FSMD vs. FMDE

Last updated Jun 9, 2026

FSMD (Fidelity Small-Mid Multifactor ETF) and FMDE (Fidelity Enhanced Mid Cap ETF) are both exchange-traded funds - FSMD is a Small Cap Growth Equities fund tracking the Fidelity Small-Mid Multifactor Index, while FMDE is a Mid Cap Blend Equities fund actively managed by Fidelity. FSMD is passively managed, while FMDE is actively managed. Over the past year, FSMD returned 23.49% vs 17.86% for FMDE. Their correlation of 0.92 suggests significant overlap in exposure. FSMD charges 0.29%/yr vs 0.23%/yr for FMDE.

Performance

FSMD vs. FMDE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Small-Mid Multifactor ETF (FSMD) and Fidelity Enhanced Mid Cap ETF (FMDE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSMD achieves a 13.60% return, which is significantly higher than FMDE's 8.21% return.

FSMD

• 1D: 0.40%
• 1M: 0.04%
• YTD: 13.60%
• 6M: 13.89%
• 1Y: 23.49%
• 3Y*: 16.61%
• 5Y*: 9.34%
• 10Y*: —

FMDE

• 1D: -0.18%
• 1M: 1.08%
• YTD: 8.21%
• 6M: 8.53%
• 1Y: 17.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FSMD vs. FMDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FSMD Fidelity Small-Mid Multifactor ETF	13.60%	8.70%	15.18%	9.75%
FMDE Fidelity Enhanced Mid Cap ETF	8.21%	12.19%	21.76%	8.91%

Correlation

The correlation between FSMD and FMDE 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 (All Time) Calculated using the full available price history since Nov 21, 2023	0.92

The correlation between FSMD and FMDE has been stable across timeframes, ranging from 0.91 to 0.92 - a consistent structural relationship.

FSMD vs. FMDE - Sectors Allocation Comparison

Sectors	FSMD	FMDE
Industrials	20.7%	20.1%
Technology	18.2%	20.6%
Financial Services	15.4%	12.9%
Healthcare	11.6%	7.8%
Consumer Cyclical	11.1%	12.1%
Real Estate	6.2%	5.7%
Energy	4.6%	6.4%
Basic Materials	3.9%	3.9%
Consumer Defensive	3.3%	1.7%
Communication Services	2.8%	3.8%
Utilities	2.2%	5.0%

Return for Risk

FSMD vs. FMDE — Risk / Return Rank

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

FSMD

FSMD Risk / Return Rank: 54
FSMD Sharpe Ratio Rank: 50
FSMD Sortino Ratio Rank: 51
FSMD Omega Ratio Rank: 47
FSMD Calmar Ratio Rank: 62
FSMD Martin Ratio Rank: 61

FMDE

FMDE Risk / Return Rank: 45
FMDE Sharpe Ratio Rank: 41
FMDE Sortino Ratio Rank: 41
FMDE Omega Ratio Rank: 39
FMDE Calmar Ratio Rank: 48
FMDE Martin Ratio Rank: 54

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.

FSMD vs. FMDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Small-Mid Multifactor ETF (FSMD) and Fidelity Enhanced Mid Cap ETF (FMDE). 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.

	FSMD	FMDE	Difference
Sharpe ratio: Return per unit of total volatility	1.53	1.31	+0.23
Sortino ratio: Return per unit of downside risk	2.24	1.89	+0.35
Omega ratio: Gain probability vs. loss probability	1.27	1.23	+0.04
Calmar ratio: Return relative to maximum drawdown	2.80	2.15	+0.64
Martin ratio: Return relative to average drawdown	10.05	8.49	+1.56
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FSMD vs. FMDE - Sharpe Ratio Comparison

The current FSMD Sharpe Ratio is 1.53, which is comparable to the FMDE Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of FSMD and FMDE, 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

	FSMD	FMDE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.53	1.31	+0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.54	1.28	-0.74

Drawdowns

FSMD vs. FMDE - Drawdown Comparison

The maximum FSMD drawdown since its inception was -40.67%, which is greater than FMDE's maximum drawdown of -21.10%. Use the drawdown chart below to compare losses from any high point for FSMD and FMDE.

Drawdown Indicators

	FSMD	FMDE	Difference
Max Drawdown Largest peak-to-trough decline	-40.67%	-21.10%	-19.57%
Max Drawdown (1Y) Largest decline over 1 year	-8.44%	-8.33%	-0.11%
Max Drawdown (3Y) Largest decline over 3 years	-22.16%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-22.16%	—	—
Current Drawdown Current decline from peak	-1.60%	-2.19%	+0.59%
Average Drawdown Average peak-to-trough decline	-6.00%	-2.64%	-3.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.34%	2.11%	+0.23%

Volatility

FSMD vs. FMDE - Volatility Comparison

Fidelity Small-Mid Multifactor ETF (FSMD) has a higher volatility of 4.25% compared to Fidelity Enhanced Mid Cap ETF (FMDE) at 3.52%. This indicates that FSMD's price experiences larger fluctuations and is considered to be riskier than FMDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSMD	FMDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.25%	3.52%	+0.73%
Volatility (6M) Calculated over the trailing 6-month period	11.55%	10.03%	+1.52%
Volatility (1Y) Calculated over the trailing 1-year period	15.40%	13.75%	+1.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.50%	16.15%	+2.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.42%	16.15%	+5.27%

FSMD vs. FMDE - Expense Ratio Comparison

FSMD has a 0.29% expense ratio, which is higher than FMDE's 0.23% expense ratio.

Dividends

FSMD vs. FMDE - Dividend Comparison

FSMD's dividend yield for the trailing twelve months is around 1.22%, more than FMDE's 1.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FMDE Fidelity Enhanced Mid Cap ETF	1.13%	1.23%	1.11%	0.10%	0.00%	0.00%	0.00%	0.00%
FSMD Fidelity Small-Mid Multifactor ETF	1.22%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%

Frequently Asked Questions

Can I hold both FSMD and FMDE in my portfolio?

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

FSMD has higher volatility (4.25%) compared to FMDE (3.52%). In terms of maximum drawdown, FSMD dropped -40.67% vs FMDE's -21.10%.

Which ETF is better, FSMD or FMDE?

On 1-year performance, FSMD leads with 23.49% vs 17.86% for FMDE. On fees, FMDE is cheaper at 0.23% per year. On volatility, FMDE has been the lower-risk option at 3.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSMD or FMDE?

Over the 1-year period, FSMD has performed better with a 23.49% return vs 17.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSMD or FMDE?

FMDE is cheaper with a 0.23% expense ratio, compared with 0.29% for FSMD.

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

FSMD has the higher dividend yield at 1.22%, compared with 1.13% for FMDE.

What is the main difference between FSMD and FMDE?

FSMD is categorized as Small Cap Growth Equities, while FMDE is Mid Cap Blend Equities. Their fees differ too: 0.29% for FSMD and 0.23% for FMDE.

Which has better risk-adjusted returns?

FSMD currently has the higher Sharpe Ratio (1.53 vs 1.31), 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.