FCSH vs. ZTRE

Last updated Jun 24, 2026

FCSH (Federated Hermes Short Duration Corporate ETF) and ZTRE (F/M 3-Year Investment Grade Corporate Bond ETF) are both Short-Term Bond funds. FCSH is actively managed, while ZTRE is passively managed. Over the past year, FCSH returned 3.55% vs 3.73% for ZTRE. Their correlation of 0.86 suggests significant overlap in exposure. FCSH charges 0.30%/yr vs 0.15%/yr for ZTRE.

Performance

FCSH vs. ZTRE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Short Duration Corporate ETF (FCSH) and F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCSH achieves a 0.48% return, which is significantly lower than ZTRE's 0.53% return.

FCSH

• 1D: 0.08%
• 1M: 0.01%
• YTD: 0.48%
• 6M: 0.72%
• 1Y: 3.55%
• 3Y*: 5.13%
• 5Y*: —
• 10Y*: —

ZTRE

• 1D: 0.06%
• 1M: 0.31%
• YTD: 0.53%
• 6M: 0.91%
• 1Y: 3.73%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FCSH vs. ZTRE - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FCSH Federated Hermes Short Duration Corporate ETF	0.48%	6.42%	0.34%
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF	0.53%	6.60%	0.32%

Correlation

The correlation between FCSH and ZTRE is 0.82, 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	0.82
Correlation (All Time) Calculated using the full available price history since Dec 19, 2024	0.86

The correlation between FCSH and ZTRE has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

Return for Risk

FCSH vs. ZTRE — Risk / Return Rank

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

FCSH

FCSH Risk / Return Rank: 61
FCSH Sharpe Ratio Rank: 58
FCSH Sortino Ratio Rank: 65
FCSH Omega Ratio Rank: 62
FCSH Calmar Ratio Rank: 62
FCSH Martin Ratio Rank: 57

ZTRE

ZTRE Risk / Return Rank: 66
ZTRE Sharpe Ratio Rank: 66
ZTRE Sortino Ratio Rank: 75
ZTRE Omega Ratio Rank: 72
ZTRE Calmar Ratio Rank: 57
ZTRE Martin Ratio Rank: 62

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.

FCSH vs. ZTRE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Short Duration Corporate ETF (FCSH) and F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FCSH	ZTRE	Difference
Sharpe ratio: Return per unit of total volatility	1.80	1.98	-0.18
Sortino ratio: Return per unit of downside risk	2.76	3.05	-0.29
Omega ratio: Gain probability vs. loss probability	1.35	1.39	-0.04
Calmar ratio: Return relative to maximum drawdown	2.87	2.58	+0.29
Martin ratio: Return relative to average drawdown	9.34	10.28	-0.94

FCSH vs. ZTRE - Sharpe Ratio Comparison

The current FCSH Sharpe Ratio is 1.80, which is comparable to the ZTRE Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of FCSH and ZTRE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FCSH vs. ZTRE - Drawdown Comparison

The maximum FCSH drawdown since its inception was -8.47%, which is greater than ZTRE's maximum drawdown of -1.45%. Use the drawdown chart below to compare losses from any high point for FCSH and ZTRE.

Drawdown Indicators

	FCSH	ZTRE	Difference
Max Drawdown Largest peak-to-trough decline	-8.47%	-1.45%	-7.02%
Max Drawdown (1Y) Largest decline over 1 year	-1.24%	-1.45%	+0.21%
Max Drawdown (3Y) Largest decline over 3 years	-1.32%	—	—
Current Drawdown Current decline from peak	-0.66%	-0.28%	-0.38%
Average Drawdown Average peak-to-trough decline	-2.19%	-0.20%	-1.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.38%	0.36%	+0.02%

Volatility

FCSH vs. ZTRE - Volatility Comparison

Federated Hermes Short Duration Corporate ETF (FCSH) has a higher volatility of 0.65% compared to F/M 3-Year Investment Grade Corporate Bond ETF (ZTRE) at 0.59%. This indicates that FCSH's price experiences larger fluctuations and is considered to be riskier than ZTRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCSH	ZTRE	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.65%	0.59%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	1.58%	1.47%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	1.98%	1.90%	+0.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.89%	2.11%	+0.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.89%	2.11%	+0.78%

FCSH vs. ZTRE - Expense Ratio Comparison

FCSH has a 0.30% expense ratio, which is higher than ZTRE's 0.15% expense ratio.

Dividends

FCSH vs. ZTRE - Dividend Comparison

FCSH's dividend yield for the trailing twelve months is around 4.09%, less than ZTRE's 4.22% yield.

Position	TTM	2025	2024	2023	2022	2021
FCSH Federated Hermes Short Duration Corporate ETF	4.09%	4.14%	4.44%	2.31%	1.76%	0.04%
ZTRE F/M 3-Year Investment Grade Corporate Bond ETF	4.22%	4.37%	0.39%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FCSH and ZTRE in my portfolio?

FCSH and ZTRE have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FCSH or ZTRE?

FCSH has higher volatility (0.65%) compared to ZTRE (0.59%). In terms of maximum drawdown, FCSH dropped -8.47% vs ZTRE's -1.45%.

Which ETF is better, FCSH or ZTRE?

On 1-year performance, ZTRE leads with 3.73% vs 3.55% for FCSH. On fees, ZTRE is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FCSH or ZTRE?

Over the 1-year period, ZTRE has performed better with a 3.73% return vs 3.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCSH or ZTRE?

ZTRE is cheaper with a 0.15% expense ratio, compared with 0.30% for FCSH.

Which ETF pays a higher dividend yield, FCSH or ZTRE?

ZTRE has the higher dividend yield at 4.22%, compared with 4.09% for FCSH.

What is the main difference between FCSH and ZTRE?

They also come from different issuers: Federated and F/m. Their fees differ too: 0.30% for FCSH and 0.15% for ZTRE.

Which has better risk-adjusted returns?

ZTRE currently has the higher Sharpe Ratio (1.98 vs 1.80), 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.