FSEC vs. TAGG

Last updated Jun 3, 2026

FSEC (Fidelity Investment Grade Securitized ETF) and TAGG (T. Rowe Price QM U.S. Bond ETF) are both Intermediate Core Bond funds. Both are actively managed. Over the past 3 years, FSEC returned 4.89%/yr vs 4.31%/yr for TAGG. Their correlation of 0.81 suggests significant overlap in exposure. FSEC charges 0.36%/yr vs 0.08%/yr for TAGG.

Performance

FSEC vs. TAGG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Investment Grade Securitized ETF (FSEC) and T. Rowe Price QM U.S. Bond ETF (TAGG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSEC achieves a 0.97% return, which is significantly higher than TAGG's 0.34% return.

FSEC

• 1D: 0.00%
• 1M: 0.20%
• YTD: 0.97%
• 6M: 1.42%
• 1Y: 7.15%
• 3Y*: 4.89%
• 5Y*: 0.57%
• 10Y*: —

TAGG

• 1D: 0.05%
• 1M: 0.10%
• YTD: 0.34%
• 6M: 0.55%
• 1Y: 5.37%
• 3Y*: 4.31%
• 5Y*: —
• 10Y*: —

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

FSEC vs. TAGG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FSEC Fidelity Investment Grade Securitized ETF	0.97%	8.33%	2.40%	5.22%	-12.62%	-0.30%
TAGG T. Rowe Price QM U.S. Bond ETF	0.34%	7.40%	1.73%	5.72%	-12.63%	0.01%

Correlation

The correlation between FSEC and TAGG is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (All Time) Calculated using the full available price history since Sep 30, 2021	0.81

The correlation between FSEC and TAGG has been stable across timeframes, ranging from 0.78 to 0.81 - a consistent structural relationship.

Return for Risk

FSEC vs. TAGG — Risk / Return Rank

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

FSEC

FSEC Risk / Return Rank: 43
FSEC Sharpe Ratio Rank: 38
FSEC Sortino Ratio Rank: 40
FSEC Omega Ratio Rank: 39
FSEC Calmar Ratio Rank: 52
FSEC Martin Ratio Rank: 45

TAGG

TAGG Risk / Return Rank: 37
TAGG Sharpe Ratio Rank: 39
TAGG Sortino Ratio Rank: 41
TAGG Omega Ratio Rank: 39
TAGG Calmar Ratio Rank: 32
TAGG Martin Ratio Rank: 32

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.

FSEC vs. TAGG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Investment Grade Securitized ETF (FSEC) and T. Rowe Price QM U.S. Bond ETF (TAGG). 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.

	FSEC	TAGG	Difference
Sharpe ratio Return per unit of total volatility	1.35	1.41	-0.06
Sortino ratio Return per unit of downside risk	2.04	2.10	-0.05
Omega ratio Gain probability vs. loss probability	1.26	1.26	0.00
Calmar ratio Return relative to maximum drawdown	2.63	1.62	+1.01
Martin ratio Return relative to average drawdown	7.56	4.84	+2.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FSEC vs. TAGG - Sharpe Ratio Comparison

The current FSEC Sharpe Ratio is 1.35, which is comparable to the TAGG Sharpe Ratio of 1.41. The chart below compares the historical Sharpe Ratios of FSEC and TAGG, 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

	FSEC	TAGG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.35	1.41	-0.06
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.07	0.04	+0.03

Drawdowns

FSEC vs. TAGG - Drawdown Comparison

The maximum FSEC drawdown since its inception was -17.97%, roughly equal to the maximum TAGG drawdown of -17.26%. Use the drawdown chart below to compare losses from any high point for FSEC and TAGG.

Drawdown Indicators

	FSEC	TAGG	Difference
Max Drawdown Largest peak-to-trough decline	-17.97%	-17.26%	-0.71%
Max Drawdown (1Y) Largest decline over 1 year	-2.52%	-3.19%	+0.67%
Max Drawdown (3Y) Largest decline over 3 years	-7.32%	-6.40%	-0.92%
Max Drawdown (5Y) Largest decline over 5 years	-17.97%	—	—
Current Drawdown Current decline from peak	-1.09%	-1.87%	+0.78%
Average Drawdown Average peak-to-trough decline	-6.64%	-6.87%	+0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.88%	1.07%	-0.19%

Volatility

FSEC vs. TAGG - Volatility Comparison

Fidelity Investment Grade Securitized ETF (FSEC) has a higher volatility of 1.51% compared to T. Rowe Price QM U.S. Bond ETF (TAGG) at 1.21%. This indicates that FSEC's price experiences larger fluctuations and is considered to be riskier than TAGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSEC	TAGG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.51%	1.21%	+0.30%
Volatility (6M) Calculated over the trailing 6-month period	3.11%	2.73%	+0.38%
Volatility (1Y) Calculated over the trailing 1-year period	5.35%	3.83%	+1.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.76%	6.53%	+0.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.61%	6.53%	+0.08%

FSEC vs. TAGG - Expense Ratio Comparison

FSEC has a 0.36% expense ratio, which is higher than TAGG's 0.08% expense ratio.

Dividends

FSEC vs. TAGG - Dividend Comparison

FSEC's dividend yield for the trailing twelve months is around 4.44%, less than TAGG's 4.57% yield.

Position	TTM	2025	2024	2023	2022	2021
FSEC Fidelity Investment Grade Securitized ETF	4.44%	4.22%	3.22%	3.41%	2.21%	0.96%
TAGG T. Rowe Price QM U.S. Bond ETF	4.57%	4.36%	4.36%	3.48%	3.67%	0.33%

Frequently Asked Questions

Can I hold both FSEC and TAGG in my portfolio?

FSEC and TAGG have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSEC or TAGG?

FSEC has higher volatility (1.51%) compared to TAGG (1.21%). In terms of maximum drawdown, FSEC dropped -17.97% vs TAGG's -17.26%.

Which ETF is better, FSEC or TAGG?

On 3-year performance, FSEC leads with 4.89% vs 4.31% for TAGG. On fees, TAGG is cheaper at 0.08% per year. On volatility, TAGG has been the lower-risk option at 1.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSEC or TAGG?

Over the 3-year period, FSEC has performed better with a 4.89% return vs 4.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSEC or TAGG?

TAGG is cheaper with a 0.08% expense ratio, compared with 0.36% for FSEC.

Which ETF pays a higher dividend yield, FSEC or TAGG?

TAGG has the higher dividend yield at 4.57%, compared with 4.44% for FSEC.

What is the main difference between FSEC and TAGG?

They also come from different issuers: Fidelity and T. Rowe Price. Their fees differ too: 0.36% for FSEC and 0.08% for TAGG.

Which has better risk-adjusted returns?

TAGG currently has the higher Sharpe Ratio (1.41 vs 1.35), 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.