FSGS vs. FLQS

Last updated Jun 23, 2026

FSGS (First Trust SMID Growth Strength ETF) and FLQS (Franklin LibertyQ U.S. Small Cap Equity ETF) are both Small Cap Growth Equities funds - FSGS tracks the SMID Growth Strength Index while FLQS tracks the LibertyQ U.S. Small Cap Equity Index. Both are passively managed. Over the past 5 years, FSGS returned 2.75%/yr vs 6.10%/yr for FLQS. Their correlation of 0.84 suggests significant overlap in exposure. FSGS charges 0.60%/yr vs 0.35%/yr for FLQS.

Performance

FSGS vs. FLQS - Performance Comparison

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

Returns By Period

In the year-to-date period, FSGS achieves a 1.70% return, which is significantly lower than FLQS's 10.18% return.

FSGS

• 1D: -0.01%
• 1M: 0.31%
• YTD: 1.70%
• 6M: -0.75%
• 1Y: 7.77%
• 3Y*: 7.52%
• 5Y*: 2.75%
• 10Y*: —

FLQS

• 1D: 0.27%
• 1M: 4.08%
• YTD: 10.18%
• 6M: 7.92%
• 1Y: 19.03%
• 3Y*: 13.04%
• 5Y*: 6.10%
• 10Y*: —

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

FSGS vs. FLQS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FSGS First Trust SMID Growth Strength ETF	1.70%	2.41%	6.38%	15.98%	-13.17%	25.56%	10.26%	21.31%	-11.92%	10.39%
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	10.18%	5.04%	8.34%	21.28%	-16.88%	26.58%	10.51%	18.34%	-5.86%	9.79%

Correlation

The correlation between FSGS and FLQS 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 22, 2017	0.84

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

FSGS vs. FLQS - Sectors Allocation Comparison

Sectors	FSGS	FLQS
Financial Services	19.8%	12.7%
Industrials	19.8%	16.0%
Technology	18.8%	18.2%
Healthcare	16.8%	9.9%
Consumer Cyclical	7.9%	15.0%
Consumer Defensive	5.9%	7.8%
Energy	4.0%	4.2%
Communication Services	3.0%	1.8%
Basic Materials	2.0%	2.1%
Real Estate	1.0%	6.7%
Utilities	-	5.7%

Return for Risk

FSGS vs. FLQS — Risk / Return Rank

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

FSGS

FSGS Risk / Return Rank: 16
FSGS Sharpe Ratio Rank: 16
FSGS Sortino Ratio Rank: 16
FSGS Omega Ratio Rank: 15
FSGS Calmar Ratio Rank: 17
FSGS Martin Ratio Rank: 18

FLQS

FLQS Risk / Return Rank: 39
FLQS Sharpe Ratio Rank: 36
FLQS Sortino Ratio Rank: 38
FLQS Omega Ratio Rank: 34
FLQS Calmar Ratio Rank: 44
FLQS Martin Ratio Rank: 40

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.

FSGS vs. FLQS - Risk-Adjusted Trends Comparison

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

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FSGS	FLQS	Difference
Sharpe ratio: Return per unit of total volatility	0.51	1.25	-0.74
Sortino ratio: Return per unit of downside risk	0.84	1.92	-1.08
Omega ratio: Gain probability vs. loss probability	1.09	1.22	-0.13
Calmar ratio: Return relative to maximum drawdown	0.69	2.12	-1.43
Martin ratio: Return relative to average drawdown	1.94	6.28	-4.34

FSGS vs. FLQS - Sharpe Ratio Comparison

The current FSGS Sharpe Ratio is 0.51, which is lower than the FLQS Sharpe Ratio of 1.25. The chart below compares the historical Sharpe Ratios of FSGS and FLQS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FSGS vs. FLQS - Drawdown Comparison

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

Drawdown Indicators

	FSGS	FLQS	Difference
Max Drawdown Largest peak-to-trough decline	-43.26%	-42.16%	-1.10%
Max Drawdown (1Y) Largest decline over 1 year	-11.31%	-9.00%	-2.31%
Max Drawdown (3Y) Largest decline over 3 years	-24.08%	-23.12%	-0.96%
Max Drawdown (5Y) Largest decline over 5 years	-24.08%	-28.05%	+3.97%
Current Drawdown Current decline from peak	-4.33%	-0.23%	-4.10%
Average Drawdown Average peak-to-trough decline	-8.00%	-7.97%	-0.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	3.04%	+0.97%

Volatility

FSGS vs. FLQS - Volatility Comparison

First Trust SMID Growth Strength ETF (FSGS) and Franklin LibertyQ U.S. Small Cap Equity ETF (FLQS) have volatilities of 3.56% and 3.70%, 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

	FSGS	FLQS	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.56%	3.70%	-0.14%
Volatility (6M) Calculated over the trailing 6-month period	10.87%	10.46%	+0.41%
Volatility (1Y) Calculated over the trailing 1-year period	15.27%	15.31%	-0.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.08%	19.22%	+0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.76%	21.64%	+1.12%

FSGS vs. FLQS - Expense Ratio Comparison

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

Dividends

FSGS vs. FLQS - Dividend Comparison

FSGS has not paid dividends to shareholders, while FLQS's dividend yield for the trailing twelve months is around 1.31%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLQS Franklin LibertyQ U.S. Small Cap Equity ETF	1.31%	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 FSGS and FLQS in my portfolio?

With a correlation of 0.90, FSGS and FLQS 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, FSGS or FLQS?

FLQS has higher volatility (3.70%) compared to FSGS (3.56%). In terms of maximum drawdown, FSGS dropped -43.26% vs FLQS's -42.16%.

Which ETF is better, FSGS or FLQS?

On 5-year performance, FLQS leads with 6.10% vs 2.75% for FSGS. On fees, FLQS is cheaper at 0.35% per year. On volatility, FSGS has been the lower-risk option at 3.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSGS or FLQS?

Over the 5-year period, FLQS has performed better with a 6.10% return vs 2.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSGS or FLQS?

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

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

FLQS has the higher dividend yield at 1.31%, compared with 0.00% for FSGS.

What is the main difference between FSGS and FLQS?

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

Which has better risk-adjusted returns?

FLQS currently has the higher Sharpe Ratio (1.25 vs 0.51), 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.