCap Dividend Fund (DES) and First Trust Horizon Managed Volatility Small/Mid ETF (HSMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DES achieves a 16.63% return, which is significantly higher than HSMV's 3.62% return.

DES

• 1D: 0.99%
• 1M: 0.53%
• YTD: 16.63%
• 6M: 17.07%
• 1Y: 28.87%
• 3Y*: 14.65%
• 5Y*: 6.21%
• 10Y*: 8.17%

HSMV

• 1D: 0.68%
• 1M: -2.40%
• YTD: 3.62%
• 6M: 3.66%
• 1Y: 5.31%
• 3Y*: 8.54%
• 5Y*: 3.86%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

DES vs. HSMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
DES WisdomTree U.S. SmallCap Dividend Fund	16.63%	0.25%	9.93%	16.50%	-10.96%	26.51%	53.35%
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	3.62%	1.57%	13.17%	5.01%	-9.44%	23.72%	34.70%

Correlation

The correlation between DES and HSMV is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Apr 8, 2020	0.91

The correlation between DES and HSMV has been stable across timeframes, ranging from 0.84 to 0.91 - a consistent structural relationship.

DES vs. HSMV - Sectors Allocation Comparison

Sectors	DES	HSMV
Financial Services	23.7%	16.6%
Consumer Cyclical	14.8%	7.8%
Industrials	13.3%	15.0%
Energy	10.7%	2.8%
Real Estate	9.6%	23.8%
Basic Materials	6.0%	5.4%
Technology	5.5%	1.7%
Utilities	4.6%	11.9%
Consumer Defensive	4.3%	7.9%
Communication Services	2.8%	2.3%
Healthcare	1.7%	4.9%

Return for Risk

DES vs. HSMV — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DES

DES Risk / Return Rank: 57
DES Sharpe Ratio Rank: 51
DES Sortino Ratio Rank: 54
DES Omega Ratio Rank: 49
DES Calmar Ratio Rank: 72
DES Martin Ratio Rank: 59

HSMV

HSMV Risk / Return Rank: 17
HSMV Sharpe Ratio Rank: 17
HSMV Sortino Ratio Rank: 17
HSMV Omega Ratio Rank: 16
HSMV Calmar Ratio Rank: 16
HSMV Martin Ratio Rank: 17

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DES vs. HSMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree U.S. SmallCap Dividend Fund (DES) and First Trust Horizon Managed Volatility Small/Mid ETF (HSMV). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	DES	HSMV	Difference
Sharpe ratio Return per unit of total volatility	1.77	0.51	+1.25
Sortino ratio Return per unit of downside risk	2.64	0.83	+1.80
Omega ratio Gain probability vs. loss probability	1.31	1.09	+0.22
Calmar ratio Return relative to maximum drawdown	3.67	0.60	+3.07
Martin ratio Return relative to average drawdown	10.48	1.84	+8.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DES vs. HSMV - Sharpe Ratio Comparison

The current DES Sharpe Ratio is 1.77, which is higher than the HSMV Sharpe Ratio of 0.51. The chart below compares the historical Sharpe Ratios of DES and HSMV, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DES	HSMV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.77	0.51	+1.25
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.32	0.26	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.68	-0.36

Drawdowns

DES vs. HSMV - Drawdown Comparison

The maximum DES drawdown since its inception was -65.48%, which is greater than HSMV's maximum drawdown of -19.16%. Use the drawdown chart below to compare losses from any high point for DES and HSMV.

Drawdown Indicators

	DES	HSMV	Difference
Max Drawdown Largest peak-to-trough decline	-65.48%	-19.16%	-46.32%
Max Drawdown (1Y) Largest decline over 1 year	-7.64%	-7.83%	+0.19%
Max Drawdown (3Y) Largest decline over 3 years	-25.16%	-15.45%	-9.71%
Max Drawdown (5Y) Largest decline over 5 years	-25.16%	-19.16%	-6.00%
Max Drawdown (10Y) Largest decline over 10 years	-45.65%	—	—
Current Drawdown Current decline from peak	-0.28%	-3.89%	+3.61%
Average Drawdown Average peak-to-trough decline	-9.68%	-5.62%	-4.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	2.57%	+0.11%

Volatility

DES vs. HSMV - Volatility Comparison

WisdomTree U.S. SmallCap Dividend Fund (DES) has a higher volatility of 4.24% compared to First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) at 2.91%. This indicates that DES's price experiences larger fluctuations and is considered to be riskier than HSMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DES	HSMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.24%	2.91%	+1.33%
Volatility (6M) Calculated over the trailing 6-month period	10.94%	7.28%	+3.66%
Volatility (1Y) Calculated over the trailing 1-year period	16.42%	10.37%	+6.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.56%	15.00%	+4.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.97%	16.06%	+5.91%

DES vs. HSMV - Expense Ratio Comparison

DES has a 0.38% expense ratio, which is lower than HSMV's 0.80% expense ratio.

Dividends

DES vs. HSMV - Dividend Comparison

DES's dividend yield for the trailing twelve months is around 2.37%, more than HSMV's 1.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DES WisdomTree U.S. SmallCap Dividend Fund	2.37%	2.85%	2.81%	2.65%	2.89%	2.31%	2.75%	2.68%	3.65%	2.89%	2.70%	3.09%
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	1.99%	2.01%	1.43%	1.43%	1.26%	0.76%	0.80%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DES and HSMV in my portfolio?

DES and HSMV have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DES or HSMV?

DES has higher volatility (4.24%) compared to HSMV (2.91%). In terms of maximum drawdown, DES dropped -65.48% vs HSMV's -19.16%.

Which ETF is better, DES or HSMV?

On 5-year performance, DES leads with 6.21% vs 3.86% for HSMV. On fees, DES is cheaper at 0.38% per year. On volatility, HSMV has been the lower-risk option at 2.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DES or HSMV?

Over the 5-year period, DES has performed better with a 6.21% return vs 3.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DES or HSMV?

DES is cheaper with a 0.38% expense ratio, compared with 0.80% for HSMV.

Which ETF pays a higher dividend yield, DES or HSMV?

DES has the higher dividend yield at 2.37%, compared with 1.99% for HSMV.

What is the main difference between DES and HSMV?

They also come from different issuers: WisdomTree and First Trust. Their fees differ too: 0.38% for DES and 0.80% for HSMV.

Which has better risk-adjusted returns?

DES currently has the higher Sharpe Ratio (1.77 vs 0.51), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.