FLQS vs. FSMD

Last updated Jun 4, 2026

FLQS (Franklin LibertyQ U.S. Small Cap Equity ETF) and FSMD (Fidelity Small-Mid Multifactor ETF) are both Small Cap Growth Equities funds - FLQS tracks the LibertyQ U.S. Small Cap Equity Index while FSMD tracks the Fidelity Small-Mid Multifactor Index. Both are passively managed. Over the past 5 years, FLQS returned 5.27%/yr vs 9.66%/yr for FSMD. Their correlation of 0.94 suggests significant overlap in exposure. FLQS charges 0.35%/yr vs 0.29%/yr for FSMD.

Performance

FLQS vs. FSMD - 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 Fidelity Small-Mid Multifactor ETF (FSMD). 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 lower than FSMD's 14.85% return.

FLQS

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

FSMD

• 1D: -0.08%
• 1M: 3.46%
• YTD: 14.85%
• 6M: 14.81%
• 1Y: 25.71%
• 3Y*: 17.63%
• 5Y*: 9.66%
• 10Y*: —

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

FLQS vs. FSMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	6.14%	5.04%	8.34%	21.28%	-16.88%	26.58%	10.51%	4.68%
FSMD Fidelity Small-Mid Multifactor ETF	14.85%	8.70%	15.18%	17.37%	-11.15%	26.40%	8.94%	8.81%

Correlation

The correlation between FLQS and FSMD is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Mar 1, 2019	0.94

The correlation between FLQS and FSMD has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.

FLQS vs. FSMD - Sectors Allocation Comparison

Sectors	FLQS	FSMD
Technology	17.1%	18.2%
Industrials	16.3%	20.7%
Consumer Cyclical	15.6%	11.1%
Financial Services	12.6%	15.4%
Healthcare	9.6%	11.6%
Consumer Defensive	7.8%	3.3%
Real Estate	6.7%	6.2%
Utilities	5.8%	2.2%
Energy	4.6%	4.6%
Basic Materials	2.1%	3.9%
Communication Services	1.9%	2.8%

Return for Risk

FLQS vs. FSMD — 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

FSMD

FSMD Risk / Return Rank: 53
FSMD Sharpe Ratio Rank: 48
FSMD Sortino Ratio Rank: 50
FSMD Omega Ratio Rank: 46
FSMD Calmar Ratio Rank: 61
FSMD Martin Ratio Rank: 61

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. FSMD - 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 Fidelity Small-Mid Multifactor ETF (FSMD). 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	FSMD	Difference
Sharpe ratio: Return per unit of total volatility	0.91	1.69	-0.78
Sortino ratio: Return per unit of downside risk	1.44	2.47	-1.03
Omega ratio: Gain probability vs. loss probability	1.17	1.30	-0.13
Calmar ratio: Return relative to maximum drawdown	1.54	3.06	-1.52
Martin ratio: Return relative to average drawdown	4.55	11.03	-6.48
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. FSMD - Sharpe Ratio Comparison

The current FLQS Sharpe Ratio is 0.91, which is lower than the FSMD Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of FLQS and FSMD, 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	FSMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.91	1.69	-0.78
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.53	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.55	-0.18

Drawdowns

FLQS vs. FSMD - Drawdown Comparison

The maximum FLQS drawdown since its inception was -42.16%, roughly equal to the maximum FSMD drawdown of -40.67%. Use the drawdown chart below to compare losses from any high point for FLQS and FSMD.

Drawdown Indicators

	FLQS	FSMD	Difference
Max Drawdown Largest peak-to-trough decline	-42.16%	-40.67%	-1.49%
Max Drawdown (1Y) Largest decline over 1 year	-9.00%	-8.44%	-0.56%
Max Drawdown (3Y) Largest decline over 3 years	-23.12%	-22.16%	-0.96%
Max Drawdown (5Y) Largest decline over 5 years	-28.05%	-22.16%	-5.89%
Current Drawdown Current decline from peak	-1.33%	-0.08%	-1.25%
Average Drawdown Average peak-to-trough decline	-8.02%	-6.00%	-2.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.05%	2.34%	+0.71%

Volatility

FLQS vs. FSMD - Volatility Comparison

The current volatility for Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) is 4.09%, while Fidelity Small-Mid Multifactor ETF (FSMD) has a volatility of 4.45%. This indicates that FLQS experiences smaller price fluctuations and is considered to be less risky than FSMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLQS	FSMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.09%	4.45%	-0.36%
Volatility (6M) Calculated over the trailing 6-month period	10.26%	11.37%	-1.11%
Volatility (1Y) Calculated over the trailing 1-year period	15.22%	15.26%	-0.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.24%	18.48%	+0.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.68%	21.42%	+0.26%

FLQS vs. FSMD - Expense Ratio Comparison

FLQS has a 0.35% expense ratio, which is higher than FSMD's 0.29% expense ratio.

Dividends

FLQS vs. FSMD - Dividend Comparison

FLQS's dividend yield for the trailing twelve months is around 1.35%, more than FSMD's 1.21% yield.

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%
FSMD Fidelity Small-Mid Multifactor ETF	1.21%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLQS and FSMD in my portfolio?

With a correlation of 0.91, FLQS and FSMD 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, FLQS or FSMD?

FSMD has higher volatility (4.45%) compared to FLQS (4.09%). In terms of maximum drawdown, FLQS dropped -42.16% vs FSMD's -40.67%.

Which ETF is better, FLQS or FSMD?

On 5-year performance, FSMD leads with 9.66% vs 5.27% for FLQS. On fees, FSMD is cheaper at 0.29% per year. On volatility, FLQS has been the lower-risk option at 4.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLQS or FSMD?

Over the 5-year period, FSMD has performed better with a 9.66% return vs 5.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLQS or FSMD?

FSMD is cheaper with a 0.29% expense ratio, compared with 0.35% for FLQS.

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

FLQS has the higher dividend yield at 1.35%, compared with 1.21% for FSMD.

What is the main difference between FLQS and FSMD?

FLQS tracks LibertyQ U.S. Small Cap Equity Index, while FSMD tracks Fidelity Small-Mid Multifactor Index. They also come from different issuers: Franklin Templeton and Fidelity. Their fees differ too: 0.35% for FLQS and 0.29% for FSMD.

Which has better risk-adjusted returns?

FSMD currently has the higher Sharpe Ratio (1.69 vs 0.91), 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.