FESM vs. IWM
FESM (Fidelity Enhanced Small Cap Core ETF) and IWM (iShares Russell 2000 ETF) are both Small Cap Blend Equities funds. FESM is actively managed, while IWM is passively managed. Over the past year, FESM returned 49.21% vs 39.26% for IWM. Their 0.98 correlation means they have historically moved very closely together. FESM charges 0.28%/yr vs 0.19%/yr for IWM.
Performance
FESM vs. IWM - Performance Comparison
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Returns By Period
In the year-to-date period, FESM achieves a 26.24% return, which is significantly higher than IWM's 20.84% return.
FESM
- 1D
- 1.78%
- 1M
- -0.27%
- 6M
- 18.99%
- YTD
- 26.24%
- 1Y
- 49.21%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 27.76%
IWM
- 1D
- 1.72%
- 1M
- -0.46%
- 6M
- 13.45%
- YTD
- 20.84%
- 1Y
- 39.26%
- 3Y*
- 16.48%
- 5Y*
- 7.64%
- 10Y*
- 10.63%
- ALL TIME*
- 8.80%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $40.01M | $45.20M | $35.87M | |
| $6.77B | $6.36B | $7.44B |
FESM vs. IWM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
FESM Fidelity Enhanced Small Cap Core ETF | 26.24% | 17.88% | 16.22% | 12.09% |
IWM iShares Russell 2000 ETF | 20.84% | 12.66% | 11.38% | 12.99% |
Correlation
The correlation between FESM and IWM is 0.98 - they have historically moved very closely together. At this level, their price movements offset little of one another.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.98 |
Correlation (All Time) Calculated using the full available price history since Nov 20, 2023 | 0.98 |
The correlation between FESM and IWM has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.
FESM vs. IWM - Sectors Allocation Comparison
Sectors
FESM
IWM
Healthcare
Technology
Financial Services
Industrials
Consumer Cyclical
Basic Materials
Energy
Real Estate
Communication Services
Utilities
Consumer Defensive
Healthcare
FESM
IWM
Technology
FESM
IWM
Financial Services
FESM
IWM
Industrials
FESM
IWM
Consumer Cyclical
FESM
IWM
Basic Materials
FESM
IWM
Energy
FESM
IWM
Real Estate
FESM
IWM
Communication Services
FESM
IWM
Utilities
FESM
IWM
Consumer Defensive
FESM
IWM
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Return for Risk
FESM vs. IWM — Risk / Return Rank
FESM
IWM
FESM vs. IWM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Fidelity Enhanced Small Cap Core ETF (FESM) and iShares Russell 2000 ETF (IWM). 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 | IWM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.53 | ||
| Sortino ratioReturn per unit of downside risk | +0.64 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.34 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 4.86 | 3.58 | +1.28 |
| Martin ratioReturn relative to average drawdown | 17.17 | 12.68 | +4.50 |
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Drawdowns
FESM vs. IWM - Drawdown Comparison
The maximum FESM drawdown since its inception was -26.93%, smaller than the maximum IWM drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for FESM and IWM.
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Drawdown Indicators
| FESM | IWM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.93% | -59.05% | +32.12% |
Max Drawdown (1Y)Largest decline over 1 year | -10.18% | -11.03% | +0.85% |
Max Drawdown (3Y)Largest decline over 3 years | — | -27.50% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -31.91% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -41.13% | — |
Current DrawdownCurrent decline from peak | -1.72% | -1.41% | -0.31% |
Average DrawdownAverage peak-to-trough decline | -4.59% | -10.71% | +6.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.87% | 3.11% | -0.24% |
Volatility
FESM vs. IWM - Volatility Comparison
Fidelity Enhanced Small Cap Core ETF (FESM) and iShares Russell 2000 ETF (IWM) have volatilities of 4.32% and 4.21%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FESM | IWM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.32% | 4.21% | +0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 14.09% | 14.13% | -0.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.24% | 19.36% | -0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.07% | 22.50% | -1.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.07% | 23.02% | -1.95% |
FESM vs. IWM - Expense Ratio Comparison
FESM has a 0.28% expense ratio, which is higher than IWM's 0.19% expense ratio.
Dividends
FESM vs. IWM - Dividend Comparison
FESM's dividend yield for the trailing twelve months is around 0.72%, less than IWM's 0.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FESM Fidelity Enhanced Small Cap Core ETF | 0.72% | 0.82% | 1.08% | 0.06% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
IWM iShares Russell 2000 ETF | 0.90% | 1.04% | 1.15% | 1.35% | 1.48% | 0.94% | 1.04% | 1.26% | 1.40% | 1.26% | 1.38% | 1.54% |
Frequently Asked Questions
With a correlation of 0.98, FESM and IWM 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.
FESM has higher volatility (4.32%) compared to IWM (4.21%). In terms of maximum drawdown, FESM dropped -26.93% vs IWM's -59.05%.
On 1-year performance, FESM leads with 49.21% vs 39.26% for IWM. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 4.21%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, FESM has performed better with a 49.21% return vs 39.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IWM is cheaper with a 0.19% expense ratio, compared with 0.28% for FESM.
IWM has the higher dividend yield at 0.90%, compared with 0.72% for FESM.
They also come from different issuers: Fidelity and iShares. Their fees differ too: 0.28% for FESM and 0.19% for IWM.
FESM currently has the higher Sharpe Ratio (2.58 vs 2.04), 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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