ESMV vs. FEDM

Last updated Jun 3, 2026

ESMV (iShares ESG MSCI USA Min Vol Factor ETF) and FEDM (FlexShares ESG & Climate Developed Markets ex-US Core Index Fund) are both exchange-traded funds - ESMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross, while FEDM is a Foreign Large Cap Equities fund tracking the Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net. Both are passively managed. Over the past 3 years, ESMV returned 11.56%/yr vs 14.34%/yr for FEDM. A 0.63 correlation means they provide meaningful diversification when combined. ESMV charges 0.18%/yr vs 0.12%/yr for FEDM.

Performance

ESMV vs. FEDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI USA Min Vol Factor ETF (ESMV) and FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESMV achieves a 6.11% return, which is significantly lower than FEDM's 7.01% return.

ESMV

• 1D: 0.28%
• 1M: 3.87%
• YTD: 6.11%
• 6M: 6.58%
• 1Y: 7.91%
• 3Y*: 11.56%
• 5Y*: —
• 10Y*: —

FEDM

• 1D: 0.58%
• 1M: 3.05%
• YTD: 7.01%
• 6M: 9.66%
• 1Y: 16.51%
• 3Y*: 14.34%
• 5Y*: —
• 10Y*: —

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

ESMV vs. FEDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
ESMV iShares ESG MSCI USA Min Vol Factor ETF	6.11%	5.34%	13.06%	12.20%	-11.08%	3.20%
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	7.01%	26.85%	2.85%	17.39%	-15.25%	-1.38%

Correlation

The correlation between ESMV and FEDM is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (All Time) Calculated using the full available price history since Nov 5, 2021	0.63

The correlation between ESMV and FEDM has been stable across timeframes, ranging from 0.54 to 0.63 - a consistent structural relationship.

Return for Risk

ESMV vs. FEDM — Risk / Return Rank

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

ESMV

ESMV Risk / Return Rank: 23
ESMV Sharpe Ratio Rank: 23
ESMV Sortino Ratio Rank: 22
ESMV Omega Ratio Rank: 23
ESMV Calmar Ratio Rank: 24
ESMV Martin Ratio Rank: 25

FEDM

FEDM Risk / Return Rank: 30
FEDM Sharpe Ratio Rank: 28
FEDM Sortino Ratio Rank: 28
FEDM Omega Ratio Rank: 28
FEDM Calmar Ratio Rank: 30
FEDM Martin Ratio Rank: 34

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.

ESMV vs. FEDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) and FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM). 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.

	ESMV	FEDM	Difference
Sharpe ratio Return per unit of total volatility	0.79	1.03	-0.24
Sortino ratio Return per unit of downside risk	1.16	1.56	-0.40
Omega ratio Gain probability vs. loss probability	1.15	1.19	-0.04
Calmar ratio Return relative to maximum drawdown	1.14	1.49	-0.35
Martin ratio Return relative to average drawdown	3.51	5.38	-1.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESMV vs. FEDM - Sharpe Ratio Comparison

The current ESMV Sharpe Ratio is 0.79, which is comparable to the FEDM Sharpe Ratio of 1.03. The chart below compares the historical Sharpe Ratios of ESMV and FEDM, 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

	ESMV	FEDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.79	1.03	-0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.47	-0.02

Drawdowns

ESMV vs. FEDM - Drawdown Comparison

The maximum ESMV drawdown since its inception was -19.77%, smaller than the maximum FEDM drawdown of -29.37%. Use the drawdown chart below to compare losses from any high point for ESMV and FEDM.

Drawdown Indicators

	ESMV	FEDM	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-29.37%	+9.60%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-11.92%	+4.91%
Max Drawdown (3Y) Largest decline over 3 years	-12.16%	-14.24%	+2.08%
Current Drawdown Current decline from peak	0.00%	-1.10%	+1.10%
Average Drawdown Average peak-to-trough decline	-5.33%	-7.00%	+1.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	3.30%	-1.02%

Volatility

ESMV vs. FEDM - Volatility Comparison

The current volatility for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) is 2.08%, while FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) has a volatility of 4.84%. This indicates that ESMV experiences smaller price fluctuations and is considered to be less risky than FEDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESMV	FEDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.08%	4.84%	-2.76%
Volatility (6M) Calculated over the trailing 6-month period	6.27%	12.42%	-6.15%
Volatility (1Y) Calculated over the trailing 1-year period	10.03%	16.14%	-6.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.24%	16.46%	-3.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.24%	16.46%	-3.22%

ESMV vs. FEDM - Expense Ratio Comparison

ESMV has a 0.18% expense ratio, which is higher than FEDM's 0.12% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

ESMV vs. FEDM - Dividend Comparison

ESMV's dividend yield for the trailing twelve months is around 1.57%, less than FEDM's 2.80% yield.

Position	TTM	2025	2024	2023	2022	2021
ESMV iShares ESG MSCI USA Min Vol Factor ETF	1.57%	1.56%	1.71%	1.75%	1.66%	0.24%
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	2.80%	2.97%	2.94%	2.61%	2.53%	0.62%

Frequently Asked Questions

Can I hold both ESMV and FEDM in my portfolio?

ESMV and FEDM have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESMV or FEDM?

FEDM has higher volatility (4.84%) compared to ESMV (2.08%). In terms of maximum drawdown, ESMV dropped -19.77% vs FEDM's -29.37%.

Which ETF is better, ESMV or FEDM?

On 3-year performance, FEDM leads with 14.34% vs 11.56% for ESMV. On fees, FEDM is cheaper at 0.12% per year. On volatility, ESMV has been the lower-risk option at 2.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESMV or FEDM?

Over the 3-year period, FEDM has performed better with a 14.34% return vs 11.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESMV or FEDM?

FEDM is cheaper with a 0.12% expense ratio, compared with 0.18% for ESMV.

Which ETF pays a higher dividend yield, ESMV or FEDM?

FEDM has the higher dividend yield at 2.80%, compared with 1.57% for ESMV.

What is the main difference between ESMV and FEDM?

ESMV is categorized as Large Cap Blend Equities, while FEDM is Foreign Large Cap Equities. ESMV tracks MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross, while FEDM tracks Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net. They also come from different issuers: iShares and FlexShares. Their fees differ too: 0.18% for ESMV and 0.12% for FEDM.

Which has better risk-adjusted returns?

FEDM currently has the higher Sharpe Ratio (1.03 vs 0.79), 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.