FESM vs. BKSE

Last updated Jun 24, 2026

FESM (Fidelity Enhanced Small Cap ETF) and BKSE (BNY Mellon US Small Cap Core Equity ETF) are both exchange-traded funds - FESM is a Small Cap Blend Equities fund actively managed by Fidelity, while BKSE is a Small Cap Growth Equities fund tracking the Morningstar US Small Cap Index. FESM is actively managed, while BKSE is passively managed. Over the past year, FESM returned 51.65% vs 34.93% for BKSE. With a 0.96 correlation, they move nearly in lockstep. FESM charges 0.28%/yr vs 0.04%/yr for BKSE.

Performance

FESM vs. BKSE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Enhanced Small Cap ETF (FESM) and BNY Mellon US Small Cap Core Equity ETF (BKSE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FESM achieves a 24.59% return, which is significantly higher than BKSE's 16.28% return.

FESM

• 1D: -0.78%
• 1M: 4.79%
• YTD: 24.59%
• 6M: 22.07%
• 1Y: 51.65%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BKSE

• 1D: -0.10%
• 1M: 3.72%
• YTD: 16.28%
• 6M: 14.10%
• 1Y: 34.93%
• 3Y*: 18.52%
• 5Y*: 7.44%
• 10Y*: —

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

FESM vs. BKSE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FESM Fidelity Enhanced Small Cap ETF	24.59%	17.88%	16.22%	12.09%
BKSE BNY Mellon US Small Cap Core Equity ETF	16.28%	13.09%	9.56%	13.68%

Correlation

The correlation between FESM and BKSE is 0.94, 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	0.94
Correlation (All Time) Calculated using the full available price history since Nov 20, 2023	0.96

The correlation between FESM and BKSE has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

FESM vs. BKSE - Sectors Allocation Comparison

Sectors	FESM	BKSE
Technology	23.3%	16.8%
Industrials	18.5%	14.8%
Healthcare	16.1%	12.5%
Financial Services	14.6%	16.3%
Consumer Cyclical	7.7%	13.3%
Energy	5.9%	6.6%
Basic Materials	4.0%	4.6%
Real Estate	3.9%	7.1%
Communication Services	3.1%	2.0%
Utilities	1.8%	3.3%
Consumer Defensive	1.1%	2.8%

Return for Risk

FESM vs. BKSE — Risk / Return Rank

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

FESM

FESM Risk / Return Rank: 85
FESM Sharpe Ratio Rank: 86
FESM Sortino Ratio Rank: 84
FESM Omega Ratio Rank: 77
FESM Calmar Ratio Rank: 89
FESM Martin Ratio Rank: 88

BKSE

BKSE Risk / Return Rank: 68
BKSE Sharpe Ratio Rank: 65
BKSE Sortino Ratio Rank: 67
BKSE Omega Ratio Rank: 58
BKSE Calmar Ratio Rank: 77
BKSE Martin Ratio Rank: 75

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.

FESM vs. BKSE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Enhanced Small Cap ETF (FESM) and BNY Mellon US Small Cap Core Equity ETF (BKSE). 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.

	FESM	BKSE	Difference
Sharpe ratio: Return per unit of total volatility	2.66	1.98	+0.68
Sortino ratio: Return per unit of downside risk	3.53	2.85	+0.68
Omega ratio: Gain probability vs. loss probability	1.43	1.33	+0.10
Calmar ratio: Return relative to maximum drawdown	5.10	3.73	+1.36
Martin ratio: Return relative to average drawdown	18.36	13.06	+5.30

FESM vs. BKSE - Sharpe Ratio Comparison

The current FESM Sharpe Ratio is 2.66, which is higher than the BKSE Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of FESM and BKSE, 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

FESM vs. BKSE - Drawdown Comparison

The maximum FESM drawdown since its inception was -26.93%, smaller than the maximum BKSE drawdown of -29.08%. Use the drawdown chart below to compare losses from any high point for FESM and BKSE.

Drawdown Indicators

	FESM	BKSE	Difference
Max Drawdown Largest peak-to-trough decline	-26.93%	-29.08%	+2.15%
Max Drawdown (1Y) Largest decline over 1 year	-10.18%	-9.40%	-0.78%
Max Drawdown (3Y) Largest decline over 3 years	—	-26.76%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-29.08%	—
Current Drawdown Current decline from peak	-0.78%	-0.10%	-0.68%
Average Drawdown Average peak-to-trough decline	-4.71%	-8.99%	+4.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	2.68%	+0.14%

Volatility

FESM vs. BKSE - Volatility Comparison

Fidelity Enhanced Small Cap ETF (FESM) has a higher volatility of 6.38% compared to BNY Mellon US Small Cap Core Equity ETF (BKSE) at 4.67%. This indicates that FESM's price experiences larger fluctuations and is considered to be riskier than BKSE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FESM	BKSE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.38%	4.67%	+1.71%
Volatility (6M) Calculated over the trailing 6-month period	14.11%	12.29%	+1.82%
Volatility (1Y) Calculated over the trailing 1-year period	19.54%	17.77%	+1.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.32%	21.46%	-0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.32%	22.26%	-0.94%

FESM vs. BKSE - Expense Ratio Comparison

FESM has a 0.28% expense ratio, which is higher than BKSE's 0.04% expense ratio.

Dividends

FESM vs. BKSE - Dividend Comparison

FESM's dividend yield for the trailing twelve months is around 0.73%, less than BKSE's 1.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
BKSE BNY Mellon US Small Cap Core Equity ETF	1.13%	1.26%	1.55%	1.38%	1.50%	1.17%	0.82%
FESM Fidelity Enhanced Small Cap ETF	0.73%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FESM and BKSE in my portfolio?

With a correlation of 0.94, FESM and BKSE 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, FESM or BKSE?

FESM has higher volatility (6.38%) compared to BKSE (4.67%). In terms of maximum drawdown, FESM dropped -26.93% vs BKSE's -29.08%.

Which ETF is better, FESM or BKSE?

On 1-year performance, FESM leads with 51.65% vs 34.93% for BKSE. On fees, BKSE is cheaper at 0.04% per year. On volatility, BKSE has been the lower-risk option at 4.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FESM or BKSE?

Over the 1-year period, FESM has performed better with a 51.65% return vs 34.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FESM or BKSE?

BKSE is cheaper with a 0.04% expense ratio, compared with 0.28% for FESM.

Which ETF pays a higher dividend yield, FESM or BKSE?

BKSE has the higher dividend yield at 1.13%, compared with 0.73% for FESM.

What is the main difference between FESM and BKSE?

FESM is categorized as Small Cap Blend Equities, while BKSE is Small Cap Growth Equities. They also come from different issuers: Fidelity and BNY Mellon. Their fees differ too: 0.28% for FESM and 0.04% for BKSE.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.66 vs 1.98), 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.