FSMD vs. HSMV

Last updated Jul 14, 2026

FSMD (Fidelity Small-Mid Multifactor ETF) and HSMV (First Trust Horizon Managed Volatility Small/Mid ETF) are both Small Cap Blend Equities funds. FSMD is passively managed, while HSMV is actively managed. Over the past 5 years, FSMD returned 10.44%/yr vs 5.07%/yr for HSMV. Their correlation of 0.89 suggests significant overlap in exposure. FSMD charges 0.15%/yr vs 0.80%/yr for HSMV.

Performance

FSMD vs. HSMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Small-Mid Multifactor ETF (FSMD) and First Trust Horizon Managed Volatility Small/Mid ETF (HSMV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FSMD achieves a 16.35% return, which is significantly higher than HSMV's 9.00% return.

FSMD

• 1D: -1.18%
• 1M: -1.05%
• 6M: 12.13%
• YTD: 16.35%
• 1Y: 22.98%
• 3Y*: 16.17%
• 5Y*: 10.44%
• 10Y*: —

HSMV

• 1D: 0.33%
• 1M: 1.99%
• 6M: 6.66%
• YTD: 9.00%
• 1Y: 9.53%
• 3Y*: 8.92%
• 5Y*: 5.07%
• 10Y*: —

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

FSMD vs. HSMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FSMD Fidelity Small-Mid Multifactor ETF	16.35%	8.70%	15.18%	17.37%	-11.15%	26.40%	54.60%
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	9.00%	1.57%	13.17%	5.01%	-9.44%	23.72%	34.70%

Correlation

The correlation between FSMD and HSMV is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 7, 2020	0.89

Over the past year, the correlation between FSMD and HSMV has dropped to 0.63 - well below their long-term average of 0.89, suggesting their price drivers have been diverging.

FSMD vs. HSMV - Sectors Allocation Comparison

Sectors	FSMD	HSMV
Technology	20.5%	1.9%
Industrials	20.1%	14.6%
Financial Services	14.8%	16.7%
Healthcare	11.7%	4.7%
Consumer Cyclical	10.6%	7.9%
Real Estate	6.2%	24.3%
Energy	4.1%	2.8%
Basic Materials	4.0%	5.8%
Consumer Defensive	3.1%	7.2%
Communication Services	2.9%	2.4%
Utilities	2.1%	11.7%

Return for Risk

FSMD vs. HSMV — Risk / Return Rank

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

FSMD

FSMD Risk / Return Rank: 59
FSMD Sharpe Ratio Rank: 53
FSMD Sortino Ratio Rank: 57
FSMD Omega Ratio Rank: 50
FSMD Calmar Ratio Rank: 69
FSMD Martin Ratio Rank: 67

HSMV

HSMV Risk / Return Rank: 30
HSMV Sharpe Ratio Rank: 30
HSMV Sortino Ratio Rank: 32
HSMV Omega Ratio Rank: 27
HSMV Calmar Ratio Rank: 30
HSMV 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.

FSMD vs. HSMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Small-Mid Multifactor ETF (FSMD) and First Trust Horizon Managed Volatility Small/Mid ETF (HSMV). 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.

	FSMD	HSMV	Difference
Sharpe ratio: Return per unit of total volatility	1.45	0.91	+0.55
Sortino ratio: Return per unit of downside risk	2.16	1.41	+0.75
Omega ratio: Gain probability vs. loss probability	1.26	1.16	+0.10
Calmar ratio: Return relative to maximum drawdown	2.74	1.22	+1.51
Martin ratio: Return relative to average drawdown	9.67	3.68	+6.00

FSMD vs. HSMV - Sharpe Ratio Comparison

The current FSMD Sharpe Ratio is 1.45, which is higher than the HSMV Sharpe Ratio of 0.91. The chart below compares the historical Sharpe Ratios of FSMD and HSMV, 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

FSMD vs. HSMV - Drawdown Comparison

The maximum FSMD drawdown since its inception was -40.67%, which is greater than HSMV's maximum drawdown of -19.16%. Use the drawdown chart below to compare losses from any high point for FSMD and HSMV.

Drawdown Indicators

	FSMD	HSMV	Difference
Max Drawdown Largest peak-to-trough decline	-40.67%	-19.16%	-21.51%
Max Drawdown (1Y) Largest decline over 1 year	-8.44%	-7.83%	-0.61%
Max Drawdown (3Y) Largest decline over 3 years	-22.16%	-15.45%	-6.71%
Max Drawdown (5Y) Largest decline over 5 years	-22.16%	-19.16%	-3.00%
Current Drawdown Current decline from peak	-3.54%	-0.05%	-3.49%
Average Drawdown Average peak-to-trough decline	-5.93%	-5.54%	-0.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.38%	2.60%	-0.22%

Volatility

FSMD vs. HSMV - Volatility Comparison

Fidelity Small-Mid Multifactor ETF (FSMD) has a higher volatility of 5.39% compared to First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) at 3.11%. This indicates that FSMD's price experiences larger fluctuations and is considered to be riskier than HSMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSMD	HSMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.39%	3.11%	+2.28%
Volatility (6M) Calculated over the trailing 6-month period	12.30%	7.70%	+4.60%
Volatility (1Y) Calculated over the trailing 1-year period	15.90%	10.56%	+5.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.57%	14.97%	+3.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.38%	15.99%	+5.39%

FSMD vs. HSMV - Expense Ratio Comparison

FSMD has a 0.15% expense ratio, which is lower than HSMV's 0.80% expense ratio.

Dividends

FSMD vs. HSMV - Dividend Comparison

FSMD's dividend yield for the trailing twelve months is around 1.25%, less than HSMV's 1.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
FSMD Fidelity Small-Mid Multifactor ETF	1.25%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	1.89%	2.01%	1.43%	1.43%	1.26%	0.76%	0.80%	0.00%

Frequently Asked Questions

Can I hold both FSMD and HSMV in my portfolio?

FSMD and HSMV have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FSMD or HSMV?

FSMD has higher volatility (5.39%) compared to HSMV (3.11%). In terms of maximum drawdown, FSMD dropped -40.67% vs HSMV's -19.16%.

Which ETF is better, FSMD or HSMV?

On 5-year performance, FSMD leads with 10.44% vs 5.07% for HSMV. On fees, FSMD is cheaper at 0.15% per year. On volatility, HSMV has been the lower-risk option at 3.11%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSMD or HSMV?

Over the 5-year period, FSMD has performed better with a 10.44% return vs 5.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSMD or HSMV?

FSMD is cheaper with a 0.15% expense ratio, compared with 0.80% for HSMV.

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

HSMV has the higher dividend yield at 1.89%, compared with 1.25% for FSMD.

What is the main difference between FSMD and HSMV?

They also come from different issuers: Fidelity and First Trust. Their fees differ too: 0.15% for FSMD and 0.80% for HSMV.

Which has better risk-adjusted returns?

FSMD currently has the higher Sharpe Ratio (1.45 vs 0.91), 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.