FEDM vs. ESMV
FEDM (FlexShares ESG & Climate Developed Markets ex-US Core Index Fund) and ESMV (iShares ESG MSCI USA Min Vol Factor ETF) are both exchange-traded funds - FEDM is a Foreign Large Cap Equities fund tracking the Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net, while ESMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, FEDM returned 13.99%/yr vs 11.27%/yr for ESMV. A 0.63 correlation means they provide meaningful diversification when combined. FEDM charges 0.12%/yr vs 0.18%/yr for ESMV.
Performance
FEDM vs. ESMV - Performance Comparison
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Returns By Period
In the year-to-date period, FEDM achieves a 6.03% return, which is significantly higher than ESMV's 5.28% return.
FEDM
- 1D
- -0.91%
- 1M
- 3.29%
- YTD
- 6.03%
- 6M
- 8.22%
- 1Y
- 16.39%
- 3Y*
- 13.99%
- 5Y*
- —
- 10Y*
- —
ESMV
- 1D
- -0.78%
- 1M
- 3.36%
- YTD
- 5.28%
- 6M
- 5.39%
- 1Y
- 6.76%
- 3Y*
- 11.27%
- 5Y*
- —
- 10Y*
- —
FEDM vs. ESMV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund | 6.03% | 26.85% | 2.85% | 17.39% | -15.25% | -1.38% |
ESMV iShares ESG MSCI USA Min Vol Factor ETF | 5.28% | 5.34% | 13.06% | 12.20% | -11.08% | 3.20% |
Correlation
The correlation between FEDM and ESMV is 0.55, 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 | 0.55 |
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 FEDM and ESMV has been stable across timeframes, ranging from 0.55 to 0.63 - a consistent structural relationship.
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Return for Risk
FEDM vs. ESMV — Risk / Return Rank
FEDM
ESMV
FEDM vs. ESMV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) and iShares ESG MSCI USA Min Vol Factor ETF (ESMV). 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.
| FEDM | ESMV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.35 | ||
| Sortino ratioReturn per unit of downside risk | +0.55 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.13 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 1.38 | 0.97 | +0.41 |
| Martin ratioReturn relative to average drawdown | 4.97 | 2.97 | +2.00 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FEDM | ESMV | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.02 | 0.67 | +0.35 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.44 | +0.02 |
Drawdowns
FEDM vs. ESMV - Drawdown Comparison
The maximum FEDM drawdown since its inception was -29.37%, which is greater than ESMV's maximum drawdown of -19.77%. Use the drawdown chart below to compare losses from any high point for FEDM and ESMV.
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Drawdown Indicators
| FEDM | ESMV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.37% | -19.77% | -9.60% |
Max Drawdown (1Y)Largest decline over 1 year | -11.92% | -7.01% | -4.91% |
Max Drawdown (3Y)Largest decline over 3 years | -14.24% | -12.16% | -2.08% |
Current DrawdownCurrent decline from peak | -2.01% | -0.78% | -1.23% |
Average DrawdownAverage peak-to-trough decline | -6.99% | -5.33% | -1.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.30% | 2.28% | +1.02% |
Volatility
FEDM vs. ESMV - Volatility Comparison
FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) has a higher volatility of 4.78% compared to iShares ESG MSCI USA Min Vol Factor ETF (ESMV) at 2.25%. This indicates that FEDM's price experiences larger fluctuations and is considered to be riskier than ESMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FEDM | ESMV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.78% | 2.25% | +2.53% |
Volatility (6M)Calculated over the trailing 6-month period | 12.44% | 6.26% | +6.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 16.14% | 10.06% | +6.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.46% | 13.24% | +3.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.46% | 13.24% | +3.22% |
FEDM vs. ESMV - Expense Ratio Comparison
FEDM has a 0.12% expense ratio, which is lower than ESMV's 0.18% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
FEDM vs. ESMV - Dividend Comparison
FEDM's dividend yield for the trailing twelve months is around 2.82%, more than ESMV's 1.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|
ESMV iShares ESG MSCI USA Min Vol Factor ETF | 1.58% | 1.56% | 1.71% | 1.75% | 1.66% | 0.24% |
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund | 2.82% | 2.97% | 2.94% | 2.61% | 2.53% | 0.62% |
Frequently Asked Questions
FEDM and ESMV have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FEDM has higher volatility (4.78%) compared to ESMV (2.25%). In terms of maximum drawdown, FEDM dropped -29.37% vs ESMV's -19.77%.
On 3-year performance, FEDM leads with 13.99% vs 11.27% for ESMV. On fees, FEDM is cheaper at 0.12% per year. On volatility, ESMV has been the lower-risk option at 2.25%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, FEDM has performed better with a 13.99% return vs 11.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FEDM is cheaper with a 0.12% expense ratio, compared with 0.18% for ESMV.
FEDM has the higher dividend yield at 2.82%, compared with 1.58% for ESMV.
FEDM is categorized as Foreign Large Cap Equities, while ESMV is Large Cap Blend Equities. FEDM tracks Northern Trust ESG & Climate Developed Markets ex-US Core Index - Benchmark TR Net, while ESMV tracks MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross. They also come from different issuers: FlexShares and iShares. Their fees differ too: 0.12% for FEDM and 0.18% for ESMV.
FEDM currently has the higher Sharpe Ratio (1.02 vs 0.67), 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.
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