DFAS vs. FESM

Last updated Jun 4, 2026

DFAS (Dimensional U.S. Small Cap ETF) and FESM (Fidelity Enhanced Small Cap ETF) are both Small Cap Blend Equities funds. Both are actively managed. Over the past year, DFAS returned 27.65% vs 46.73% for FESM. With a 0.96 correlation, they move nearly in lockstep. DFAS charges 0.34%/yr vs 0.28%/yr for FESM.

Performance

DFAS vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional U.S. Small Cap ETF (DFAS) and Fidelity Enhanced Small Cap ETF (FESM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFAS achieves a 12.81% return, which is significantly lower than FESM's 19.64% return.

DFAS

• 1D: -0.81%
• 1M: 2.19%
• YTD: 12.81%
• 6M: 12.10%
• 1Y: 27.65%
• 3Y*: 15.22%
• 5Y*: —
• 10Y*: —

FESM

• 1D: -1.51%
• 1M: 3.13%
• YTD: 19.64%
• 6M: 19.11%
• 1Y: 46.73%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DFAS vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
DFAS Dimensional U.S. Small Cap ETF	12.81%	8.17%	10.21%	11.16%
FESM Fidelity Enhanced Small Cap ETF	19.64%	17.88%	16.22%	12.19%

Correlation

The correlation between DFAS and FESM is 0.94, 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	0.94
Correlation (All Time) Calculated using the full available price history since Nov 21, 2023	0.96

The correlation between DFAS and FESM has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

DFAS vs. FESM - Sectors Allocation Comparison

Sectors	DFAS	FESM
Financial Services	19.5%	14.8%
Industrials	18.6%	19.1%
Technology	15.0%	21.6%
Consumer Cyclical	11.9%	7.4%
Healthcare	11.0%	15.7%
Energy	6.7%	7.2%
Basic Materials	5.6%	3.5%
Consumer Defensive	4.3%	1.4%
Utilities	3.8%	2.0%
Communication Services	2.8%	3.1%
Real Estate	0.2%	4.2%

Return for Risk

DFAS vs. FESM — Risk / Return Rank

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

DFAS

DFAS Risk / Return Rank: 51
DFAS Sharpe Ratio Rank: 47
DFAS Sortino Ratio Rank: 49
DFAS Omega Ratio Rank: 45
DFAS Calmar Ratio Rank: 59
DFAS Martin Ratio Rank: 57

FESM

FESM Risk / Return Rank: 76
FESM Sharpe Ratio Rank: 75
FESM Sortino Ratio Rank: 72
FESM Omega Ratio Rank: 66
FESM Calmar Ratio Rank: 84
FESM Martin Ratio Rank: 82

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.

DFAS vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional U.S. Small Cap ETF (DFAS) and Fidelity Enhanced Small Cap ETF (FESM). 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.

	DFAS	FESM	Difference
Sharpe ratio: Return per unit of total volatility	1.66	2.48	-0.82
Sortino ratio: Return per unit of downside risk	2.46	3.34	-0.89
Omega ratio: Gain probability vs. loss probability	1.29	1.41	-0.12
Calmar ratio: Return relative to maximum drawdown	2.97	4.61	-1.64
Martin ratio: Return relative to average drawdown	10.17	16.60	-6.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFAS vs. FESM - Sharpe Ratio Comparison

The current DFAS Sharpe Ratio is 1.66, which is lower than the FESM Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of DFAS and FESM, 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

	DFAS	FESM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.66	2.48	-0.82
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	1.29	-0.93

Drawdowns

DFAS vs. FESM - Drawdown Comparison

The maximum DFAS drawdown since its inception was -26.13%, roughly equal to the maximum FESM drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for DFAS and FESM.

Drawdown Indicators

	DFAS	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-26.13%	-26.93%	+0.80%
Max Drawdown (1Y) Largest decline over 1 year	-9.36%	-10.18%	+0.82%
Max Drawdown (3Y) Largest decline over 3 years	-26.13%	—	—
Current Drawdown Current decline from peak	-0.81%	-1.59%	+0.78%
Average Drawdown Average peak-to-trough decline	-8.31%	-4.79%	-3.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.73%	2.82%	-0.09%

Volatility

DFAS vs. FESM - Volatility Comparison

The current volatility for Dimensional U.S. Small Cap ETF (DFAS) is 4.31%, while Fidelity Enhanced Small Cap ETF (FESM) has a volatility of 5.64%. This indicates that DFAS experiences smaller price fluctuations and is considered to be less risky than FESM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFAS	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	5.64%	-1.33%
Volatility (6M) Calculated over the trailing 6-month period	11.58%	13.32%	-1.74%
Volatility (1Y) Calculated over the trailing 1-year period	16.77%	18.98%	-2.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.84%	21.26%	-0.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.84%	21.26%	-0.42%

DFAS vs. FESM - Expense Ratio Comparison

DFAS has a 0.34% expense ratio, which is higher than FESM's 0.28% expense ratio.

Dividends

DFAS vs. FESM - Dividend Comparison

DFAS's dividend yield for the trailing twelve months is around 0.92%, more than FESM's 0.53% yield.

Position	TTM	2025	2024	2023	2022	2021
DFAS Dimensional U.S. Small Cap ETF	0.92%	0.99%	0.93%	1.00%	1.03%	2.87%
FESM Fidelity Enhanced Small Cap ETF	0.53%	0.82%	1.08%	0.06%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFAS and FESM in my portfolio?

With a correlation of 0.94, DFAS and FESM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, DFAS or FESM?

FESM has higher volatility (5.64%) compared to DFAS (4.31%). In terms of maximum drawdown, DFAS dropped -26.13% vs FESM's -26.93%.

Which ETF is better, DFAS or FESM?

On 1-year performance, FESM leads with 46.73% vs 27.65% for DFAS. On fees, FESM is cheaper at 0.28% per year. On volatility, DFAS has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFAS or FESM?

Over the 1-year period, FESM has performed better with a 46.73% return vs 27.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFAS or FESM?

FESM is cheaper with a 0.28% expense ratio, compared with 0.34% for DFAS.

Which ETF pays a higher dividend yield, DFAS or FESM?

DFAS has the higher dividend yield at 0.92%, compared with 0.53% for FESM.

What is the main difference between DFAS and FESM?

They also come from different issuers: Dimensional and Fidelity. Their fees differ too: 0.34% for DFAS and 0.28% for FESM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.48 vs 1.66), 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.