FFSM vs. IQSM

Last updated Jul 14, 2026

FFSM (Fidelity Fundamental Small-Mid Cap ETF) and IQSM (IQ Candriam U.S. Mid Cap Equity ETF) are both Mid Cap Blend Equities funds. FFSM is actively managed, while IQSM is passively managed. Over the past 3 years, FFSM returned 18.99%/yr vs 11.91%/yr for IQSM. Their correlation of 0.94 suggests significant overlap in exposure. FFSM charges 0.43%/yr vs 0.15%/yr for IQSM.

Performance

FFSM vs. IQSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Fundamental Small-Mid Cap ETF (FFSM) and IQ Candriam U.S. Mid Cap Equity ETF (IQSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FFSM achieves a 19.47% return, which is significantly higher than IQSM's 13.45% return.

FFSM

• 1D: -0.84%
• 1M: -1.40%
• 6M: 13.58%
• YTD: 19.47%
• 1Y: 32.97%
• 3Y*: 18.99%
• 5Y*: 11.00%
• 10Y*: —

IQSM

• 1D: -0.51%
• 1M: 0.55%
• 6M: 8.75%
• YTD: 13.45%
• 1Y: 20.44%
• 3Y*: 11.91%
• 5Y*: —
• 10Y*: —

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

FFSM vs. IQSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FFSM Fidelity Fundamental Small-Mid Cap ETF	19.47%	14.89%	14.38%	17.30%	4.22%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	13.45%	7.97%	9.15%	15.82%	2.29%

Correlation

The correlation between FFSM and IQSM is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (All Time) Calculated using the full available price history since Oct 25, 2022	0.94

The correlation between FFSM and IQSM has been stable across timeframes, ranging from 0.90 to 0.94 - a consistent structural relationship.

FFSM vs. IQSM - Sectors Allocation Comparison

Sectors	FFSM	IQSM
Industrials	25.7%	19.4%
Technology	18.5%	18.3%
Financial Services	13.9%	12.1%
Healthcare	9.8%	15.1%
Consumer Cyclical	9.6%	9.6%
Consumer Defensive	5.5%	4.6%
Energy	5.1%	1.9%
Basic Materials	4.5%	5.2%
Real Estate	4.5%	9.7%
Utilities	2.3%	0.7%
Communication Services	0.6%	3.4%

Return for Risk

FFSM vs. IQSM — Risk / Return Rank

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

FFSM

FFSM Risk / Return Rank: 72
FFSM Sharpe Ratio Rank: 69
FFSM Sortino Ratio Rank: 69
FFSM Omega Ratio Rank: 63
FFSM Calmar Ratio Rank: 78
FFSM Martin Ratio Rank: 81

IQSM

IQSM Risk / Return Rank: 53
IQSM Sharpe Ratio Rank: 49
IQSM Sortino Ratio Rank: 51
IQSM Omega Ratio Rank: 45
IQSM Calmar Ratio Rank: 58
IQSM Martin Ratio Rank: 60

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.

FFSM vs. IQSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Fundamental Small-Mid Cap ETF (FFSM) and IQ Candriam U.S. Mid Cap Equity ETF (IQSM). 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.

	FFSM	IQSM	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.35	+0.40
Sortino ratio: Return per unit of downside risk	2.52	2.01	+0.51
Omega ratio: Gain probability vs. loss probability	1.30	1.24	+0.07
Calmar ratio: Return relative to maximum drawdown	3.19	2.32	+0.88
Martin ratio: Return relative to average drawdown	12.54	8.44	+4.10

FFSM vs. IQSM - Sharpe Ratio Comparison

The current FFSM Sharpe Ratio is 1.76, which is comparable to the IQSM Sharpe Ratio of 1.35. The chart below compares the historical Sharpe Ratios of FFSM and IQSM, 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

FFSM vs. IQSM - Drawdown Comparison

The maximum FFSM drawdown since its inception was -26.65%, which is greater than IQSM's maximum drawdown of -23.66%. Use the drawdown chart below to compare losses from any high point for FFSM and IQSM.

Drawdown Indicators

	FFSM	IQSM	Difference
Max Drawdown Largest peak-to-trough decline	-26.65%	-23.66%	-2.99%
Max Drawdown (1Y) Largest decline over 1 year	-10.37%	-8.86%	-1.51%
Max Drawdown (3Y) Largest decline over 3 years	-24.78%	-23.66%	-1.12%
Max Drawdown (5Y) Largest decline over 5 years	-26.65%	—	—
Current Drawdown Current decline from peak	-4.27%	-1.79%	-2.48%
Average Drawdown Average peak-to-trough decline	-7.73%	-4.75%	-2.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	2.43%	+0.21%

Volatility

FFSM vs. IQSM - Volatility Comparison

Fidelity Fundamental Small-Mid Cap ETF (FFSM) has a higher volatility of 6.19% compared to IQ Candriam U.S. Mid Cap Equity ETF (IQSM) at 4.02%. This indicates that FFSM's price experiences larger fluctuations and is considered to be riskier than IQSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FFSM	IQSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.19%	4.02%	+2.17%
Volatility (6M) Calculated over the trailing 6-month period	14.91%	11.44%	+3.47%
Volatility (1Y) Calculated over the trailing 1-year period	18.89%	15.21%	+3.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.78%	17.81%	+2.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.59%	17.81%	+2.78%

FFSM vs. IQSM - Expense Ratio Comparison

FFSM has a 0.43% expense ratio, which is higher than IQSM's 0.15% expense ratio.

Dividends

FFSM vs. IQSM - Dividend Comparison

FFSM's dividend yield for the trailing twelve months is around 0.44%, less than IQSM's 1.06% yield.

Position	TTM	2025	2024	2023	2022	2021
FFSM Fidelity Fundamental Small-Mid Cap ETF	0.44%	0.56%	0.62%	0.56%	0.58%	0.37%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.06%	1.18%	1.22%	1.11%	0.32%	0.00%

Frequently Asked Questions

Can I hold both FFSM and IQSM in my portfolio?

FFSM and IQSM have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FFSM or IQSM?

FFSM has higher volatility (6.19%) compared to IQSM (4.02%). In terms of maximum drawdown, FFSM dropped -26.65% vs IQSM's -23.66%.

Which ETF is better, FFSM or IQSM?

On 3-year performance, FFSM leads with 18.99% vs 11.91% for IQSM. On fees, IQSM is cheaper at 0.15% per year. On volatility, IQSM has been the lower-risk option at 4.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FFSM or IQSM?

Over the 3-year period, FFSM has performed better with a 18.99% return vs 11.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FFSM or IQSM?

IQSM is cheaper with a 0.15% expense ratio, compared with 0.43% for FFSM.

Which ETF pays a higher dividend yield, FFSM or IQSM?

IQSM has the higher dividend yield at 1.06%, compared with 0.44% for FFSM.

What is the main difference between FFSM and IQSM?

They also come from different issuers: Fidelity and IndexIQ. Their fees differ too: 0.43% for FFSM and 0.15% for IQSM.

Which has better risk-adjusted returns?

FFSM currently has the higher Sharpe Ratio (1.76 vs 1.35), 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.