FDSCX vs. FESM

Last updated Jun 4, 2026

FDSCX (Fidelity Stock Selector Small Cap Fund) and FESM (Fidelity Enhanced Small Cap ETF) are both Small Cap Blend Equities funds from Fidelity. Over the past year, FDSCX returned 38.89% vs 46.73% for FESM. Their correlation of 0.95 suggests significant overlap in exposure. FDSCX charges 0.90%/yr vs 0.28%/yr for FESM.

Performance

FDSCX vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Stock Selector Small Cap Fund (FDSCX) 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, FDSCX achieves a 15.95% return, which is significantly lower than FESM's 19.64% return.

FDSCX

• 1D: 0.84%
• 1M: 1.01%
• YTD: 15.95%
• 6M: 14.53%
• 1Y: 38.89%
• 3Y*: 19.79%
• 5Y*: 9.93%
• 10Y*: 12.84%

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)

FDSCX vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FDSCX Fidelity Stock Selector Small Cap Fund	15.95%	14.33%	14.51%	12.71%
FESM Fidelity Enhanced Small Cap ETF	19.64%	17.88%	16.22%	12.19%

Correlation

The correlation between FDSCX and FESM is 0.93, 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	0.93
Correlation (All Time) Calculated using the full available price history since Nov 21, 2023	0.95

The correlation between FDSCX and FESM has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

Return for Risk

FDSCX vs. FESM — Risk / Return Rank

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

FDSCX

FDSCX Risk / Return Rank: 69
FDSCX Sharpe Ratio Rank: 62
FDSCX Sortino Ratio Rank: 60
FDSCX Omega Ratio Rank: 51
FDSCX Calmar Ratio Rank: 86
FDSCX Martin Ratio Rank: 84

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.

FDSCX vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Stock Selector Small Cap Fund (FDSCX) 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.

	FDSCX	FESM	Difference
Sharpe ratio: Return per unit of total volatility	2.32	2.48	-0.16
Sortino ratio: Return per unit of downside risk	3.27	3.34	-0.07
Omega ratio: Gain probability vs. loss probability	1.39	1.41	-0.01
Calmar ratio: Return relative to maximum drawdown	4.12	4.61	-0.49
Martin ratio: Return relative to average drawdown	16.04	16.60	-0.55
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FDSCX vs. FESM - Sharpe Ratio Comparison

The current FDSCX Sharpe Ratio is 2.32, which is comparable to the FESM Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of FDSCX 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

	FDSCX	FESM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.32	2.48	-0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.42	1.29	-0.87

Drawdowns

FDSCX vs. FESM - Drawdown Comparison

The maximum FDSCX drawdown since its inception was -65.47%, which is greater than FESM's maximum drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for FDSCX and FESM.

Drawdown Indicators

	FDSCX	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-65.47%	-26.93%	-38.54%
Max Drawdown (1Y) Largest decline over 1 year	-10.04%	-10.18%	+0.14%
Max Drawdown (3Y) Largest decline over 3 years	-27.42%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.56%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-38.43%	—	—
Current Drawdown Current decline from peak	-1.74%	-1.59%	-0.15%
Average Drawdown Average peak-to-trough decline	-11.23%	-4.79%	-6.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.57%	2.82%	-0.25%

Volatility

FDSCX vs. FESM - Volatility Comparison

The current volatility for Fidelity Stock Selector Small Cap Fund (FDSCX) is 5.23%, while Fidelity Enhanced Small Cap ETF (FESM) has a volatility of 5.64%. This indicates that FDSCX 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

	FDSCX	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.23%	5.64%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	13.36%	13.32%	+0.04%
Volatility (1Y) Calculated over the trailing 1-year period	17.85%	18.98%	-1.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.63%	21.26%	+0.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.87%	21.26%	+0.61%

FDSCX vs. FESM - Expense Ratio Comparison

FDSCX has a 0.90% expense ratio, which is higher than FESM's 0.28% expense ratio.

Dividends

FDSCX vs. FESM - Dividend Comparison

FDSCX's dividend yield for the trailing twelve months is around 0.62%, more than FESM's 0.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDSCX Fidelity Stock Selector Small Cap Fund	0.62%	0.72%	2.71%	0.23%	0.12%	10.85%	1.40%	2.13%	22.39%	10.02%	1.63%	7.06%
FESM Fidelity Enhanced Small Cap ETF	0.53%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FDSCX and FESM in my portfolio?

With a correlation of 0.93, FDSCX 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, FDSCX or FESM?

FESM has higher volatility (5.64%) compared to FDSCX (5.23%). In terms of maximum drawdown, FDSCX dropped -65.47% vs FESM's -26.93%.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.48 vs 2.32), 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.