FESM vs. TWM

Last updated Jun 24, 2026

FESM (Fidelity Enhanced Small Cap ETF) and TWM (ProShares UltraShort Russell2000) are both exchange-traded funds - FESM is a Small Cap Blend Equities fund actively managed by Fidelity, while TWM is a Leveraged Equities fund tracking the Russell 2000 (-200%). FESM is actively managed, while TWM is passively managed. Over the past year, FESM returned 51.65% vs -50.37% for TWM. At a correlation of -0.98, they often move in opposite directions. FESM charges 0.28%/yr vs 0.95%/yr for TWM.

Performance

FESM vs. TWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Enhanced Small Cap ETF (FESM) and ProShares UltraShort Russell2000 (TWM). 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 TWM's -32.09% return.

FESM

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

TWM

• 1D: 1.98%
• 1M: -7.68%
• YTD: -32.09%
• 6M: -28.69%
• 1Y: -50.37%
• 3Y*: -30.94%
• 5Y*: -17.34%
• 10Y*: -28.49%

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

FESM vs. TWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FESM Fidelity Enhanced Small Cap ETF	24.59%	17.88%	16.22%	12.09%
TWM ProShares UltraShort Russell2000	-32.09%	-24.71%	-19.35%	-21.83%

Correlation

The correlation between FESM and TWM is -0.98, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.98
Correlation (All Time) Calculated using the full available price history since Nov 20, 2023	-0.98

The correlation between FESM and TWM has been stable across timeframes, ranging from -0.98 to -0.98 - a consistent structural relationship.

FESM vs. TWM - Sectors Allocation Comparison

Sectors	FESM	TWM
Technology	23.3%	-
Industrials	18.5%	-
Healthcare	16.1%	-
Financial Services	14.6%	100.3%
Consumer Cyclical	7.7%	-
Energy	5.9%	-
Basic Materials	4.0%	-
Real Estate	3.9%	-
Communication Services	3.1%	-
Utilities	1.8%	-
Consumer Defensive	1.1%	-

Return for Risk

FESM vs. TWM — 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

TWM

TWM Risk / Return Rank: 0
TWM Sharpe Ratio Rank: 0
TWM Sortino Ratio Rank: 0
TWM Omega Ratio Rank: 1
TWM Calmar Ratio Rank: 0
TWM Martin Ratio Rank: 1

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. TWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Enhanced Small Cap ETF (FESM) and ProShares UltraShort Russell2000 (TWM). 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	TWM	Difference
Sharpe ratio: Return per unit of total volatility	2.66	-1.28	+3.94
Sortino ratio: Return per unit of downside risk	3.53	-2.08	+5.61
Omega ratio: Gain probability vs. loss probability	1.43	0.78	+0.65
Calmar ratio: Return relative to maximum drawdown	5.10	-0.99	+6.08
Martin ratio: Return relative to average drawdown	18.36	-1.64	+20.00

FESM vs. TWM - Sharpe Ratio Comparison

The current FESM Sharpe Ratio is 2.66, which is higher than the TWM Sharpe Ratio of -1.28. The chart below compares the historical Sharpe Ratios of FESM and TWM, 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. TWM - Drawdown Comparison

The maximum FESM drawdown since its inception was -26.93%, smaller than the maximum TWM drawdown of -99.94%. Use the drawdown chart below to compare losses from any high point for FESM and TWM.

Drawdown Indicators

	FESM	TWM	Difference
Max Drawdown Largest peak-to-trough decline	-26.93%	-99.94%	+73.01%
Max Drawdown (1Y) Largest decline over 1 year	-10.18%	-51.15%	+40.97%
Max Drawdown (3Y) Largest decline over 3 years	—	-74.07%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-76.44%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-96.79%	—
Current Drawdown Current decline from peak	-0.78%	-99.93%	+99.15%
Average Drawdown Average peak-to-trough decline	-4.71%	-87.29%	+82.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.82%	30.89%	-28.07%

Volatility

FESM vs. TWM - Volatility Comparison

The current volatility for Fidelity Enhanced Small Cap ETF (FESM) is 6.38%, while ProShares UltraShort Russell2000 (TWM) has a volatility of 13.21%. This indicates that FESM experiences smaller price fluctuations and is considered to be less risky than TWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FESM	TWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.38%	13.21%	-6.83%
Volatility (6M) Calculated over the trailing 6-month period	14.11%	28.79%	-14.68%
Volatility (1Y) Calculated over the trailing 1-year period	19.54%	39.41%	-19.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.32%	45.25%	-23.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.32%	45.84%	-24.52%

FESM vs. TWM - Expense Ratio Comparison

FESM has a 0.28% expense ratio, which is lower than TWM's 0.95% expense ratio.

Dividends

FESM vs. TWM - Dividend Comparison

FESM's dividend yield for the trailing twelve months is around 0.73%, less than TWM's 6.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FESM Fidelity Enhanced Small Cap ETF	0.73%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TWM ProShares UltraShort Russell2000	6.67%	5.36%	6.21%	4.72%	0.17%	0.00%	0.41%	1.49%	0.73%	0.05%

Frequently Asked Questions

Can I hold both FESM and TWM in my portfolio?

FESM and TWM have a correlation of -0.98, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FESM or TWM?

TWM has higher volatility (13.21%) compared to FESM (6.38%). In terms of maximum drawdown, FESM dropped -26.93% vs TWM's -99.94%.

Which ETF is better, FESM or TWM?

On 1-year performance, FESM leads with 51.65% vs -50.37% for TWM. On fees, FESM is cheaper at 0.28% per year. On volatility, FESM has been the lower-risk option at 6.38%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FESM or TWM?

Over the 1-year period, FESM has performed better with a 51.65% return vs -50.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FESM or TWM?

FESM is cheaper with a 0.28% expense ratio, compared with 0.95% for TWM.

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

TWM has the higher dividend yield at 6.67%, compared with 0.73% for FESM.

What is the main difference between FESM and TWM?

FESM is categorized as Small Cap Blend Equities, while TWM is Leveraged Equities. They also come from different issuers: Fidelity and ProShares. Their fees differ too: 0.28% for FESM and 0.95% for TWM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.66 vs -1.28), 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.