FSCS vs. USMF

Last updated Jun 5, 2026

FSCS (First Trust SMID Capital Strength ETF) and USMF (WisdomTree US Multifactor Fund) are both Mid Cap Blend Equities funds - FSCS tracks the SMID Capital Strength Index while USMF tracks the WisdomTree US Multifactor Index. Both are passively managed. Over the past 5 years, FSCS returned 5.04%/yr vs 7.68%/yr for USMF. Their correlation of 0.81 suggests significant overlap in exposure. FSCS charges 0.60%/yr vs 0.28%/yr for USMF.

Performance

FSCS vs. USMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust SMID Capital Strength ETF (FSCS) 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, FSCS achieves a -1.02% return, which is significantly lower than USMF's 4.43% return.

FSCS

• 1D: 0.52%
• 1M: -1.92%
• YTD: -1.02%
• 6M: -0.96%
• 1Y: -0.14%
• 3Y*: 10.37%
• 5Y*: 5.04%
• 10Y*: —

USMF

• 1D: 0.08%
• 1M: 3.17%
• YTD: 4.43%
• 6M: 4.58%
• 1Y: 6.68%
• 3Y*: 14.35%
• 5Y*: 7.68%
• 10Y*: —

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

FSCS vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FSCS First Trust SMID Capital Strength ETF	-1.02%	1.77%	14.98%	16.81%	-9.11%	26.08%	5.71%	28.00%	-12.85%	13.09%
USMF WisdomTree US Multifactor Fund	4.43%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	24.06%	-4.72%	11.27%

Correlation

The correlation between FSCS and USMF is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Aug 25, 2017	0.81

The correlation between FSCS and USMF has been stable across timeframes, ranging from 0.77 to 0.87 - a consistent structural relationship.

FSCS vs. USMF - Sectors Allocation Comparison

Sectors	FSCS	USMF
Financial Services	26.6%	11.8%
Industrials	24.4%	7.8%
Consumer Cyclical	12.8%	11.1%
Consumer Defensive	12.6%	5.2%
Real Estate	5.0%	2.0%
Technology	4.8%	35.6%
Healthcare	4.6%	9.3%
Basic Materials	4.0%	0.9%
Energy	3.1%	4.1%
Communication Services	2.0%	10.3%
Utilities	-	2.0%

Return for Risk

FSCS vs. USMF — Risk / Return Rank

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

FSCS

FSCS Risk / Return Rank: 9
FSCS Sharpe Ratio Rank: 9
FSCS Sortino Ratio Rank: 9
FSCS Omega Ratio Rank: 8
FSCS Calmar Ratio Rank: 9
FSCS Martin Ratio Rank: 9

USMF

USMF Risk / Return Rank: 21
USMF Sharpe Ratio Rank: 20
USMF Sortino Ratio Rank: 19
USMF Omega Ratio Rank: 18
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.

FSCS vs. USMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust SMID Capital Strength ETF (FSCS) 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.

	FSCS	USMF	Difference
Sharpe ratio: Return per unit of total volatility	-0.01	0.62	-0.63
Sortino ratio: Return per unit of downside risk	0.08	0.94	-0.86
Omega ratio: Gain probability vs. loss probability	1.01	1.11	-0.10
Calmar ratio: Return relative to maximum drawdown	-0.02	1.04	-1.06
Martin ratio: Return relative to average drawdown	-0.04	3.11	-3.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FSCS vs. USMF - Sharpe Ratio Comparison

The current FSCS Sharpe Ratio is -0.01, which is lower than the USMF Sharpe Ratio of 0.62. The chart below compares the historical Sharpe Ratios of FSCS 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

	FSCS	USMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.01	0.62	-0.63
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.54	-0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.63	-0.24

Drawdowns

FSCS vs. USMF - Drawdown Comparison

The maximum FSCS drawdown since its inception was -43.57%, which is greater than USMF's maximum drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for FSCS and USMF.

Drawdown Indicators

	FSCS	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-43.57%	-36.24%	-7.33%
Max Drawdown (1Y) Largest decline over 1 year	-7.81%	-6.47%	-1.34%
Max Drawdown (3Y) Largest decline over 3 years	-19.55%	-15.39%	-4.16%
Max Drawdown (5Y) Largest decline over 5 years	-21.25%	-18.10%	-3.15%
Current Drawdown Current decline from peak	-6.84%	-0.49%	-6.35%
Average Drawdown Average peak-to-trough decline	-5.99%	-4.16%	-1.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.62%	2.15%	+1.47%

Volatility

FSCS vs. USMF - Volatility Comparison

First Trust SMID Capital Strength ETF (FSCS) has a higher volatility of 2.96% compared to WisdomTree US Multifactor Fund (USMF) at 2.25%. This indicates that FSCS'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

	FSCS	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.96%	2.25%	+0.71%
Volatility (6M) Calculated over the trailing 6-month period	8.24%	7.42%	+0.82%
Volatility (1Y) Calculated over the trailing 1-year period	12.69%	10.79%	+1.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.09%	14.26%	+3.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.20%	16.96%	+4.24%

FSCS vs. USMF - Expense Ratio Comparison

FSCS has a 0.60% expense ratio, which is higher than USMF's 0.28% expense ratio.

Dividends

FSCS vs. USMF - Dividend Comparison

FSCS's dividend yield for the trailing twelve months is around 0.91%, less than USMF's 1.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FSCS First Trust SMID Capital Strength ETF	0.91%	0.75%	1.12%	1.47%	1.71%	1.21%	1.33%	1.68%	1.67%	0.67%
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 FSCS and USMF in my portfolio?

FSCS and USMF have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSCS or USMF?

FSCS has higher volatility (2.96%) compared to USMF (2.25%). In terms of maximum drawdown, FSCS dropped -43.57% vs USMF's -36.24%.

Which ETF is better, FSCS or USMF?

On 5-year performance, USMF leads with 7.68% vs 5.04% for FSCS. On fees, USMF is cheaper at 0.28% per year. On volatility, USMF has been the lower-risk option at 2.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSCS or USMF?

Over the 5-year period, USMF has performed better with a 7.68% return vs 5.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSCS or USMF?

USMF is cheaper with a 0.28% expense ratio, compared with 0.60% for FSCS.

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

USMF has the higher dividend yield at 1.31%, compared with 0.91% for FSCS.

What is the main difference between FSCS and USMF?

FSCS tracks SMID Capital Strength Index, while USMF tracks WisdomTree US Multifactor Index. They also come from different issuers: First Trust and WisdomTree. Their fees differ too: 0.60% for FSCS and 0.28% for USMF.

Which has better risk-adjusted returns?

USMF currently has the higher Sharpe Ratio (0.62 vs -0.01), 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.