FLQM vs. USMF

Last updated Jun 3, 2026

FLQM (Franklin LibertyQ U.S. Mid Cap Equity ETF) and USMF (WisdomTree US Multifactor Fund) are both Mid Cap Blend Equities funds - FLQM tracks the LibertyQ U.S. Mid Cap Equity Index while USMF tracks the WisdomTree US Multifactor Index. Both are passively managed. Over the past 5 years, FLQM returned 6.90%/yr vs 7.97%/yr for USMF. Their correlation of 0.85 suggests significant overlap in exposure. FLQM charges 0.30%/yr vs 0.28%/yr for USMF.

Performance

FLQM vs. USMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin LibertyQ U.S. Mid Cap Equity ETF (FLQM) and WisdomTree US Multifactor Fund (USMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLQM achieves a 1.19% return, which is significantly lower than USMF's 4.94% return.

FLQM

• 1D: -0.44%
• 1M: 0.48%
• YTD: 1.19%
• 6M: 1.68%
• 1Y: 8.05%
• 3Y*: 11.25%
• 5Y*: 6.90%
• 10Y*: —

USMF

• 1D: 0.36%
• 1M: 4.05%
• YTD: 4.94%
• 6M: 5.66%
• 1Y: 7.33%
• 3Y*: 14.35%
• 5Y*: 7.97%
• 10Y*: —

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

FLQM vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLQM Franklin LibertyQ U.S. Mid Cap Equity ETF	1.19%	5.16%	14.32%	17.47%	-12.95%	28.76%	15.50%	28.56%	-4.24%	12.38%
USMF WisdomTree US Multifactor Fund	4.94%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	24.06%	-4.72%	11.27%

Correlation

The correlation between FLQM and USMF is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (All Time) Calculated using the full available price history since Aug 25, 2017	0.85

The correlation between FLQM and USMF has been stable across timeframes, ranging from 0.84 to 0.92 - a consistent structural relationship.

FLQM vs. USMF - Sectors Allocation Comparison

Sectors	FLQM	USMF
Consumer Cyclical	18.7%	11.1%
Industrials	18.4%	7.8%
Financial Services	15.4%	11.8%
Technology	12.4%	35.6%
Healthcare	12.2%	9.3%
Consumer Defensive	7.7%	5.2%
Energy	5.4%	4.1%
Real Estate	4.4%	2.0%
Communication Services	3.3%	10.3%
Utilities	1.6%	2.0%
Basic Materials	0.2%	0.9%

Return for Risk

FLQM vs. USMF — Risk / Return Rank

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

FLQM

FLQM Risk / Return Rank: 21
FLQM Sharpe Ratio Rank: 20
FLQM Sortino Ratio Rank: 20
FLQM Omega Ratio Rank: 19
FLQM Calmar Ratio Rank: 22
FLQM Martin Ratio Rank: 23

USMF

USMF Risk / Return Rank: 21
USMF Sharpe Ratio Rank: 20
USMF Sortino Ratio Rank: 20
USMF Omega Ratio Rank: 19
USMF Calmar Ratio Rank: 23
USMF Martin Ratio Rank: 24

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.

FLQM vs. USMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin LibertyQ U.S. Mid Cap Equity ETF (FLQM) and WisdomTree US Multifactor Fund (USMF). 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.

	FLQM	USMF	Difference
Sharpe ratio Return per unit of total volatility	0.66	0.68	-0.02
Sortino ratio Return per unit of downside risk	1.07	1.02	+0.05
Omega ratio Gain probability vs. loss probability	1.12	1.12	0.00
Calmar ratio Return relative to maximum drawdown	1.06	1.11	-0.05
Martin ratio Return relative to average drawdown	2.97	3.35	-0.38
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLQM vs. USMF - Sharpe Ratio Comparison

The current FLQM Sharpe Ratio is 0.66, which is comparable to the USMF Sharpe Ratio of 0.68. The chart below compares the historical Sharpe Ratios of FLQM and USMF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FLQM	USMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.66	0.68	-0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.56	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.58	0.63	-0.05

Drawdowns

FLQM vs. USMF - Drawdown Comparison

The maximum FLQM drawdown since its inception was -37.26%, roughly equal to the maximum USMF drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for FLQM and USMF.

Drawdown Indicators

	FLQM	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-37.26%	-36.24%	-1.02%
Max Drawdown (1Y) Largest decline over 1 year	-7.57%	-6.47%	-1.10%
Max Drawdown (3Y) Largest decline over 3 years	-19.70%	-15.39%	-4.31%
Max Drawdown (5Y) Largest decline over 5 years	-22.51%	-18.10%	-4.41%
Current Drawdown Current decline from peak	-2.86%	0.00%	-2.86%
Average Drawdown Average peak-to-trough decline	-4.92%	-4.16%	-0.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.70%	2.15%	+0.55%

Volatility

FLQM vs. USMF - Volatility Comparison

Franklin LibertyQ U.S. Mid Cap Equity ETF (FLQM) has a higher volatility of 2.91% compared to WisdomTree US Multifactor Fund (USMF) at 2.22%. This indicates that FLQM's price experiences larger fluctuations and is considered to be riskier than USMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLQM	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.91%	2.22%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	8.35%	7.46%	+0.89%
Volatility (1Y) Calculated over the trailing 1-year period	12.18%	10.78%	+1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.39%	14.26%	+2.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.48%	16.97%	+1.51%

FLQM vs. USMF - Expense Ratio Comparison

FLQM has a 0.30% expense ratio, which is higher than USMF's 0.28% expense ratio.

Dividends

FLQM vs. USMF - Dividend Comparison

FLQM's dividend yield for the trailing twelve months is around 1.51%, more than USMF's 1.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLQM Franklin LibertyQ U.S. Mid Cap Equity ETF	1.51%	1.49%	1.28%	1.27%	1.33%	1.05%	1.10%	1.37%	1.42%	1.15%
USMF WisdomTree US Multifactor Fund	1.31%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%

Frequently Asked Questions

Can I hold both FLQM and USMF in my portfolio?

FLQM and USMF have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLQM or USMF?

FLQM has higher volatility (2.91%) compared to USMF (2.22%). In terms of maximum drawdown, FLQM dropped -37.26% vs USMF's -36.24%.

Which ETF is better, FLQM or USMF?

On 5-year performance, USMF leads with 7.97% vs 6.90% for FLQM. On fees, USMF is cheaper at 0.28% per year. On volatility, USMF has been the lower-risk option at 2.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLQM or USMF?

Over the 5-year period, USMF has performed better with a 7.97% return vs 6.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLQM or USMF?

USMF is cheaper with a 0.28% expense ratio, compared with 0.30% for FLQM.

Which ETF pays a higher dividend yield, FLQM or USMF?

FLQM has the higher dividend yield at 1.51%, compared with 1.31% for USMF.

What is the main difference between FLQM and USMF?

FLQM tracks LibertyQ U.S. Mid Cap Equity Index, while USMF tracks WisdomTree US Multifactor Index. They also come from different issuers: Franklin Templeton and WisdomTree. Their fees differ too: 0.30% for FLQM and 0.28% for USMF.

Which has better risk-adjusted returns?

USMF currently has the higher Sharpe Ratio (0.68 vs 0.66), 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.