FEDM vs. MCSE

Last updated Aug 4, 2026

FEDM (FlexShares ESG & Climate Developed Markets ex-US Core Index Fund) and MCSE (Franklin Sustainable International Equity ETF) are both Foreign Large Cap Equities funds. FEDM is passively managed, while MCSE is actively managed. Over the past 3 years, FEDM returned 15.57%/yr vs 0.74%/yr for MCSE. Their 0.73 correlation means they have sometimes moved together and sometimes differently. FEDM charges 0.12%/yr vs 0.59%/yr for MCSE.

Performance

FEDM vs. MCSE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) and Franklin Sustainable International Equity ETF (MCSE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEDM achieves a 11.29% return, which is significantly higher than MCSE's 1.12% return.

FEDM

• 1D: 0.22%
• 1M: 3.09%
• 6M: 6.36%
• YTD: 11.29%
• 1Y: 23.54%
• 3Y*: 15.57%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 8.18%

MCSE

• 1D: 0.00%
• 1M: 0.00%
• 6M: 0.00%
• YTD: 1.12%
• 1Y: 4.30%
• 3Y*: 0.74%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.06%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	$59.63K	$72.04K	$75.32K
MCSE Franklin Sustainable International Equity ETF	$0.00	$0.00	$0.00

FEDM vs. MCSE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	11.29%	26.85%	2.85%	17.39%	9.42%
MCSE Franklin Sustainable International Equity ETF	1.12%	7.79%	-9.46%	14.86%	10.04%

Correlation

The correlation between FEDM and MCSE is 0.42, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.42
Correlation (3Y) Balances recent behavior with more history.	0.69
Correlation (All Time) Calculated using the full available price history since Oct 31, 2022	0.73

Over the past year, the correlation between FEDM and MCSE has dropped to 0.42 - well below their long-term average of 0.73, suggesting their price drivers have been diverging.

FEDM vs. MCSE - Sectors Allocation Comparison

Sectors	FEDM	MCSE
Financial Services	28.7%	2.1%
Industrials	16.9%	18.1%
Technology	11.1%	31.1%
Healthcare	9.1%	20.1%
Consumer Defensive	6.5%	5.0%
Basic Materials	6.4%	5.1%
Energy	5.6%	-
Consumer Cyclical	5.4%	13.8%
Communication Services	3.3%	4.7%
Utilities	3.2%	-
Real Estate	1.7%	-

Return for Risk

FEDM vs. MCSE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FEDM

FEDM Risk / Return Rank: 56
FEDM Sharpe Ratio Rank: 57
FEDM Sortino Ratio Rank: 58
FEDM Omega Ratio Rank: 56
FEDM Calmar Ratio Rank: 53
FEDM Martin Ratio Rank: 57

MCSE

MCSE Risk / Return Rank: 20
MCSE Sharpe Ratio Rank: 20
MCSE Sortino Ratio Rank: 19
MCSE Omega Ratio Rank: 24
MCSE Calmar Ratio Rank: 18
MCSE Martin Ratio Rank: 18

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FEDM vs. MCSE - 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 Franklin Sustainable International Equity ETF (MCSE). 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.

	FEDM	MCSE	Difference
Sharpe ratio: Return per unit of total volatility	1.43	0.46	+0.97
Sortino ratio: Return per unit of downside risk	2.08	0.70	+1.39
Omega ratio: Gain probability vs. loss probability	1.26	1.12	+0.14
Calmar ratio: Return relative to maximum drawdown	1.98	0.45	+1.53
Martin ratio: Return relative to average drawdown	7.24	1.13	+6.11

FEDM vs. MCSE - Sharpe Ratio Comparison

The current FEDM Sharpe Ratio is 1.43, which is higher than the MCSE Sharpe Ratio of 0.46. The chart below compares the historical Sharpe Ratios of FEDM and MCSE, 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

FEDM vs. MCSE - Drawdown Comparison

The maximum FEDM drawdown since its inception was -29.37%, which is greater than MCSE's maximum drawdown of -26.36%. Use the drawdown chart below to compare losses from any high point for FEDM and MCSE.

Drawdown Indicators

	FEDM	MCSE	Difference
Max Drawdown Largest peak-to-trough decline	-29.37%	-26.36%	-3.01%
Max Drawdown (1Y) Largest decline over 1 year	-11.92%	-10.42%	-1.50%
Max Drawdown (3Y) Largest decline over 3 years	-14.24%	-26.36%	+12.12%
Current Drawdown Current decline from peak	-0.63%	-10.51%	+9.88%
Average Drawdown Average peak-to-trough decline	-6.79%	-8.80%	+2.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.26%	4.37%	-1.11%

Volatility

FEDM vs. MCSE - Volatility Comparison

FlexShares ESG & Climate Developed Markets ex-US Core Index Fund (FEDM) has a higher volatility of 4.08% compared to Franklin Sustainable International Equity ETF (MCSE) at 0.00%. This indicates that FEDM's price experiences larger fluctuations and is considered to be riskier than MCSE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEDM	MCSE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.08%	0.00%	+4.08%
Volatility (6M) Calculated over the trailing 6-month period	13.19%	1.87%	+11.32%
Volatility (1Y) Calculated over the trailing 1-year period	16.56%	10.29%	+6.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.41%	19.07%	-2.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.41%	19.07%	-2.66%

FEDM vs. MCSE - Expense Ratio Comparison

FEDM has a 0.12% expense ratio, which is lower than MCSE's 0.59% expense ratio.

Dividends

FEDM vs. MCSE - Dividend Comparison

FEDM's dividend yield for the trailing twelve months is around 2.87%, less than MCSE's 3.74% yield.

Position	TTM	2025	2024	2023	2022	2021
FEDM FlexShares ESG & Climate Developed Markets ex-US Core Index Fund	2.87%	2.97%	2.94%	2.61%	2.53%	0.62%
MCSE Franklin Sustainable International Equity ETF	3.74%	3.78%	0.63%	0.57%	0.48%	0.00%

Frequently Asked Questions

Can I hold both FEDM and MCSE in my portfolio?

FEDM and MCSE have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEDM or MCSE?

FEDM has higher volatility (4.08%) compared to MCSE (0.00%). In terms of maximum drawdown, FEDM dropped -29.37% vs MCSE's -26.36%.

Which ETF is better, FEDM or MCSE?

On 3-year performance, FEDM leads with 15.57% vs 0.74% for MCSE. On fees, FEDM is cheaper at 0.12% per year. On volatility, MCSE has been the lower-risk option at 0.00%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEDM or MCSE?

Over the 3-year period, FEDM has performed better with a 15.57% return vs 0.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEDM or MCSE?

FEDM is cheaper with a 0.12% expense ratio, compared with 0.59% for MCSE.

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

MCSE has the higher dividend yield at 3.74%, compared with 2.87% for FEDM.

What is the main difference between FEDM and MCSE?

They also come from different issuers: FlexShares and Franklin. Their fees differ too: 0.12% for FEDM and 0.59% for MCSE.

Which has better risk-adjusted returns?

FEDM currently has the higher Sharpe Ratio (1.43 vs 0.46), 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.