FSCC vs. FESM

Last updated Jun 4, 2026

FSCC (Federated Hermes MDT Small Cap Core ETF) and FESM (Fidelity Enhanced Small Cap ETF) are both Small Cap Blend Equities funds. Both are actively managed. Over the past year, FSCC returned 38.08% vs 46.73% for FESM. With a 0.97 correlation, they move nearly in lockstep. FSCC charges 0.36%/yr vs 0.28%/yr for FESM.

Performance

FSCC vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes MDT Small Cap Core ETF (FSCC) and Fidelity Enhanced Small Cap ETF (FESM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSCC achieves a 15.26% return, which is significantly lower than FESM's 19.64% return.

FSCC

• 1D: -1.31%
• 1M: 2.28%
• YTD: 15.26%
• 6M: 13.86%
• 1Y: 38.08%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FESM

• 1D: -1.51%
• 1M: 3.13%
• YTD: 19.64%
• 6M: 19.11%
• 1Y: 46.73%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FSCC vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FSCC Federated Hermes MDT Small Cap Core ETF	15.26%	15.30%	2.19%
FESM Fidelity Enhanced Small Cap ETF	19.64%	17.88%	1.48%

Correlation

The correlation between FSCC and FESM is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (All Time) Calculated using the full available price history since Aug 1, 2024	0.97

The correlation between FSCC and FESM has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

FSCC vs. FESM - Sectors Allocation Comparison

Sectors	FSCC	FESM
Industrials	21.2%	19.1%
Healthcare	17.4%	15.7%
Financial Services	17.0%	14.8%
Technology	16.9%	21.6%
Real Estate	6.6%	4.2%
Consumer Cyclical	6.4%	7.4%
Energy	4.8%	7.2%
Basic Materials	3.2%	3.5%
Consumer Defensive	2.8%	1.4%
Communication Services	2.0%	3.1%
Utilities	1.8%	2.0%

Return for Risk

FSCC vs. FESM — Risk / Return Rank

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

FSCC

FSCC Risk / Return Rank: 63
FSCC Sharpe Ratio Rank: 60
FSCC Sortino Ratio Rank: 60
FSCC Omega Ratio Rank: 55
FSCC Calmar Ratio Rank: 70
FSCC Martin Ratio Rank: 69

FESM

FESM Risk / Return Rank: 76
FESM Sharpe Ratio Rank: 75
FESM Sortino Ratio Rank: 72
FESM Omega Ratio Rank: 66
FESM Calmar Ratio Rank: 84
FESM Martin Ratio Rank: 82

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.

FSCC vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes MDT Small Cap Core ETF (FSCC) and Fidelity Enhanced Small Cap ETF (FESM). 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.

	FSCC	FESM	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.48	-0.48
Sortino ratio: Return per unit of downside risk	2.81	3.34	-0.54
Omega ratio: Gain probability vs. loss probability	1.33	1.41	-0.07
Calmar ratio: Return relative to maximum drawdown	3.46	4.61	-1.15
Martin ratio: Return relative to average drawdown	12.67	16.60	-3.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FSCC vs. FESM - Sharpe Ratio Comparison

The current FSCC Sharpe Ratio is 2.00, which is comparable to the FESM Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of FSCC and FESM, 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

	FSCC	FESM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	2.48	-0.48
Sharpe Ratio (All Time) Calculated using the full available price history	0.82	1.29	-0.47

Drawdowns

FSCC vs. FESM - Drawdown Comparison

The maximum FSCC drawdown since its inception was -27.17%, roughly equal to the maximum FESM drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for FSCC and FESM.

Drawdown Indicators

	FSCC	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-27.17%	-26.93%	-0.24%
Max Drawdown (1Y) Largest decline over 1 year	-11.07%	-10.18%	-0.89%
Current Drawdown Current decline from peak	-1.90%	-1.59%	-0.31%
Average Drawdown Average peak-to-trough decline	-5.18%	-4.79%	-0.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	2.82%	+0.19%

Volatility

FSCC vs. FESM - Volatility Comparison

Federated Hermes MDT Small Cap Core ETF (FSCC) and Fidelity Enhanced Small Cap ETF (FESM) have volatilities of 5.62% and 5.64%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSCC	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.62%	5.64%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	13.36%	13.32%	+0.04%
Volatility (1Y) Calculated over the trailing 1-year period	19.17%	18.98%	+0.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.30%	21.26%	+1.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.30%	21.26%	+1.04%

FSCC vs. FESM - Expense Ratio Comparison

FSCC has a 0.36% expense ratio, which is higher than FESM's 0.28% expense ratio.

Dividends

FSCC vs. FESM - Dividend Comparison

FSCC's dividend yield for the trailing twelve months is around 0.23%, less than FESM's 0.53% yield.

Position	TTM	2025	2024	2023
FESM Fidelity Enhanced Small Cap ETF	0.53%	0.82%	1.08%	0.06%
FSCC Federated Hermes MDT Small Cap Core ETF	0.23%	0.27%	0.16%	0.00%

Frequently Asked Questions

Can I hold both FSCC and FESM in my portfolio?

With a correlation of 0.96, FSCC and FESM 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, FSCC or FESM?

FESM has higher volatility (5.64%) compared to FSCC (5.62%). In terms of maximum drawdown, FSCC dropped -27.17% vs FESM's -26.93%.

Which ETF is better, FSCC or FESM?

On 1-year performance, FESM leads with 46.73% vs 38.08% for FSCC. On fees, FESM is cheaper at 0.28% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSCC or FESM?

Over the 1-year period, FESM has performed better with a 46.73% return vs 38.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSCC or FESM?

FESM is cheaper with a 0.28% expense ratio, compared with 0.36% for FSCC.

Which ETF pays a higher dividend yield, FSCC or FESM?

FESM has the higher dividend yield at 0.53%, compared with 0.23% for FSCC.

What is the main difference between FSCC and FESM?

They also come from different issuers: Federated Hermes and Fidelity. Their fees differ too: 0.36% for FSCC and 0.28% for FESM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.48 vs 2.00), 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.