FFSM vs. SCHM

Last updated Jun 24, 2026

FFSM (Fidelity Fundamental Small-Mid Cap ETF) and SCHM (Schwab US Mid-Cap ETF) are both Mid Cap Blend Equities funds. FFSM is actively managed, while SCHM is passively managed. Over the past 5 years, FFSM returned 11.05%/yr vs 8.08%/yr for SCHM. With a 0.97 correlation, they move nearly in lockstep. FFSM charges 0.43%/yr vs 0.04%/yr for SCHM.

Performance

FFSM vs. SCHM - Performance Comparison

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

Returns By Period

In the year-to-date period, FFSM achieves a 21.69% return, which is significantly higher than SCHM's 19.11% return.

FFSM

• 1D: -1.51%
• 1M: 4.83%
• YTD: 21.69%
• 6M: 18.97%
• 1Y: 40.76%
• 3Y*: 22.13%
• 5Y*: 11.05%
• 10Y*: —

SCHM

• 1D: -1.73%
• 1M: 2.88%
• YTD: 19.11%
• 6M: 16.97%
• 1Y: 31.33%
• 3Y*: 17.85%
• 5Y*: 8.08%
• 10Y*: 11.71%

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

FFSM vs. SCHM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FFSM Fidelity Fundamental Small-Mid Cap ETF	21.69%	14.89%	14.38%	17.30%	-16.35%	20.44%
SCHM Schwab US Mid-Cap ETF	19.11%	10.17%	11.98%	16.69%	-17.07%	14.13%

Correlation

The correlation between FFSM and SCHM is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Feb 4, 2021	0.97

The correlation between FFSM and SCHM has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

FFSM vs. SCHM - Sectors Allocation Comparison

Sectors	FFSM	SCHM
Industrials	29.5%	21.7%
Financial Services	22.7%	10.9%
Technology	14.0%	22.1%
Consumer Cyclical	12.2%	10.8%
Healthcare	9.1%	10.9%
Basic Materials	6.2%	4.7%
Consumer Defensive	2.3%	3.4%
Energy	2.2%	3.4%
Utilities	1.8%	2.9%
Real Estate	0.0%	6.4%
Communication Services	-	2.6%

Return for Risk

FFSM vs. SCHM — Risk / Return Rank

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

FFSM

FFSM Risk / Return Rank: 75
FFSM Sharpe Ratio Rank: 73
FFSM Sortino Ratio Rank: 72
FFSM Omega Ratio Rank: 69
FFSM Calmar Ratio Rank: 80
FFSM Martin Ratio Rank: 83

SCHM

SCHM Risk / Return Rank: 64
SCHM Sharpe Ratio Rank: 60
SCHM Sortino Ratio Rank: 60
SCHM Omega Ratio Rank: 56
SCHM Calmar Ratio Rank: 70
SCHM Martin Ratio Rank: 74

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. SCHM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Fundamental Small-Mid Cap ETF (FFSM) and Schwab US Mid-Cap ETF (SCHM). 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	SCHM	Difference
Sharpe ratio: Return per unit of total volatility	2.20	1.93	+0.27
Sortino ratio: Return per unit of downside risk	3.06	2.72	+0.34
Omega ratio: Gain probability vs. loss probability	1.38	1.34	+0.04
Calmar ratio: Return relative to maximum drawdown	3.95	3.38	+0.57
Martin ratio: Return relative to average drawdown	15.89	13.48	+2.41

FFSM vs. SCHM - Sharpe Ratio Comparison

The current FFSM Sharpe Ratio is 2.20, which is comparable to the SCHM Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of FFSM and SCHM, 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. SCHM - Drawdown Comparison

The maximum FFSM drawdown since its inception was -26.65%, smaller than the maximum SCHM drawdown of -42.43%. Use the drawdown chart below to compare losses from any high point for FFSM and SCHM.

Drawdown Indicators

	FFSM	SCHM	Difference
Max Drawdown Largest peak-to-trough decline	-26.65%	-42.43%	+15.78%
Max Drawdown (1Y) Largest decline over 1 year	-10.37%	-9.32%	-1.05%
Max Drawdown (3Y) Largest decline over 3 years	-24.78%	-23.27%	-1.51%
Max Drawdown (5Y) Largest decline over 5 years	-26.65%	-26.46%	-0.19%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.43%	—
Current Drawdown Current decline from peak	-1.51%	-1.73%	+0.22%
Average Drawdown Average peak-to-trough decline	-7.79%	-5.64%	-2.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.57%	2.33%	+0.24%

Volatility

FFSM vs. SCHM - Volatility Comparison

Fidelity Fundamental Small-Mid Cap ETF (FFSM) has a higher volatility of 6.36% compared to Schwab US Mid-Cap ETF (SCHM) at 5.75%. This indicates that FFSM's price experiences larger fluctuations and is considered to be riskier than SCHM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FFSM	SCHM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.36%	5.75%	+0.61%
Volatility (6M) Calculated over the trailing 6-month period	14.66%	12.61%	+2.05%
Volatility (1Y) Calculated over the trailing 1-year period	18.65%	16.30%	+2.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.76%	19.67%	+1.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.62%	20.49%	+0.13%

FFSM vs. SCHM - Expense Ratio Comparison

FFSM has a 0.43% expense ratio, which is higher than SCHM's 0.04% expense ratio.

Dividends

FFSM vs. SCHM - Dividend Comparison

FFSM's dividend yield for the trailing twelve months is around 0.43%, less than SCHM's 1.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FFSM Fidelity Fundamental Small-Mid Cap ETF	0.43%	0.56%	0.62%	0.56%	0.58%	0.37%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHM Schwab US Mid-Cap ETF	1.22%	1.46%	1.43%	1.50%	1.67%	1.13%	1.31%	1.48%	1.56%	1.27%	1.51%	1.54%

Frequently Asked Questions

Can I hold both FFSM and SCHM in my portfolio?

With a correlation of 0.93, FFSM and SCHM 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, FFSM or SCHM?

FFSM has higher volatility (6.36%) compared to SCHM (5.75%). In terms of maximum drawdown, FFSM dropped -26.65% vs SCHM's -42.43%.

Which ETF is better, FFSM or SCHM?

On 5-year performance, FFSM leads with 11.05% vs 8.08% for SCHM. On fees, SCHM is cheaper at 0.04% per year. On volatility, SCHM has been the lower-risk option at 5.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FFSM or SCHM?

Over the 5-year period, FFSM has performed better with a 11.05% return vs 8.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FFSM or SCHM?

SCHM is cheaper with a 0.04% expense ratio, compared with 0.43% for FFSM.

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

SCHM has the higher dividend yield at 1.22%, compared with 0.43% for FFSM.

What is the main difference between FFSM and SCHM?

They also come from different issuers: Fidelity and Charles Schwab. Their fees differ too: 0.43% for FFSM and 0.04% for SCHM.

Which has better risk-adjusted returns?

FFSM currently has the higher Sharpe Ratio (2.20 vs 1.93), 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.