FLQS vs. FSGS

Last updated Jun 4, 2026

FLQS (Franklin LibertyQ U.S. Small Cap Equity ETF) and FSGS (First Trust SMID Growth Strength ETF) are both Small Cap Growth Equities funds - FLQS tracks the LibertyQ U.S. Small Cap Equity Index while FSGS tracks the SMID Growth Strength Index. Both are passively managed. Over the past 5 years, FLQS returned 5.27%/yr vs 2.30%/yr for FSGS. Their correlation of 0.84 suggests significant overlap in exposure. FLQS charges 0.35%/yr vs 0.60%/yr for FSGS.

Performance

FLQS vs. FSGS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) and First Trust SMID Growth Strength ETF (FSGS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLQS achieves a 6.14% return, which is significantly higher than FSGS's 1.65% return.

FLQS

• 1D: -0.81%
• 1M: 0.12%
• YTD: 6.14%
• 6M: 5.99%
• 1Y: 13.84%
• 3Y*: 11.59%
• 5Y*: 5.27%
• 10Y*: —

FSGS

• 1D: -1.01%
• 1M: 0.57%
• YTD: 1.65%
• 6M: 1.45%
• 1Y: 6.26%
• 3Y*: 7.19%
• 5Y*: 2.30%
• 10Y*: —

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

FLQS vs. FSGS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	6.14%	5.04%	8.34%	21.28%	-16.88%	26.58%	10.51%	18.34%	-5.86%	9.79%
FSGS First Trust SMID Growth Strength ETF	1.65%	2.41%	6.38%	15.98%	-13.17%	25.56%	10.26%	21.31%	-11.92%	10.39%

Correlation

The correlation between FLQS and FSGS 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	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jun 23, 2017	0.84

The correlation between FLQS and FSGS has been stable across timeframes, ranging from 0.84 to 0.93 - a consistent structural relationship.

FLQS vs. FSGS - Sectors Allocation Comparison

Sectors	FLQS	FSGS
Technology	17.1%	18.8%
Industrials	16.3%	22.0%
Consumer Cyclical	15.6%	8.0%
Financial Services	12.6%	19.5%
Healthcare	9.6%	16.7%
Consumer Defensive	7.8%	5.0%
Real Estate	6.7%	0.9%
Utilities	5.8%	-
Energy	4.6%	4.2%
Basic Materials	2.1%	1.7%
Communication Services	1.9%	3.1%

Return for Risk

FLQS vs. FSGS — Risk / Return Rank

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

FLQS

FLQS Risk / Return Rank: 28
FLQS Sharpe Ratio Rank: 26
FLQS Sortino Ratio Rank: 26
FLQS Omega Ratio Rank: 25
FLQS Calmar Ratio Rank: 32
FLQS Martin Ratio Rank: 31

FSGS

FSGS Risk / Return Rank: 15
FSGS Sharpe Ratio Rank: 15
FSGS Sortino Ratio Rank: 14
FSGS Omega Ratio Rank: 14
FSGS Calmar Ratio Rank: 15
FSGS Martin Ratio Rank: 16

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.

FLQS vs. FSGS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) and First Trust SMID Growth Strength ETF (FSGS). 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.

	FLQS	FSGS	Difference
Sharpe ratio Return per unit of total volatility	0.91	0.41	+0.50
Sortino ratio Return per unit of downside risk	1.44	0.70	+0.74
Omega ratio Gain probability vs. loss probability	1.17	1.08	+0.09
Calmar ratio Return relative to maximum drawdown	1.54	0.54	+1.00
Martin ratio Return relative to average drawdown	4.55	1.55	+3.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLQS vs. FSGS - Sharpe Ratio Comparison

The current FLQS Sharpe Ratio is 0.91, which is higher than the FSGS Sharpe Ratio of 0.41. The chart below compares the historical Sharpe Ratios of FLQS and FSGS, 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

	FLQS	FSGS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.91	0.41	+0.50
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.11	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.31	+0.07

Drawdowns

FLQS vs. FSGS - Drawdown Comparison

The maximum FLQS drawdown since its inception was -42.16%, roughly equal to the maximum FSGS drawdown of -43.26%. Use the drawdown chart below to compare losses from any high point for FLQS and FSGS.

Drawdown Indicators

	FLQS	FSGS	Difference
Max Drawdown Largest peak-to-trough decline	-42.16%	-43.26%	+1.10%
Max Drawdown (1Y) Largest decline over 1 year	-9.00%	-11.31%	+2.31%
Max Drawdown (3Y) Largest decline over 3 years	-23.12%	-24.08%	+0.96%
Max Drawdown (5Y) Largest decline over 5 years	-28.05%	-24.08%	-3.97%
Current Drawdown Current decline from peak	-1.33%	-4.37%	+3.04%
Average Drawdown Average peak-to-trough decline	-8.02%	-8.03%	+0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.05%	3.96%	-0.91%

Volatility

FLQS vs. FSGS - Volatility Comparison

Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) has a higher volatility of 4.09% compared to First Trust SMID Growth Strength ETF (FSGS) at 3.77%. This indicates that FLQS's price experiences larger fluctuations and is considered to be riskier than FSGS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLQS	FSGS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.09%	3.77%	+0.32%
Volatility (6M) Calculated over the trailing 6-month period	10.26%	10.75%	-0.49%
Volatility (1Y) Calculated over the trailing 1-year period	15.22%	15.23%	-0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.24%	20.14%	-0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.68%	22.81%	-1.13%

FLQS vs. FSGS - Expense Ratio Comparison

FLQS has a 0.35% expense ratio, which is lower than FSGS's 0.60% expense ratio.

Dividends

FLQS vs. FSGS - Dividend Comparison

FLQS's dividend yield for the trailing twelve months is around 1.35%, while FSGS has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	1.35%	1.16%	1.29%	1.75%	1.40%	0.95%	1.20%	1.41%	1.27%	1.02%
FSGS First Trust SMID Growth Strength ETF	0.00%	0.00%	2.71%	2.29%	1.95%	1.35%	1.32%	1.77%	2.13%	1.15%

Frequently Asked Questions

Can I hold both FLQS and FSGS in my portfolio?

FLQS and FSGS 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, FLQS or FSGS?

FLQS has higher volatility (4.09%) compared to FSGS (3.77%). In terms of maximum drawdown, FLQS dropped -42.16% vs FSGS's -43.26%.

Which ETF is better, FLQS or FSGS?

On 5-year performance, FLQS leads with 5.27% vs 2.30% for FSGS. On fees, FLQS is cheaper at 0.35% per year. On volatility, FSGS has been the lower-risk option at 3.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLQS or FSGS?

Over the 5-year period, FLQS has performed better with a 5.27% return vs 2.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLQS or FSGS?

FLQS is cheaper with a 0.35% expense ratio, compared with 0.60% for FSGS.

Which ETF pays a higher dividend yield, FLQS or FSGS?

FLQS has the higher dividend yield at 1.35%, compared with 0.00% for FSGS.

What is the main difference between FLQS and FSGS?

FLQS tracks LibertyQ U.S. Small Cap Equity Index, while FSGS tracks SMID Growth Strength Index. They also come from different issuers: Franklin Templeton and First Trust. Their fees differ too: 0.35% for FLQS and 0.60% for FSGS.

Which has better risk-adjusted returns?

FLQS currently has the higher Sharpe Ratio (0.91 vs 0.41), 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.