FSMD vs. SMLF

Last updated Jun 23, 2026

FSMD (Fidelity Small-Mid Multifactor ETF) and SMLF (iShares MSCI USA Small-Cap Multifactor ETF) are both exchange-traded funds - FSMD is a Small Cap Growth Equities fund tracking the Fidelity Small-Mid Multifactor Index, while SMLF is a Small Cap Blend Equities fund tracking the MSCI USA Small Cap Diversified Multi-Factor. Both are passively managed. Over the past 5 years, FSMD returned 10.79%/yr vs 11.57%/yr for SMLF. With a 0.96 correlation, they move nearly in lockstep. FSMD charges 0.29%/yr vs 0.30%/yr for SMLF.

Performance

FSMD vs. SMLF - Performance Comparison

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

Returns By Period

In the year-to-date period, FSMD achieves a 18.77% return, which is significantly higher than SMLF's 17.27% return.

FSMD

• 1D: 0.91%
• 1M: 5.08%
• YTD: 18.77%
• 6M: 16.11%
• 1Y: 30.47%
• 3Y*: 18.87%
• 5Y*: 10.79%
• 10Y*: —

SMLF

• 1D: 0.39%
• 1M: 4.30%
• YTD: 17.27%
• 6M: 14.40%
• 1Y: 34.32%
• 3Y*: 20.78%
• 5Y*: 11.57%
• 10Y*: 12.77%

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

FSMD vs. SMLF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FSMD Fidelity Small-Mid Multifactor ETF	18.77%	8.70%	15.18%	17.37%	-11.15%	26.40%	8.94%	8.81%
SMLF iShares MSCI USA Small-Cap Multifactor ETF	17.27%	12.30%	16.33%	19.99%	-12.19%	26.53%	8.38%	5.35%

Correlation

The correlation between FSMD and SMLF is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Feb 28, 2019	0.96

The correlation between FSMD and SMLF has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

FSMD vs. SMLF - Sectors Allocation Comparison

Sectors	FSMD	SMLF
Technology	20.5%	19.1%
Industrials	20.1%	19.5%
Financial Services	14.8%	14.3%
Healthcare	11.7%	12.9%
Consumer Cyclical	10.6%	11.4%
Real Estate	6.2%	5.6%
Energy	4.1%	4.3%
Basic Materials	4.0%	4.5%
Consumer Defensive	3.1%	3.3%
Communication Services	2.9%	3.2%
Utilities	2.1%	2.0%

Return for Risk

FSMD vs. SMLF — Risk / Return Rank

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

FSMD

FSMD Risk / Return Rank: 65
FSMD Sharpe Ratio Rank: 61
FSMD Sortino Ratio Rank: 62
FSMD Omega Ratio Rank: 57
FSMD Calmar Ratio Rank: 74
FSMD Martin Ratio Rank: 72

SMLF

SMLF Risk / Return Rank: 66
SMLF Sharpe Ratio Rank: 60
SMLF Sortino Ratio Rank: 60
SMLF Omega Ratio Rank: 55
SMLF Calmar Ratio Rank: 79
SMLF Martin Ratio Rank: 74

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. SMLF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Small-Mid Multifactor ETF (FSMD) and iShares MSCI USA Small-Cap Multifactor ETF (SMLF). 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	SMLF	Difference
Sharpe ratio: Return per unit of total volatility	1.95	1.96	-0.01
Sortino ratio: Return per unit of downside risk	2.81	2.72	+0.09
Omega ratio: Gain probability vs. loss probability	1.34	1.33	+0.01
Calmar ratio: Return relative to maximum drawdown	3.63	3.96	-0.33
Martin ratio: Return relative to average drawdown	13.05	13.58	-0.53

FSMD vs. SMLF - Sharpe Ratio Comparison

The current FSMD Sharpe Ratio is 1.95, which is comparable to the SMLF Sharpe Ratio of 1.96. The chart below compares the historical Sharpe Ratios of FSMD and SMLF, 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. SMLF - Drawdown Comparison

The maximum FSMD drawdown since its inception was -40.67%, roughly equal to the maximum SMLF drawdown of -41.89%. Use the drawdown chart below to compare losses from any high point for FSMD and SMLF.

Drawdown Indicators

	FSMD	SMLF	Difference
Max Drawdown Largest peak-to-trough decline	-40.67%	-41.89%	+1.22%
Max Drawdown (1Y) Largest decline over 1 year	-8.44%	-8.71%	+0.27%
Max Drawdown (3Y) Largest decline over 3 years	-22.16%	-26.28%	+4.12%
Max Drawdown (5Y) Largest decline over 5 years	-22.16%	-26.28%	+4.12%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.89%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-5.97%	-6.58%	+0.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.34%	2.53%	-0.19%

Volatility

FSMD vs. SMLF - Volatility Comparison

The current volatility for Fidelity Small-Mid Multifactor ETF (FSMD) is 4.86%, while iShares MSCI USA Small-Cap Multifactor ETF (SMLF) has a volatility of 5.25%. This indicates that FSMD experiences smaller price fluctuations and is considered to be less risky than SMLF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSMD	SMLF	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.86%	5.25%	-0.39%
Volatility (6M) Calculated over the trailing 6-month period	11.92%	12.90%	-0.98%
Volatility (1Y) Calculated over the trailing 1-year period	15.73%	17.62%	-1.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.53%	21.12%	-2.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.41%	21.82%	-0.41%

FSMD vs. SMLF - Expense Ratio Comparison

FSMD has a 0.29% expense ratio, which is lower than SMLF's 0.30% expense ratio.

Dividends

FSMD vs. SMLF - Dividend Comparison

FSMD's dividend yield for the trailing twelve months is around 1.22%, more than SMLF's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSMD Fidelity Small-Mid Multifactor ETF	1.22%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%	0.00%	0.00%	0.00%	0.00%
SMLF iShares MSCI USA Small-Cap Multifactor ETF	1.01%	1.14%	1.33%	1.13%	1.23%	1.07%	1.33%	1.39%	1.17%	0.93%	0.78%	0.79%

Frequently Asked Questions

Can I hold both FSMD and SMLF in my portfolio?

With a correlation of 0.94, FSMD and SMLF 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 SMLF?

SMLF has higher volatility (5.25%) compared to FSMD (4.86%). In terms of maximum drawdown, FSMD dropped -40.67% vs SMLF's -41.89%.

Which ETF is better, FSMD or SMLF?

On 5-year performance, SMLF leads with 11.57% vs 10.79% for FSMD. On fees, FSMD is cheaper at 0.29% per year. On volatility, FSMD has been the lower-risk option at 4.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSMD or SMLF?

Over the 5-year period, SMLF has performed better with a 11.57% return vs 10.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSMD or SMLF?

FSMD is cheaper with a 0.29% expense ratio, compared with 0.30% for SMLF.

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

FSMD has the higher dividend yield at 1.22%, compared with 1.01% for SMLF.

What is the main difference between FSMD and SMLF?

FSMD is categorized as Small Cap Growth Equities, while SMLF is Small Cap Blend Equities. FSMD tracks Fidelity Small-Mid Multifactor Index, while SMLF tracks MSCI USA Small Cap Diversified Multi-Factor. They also come from different issuers: Fidelity and iShares. Their fees differ too: 0.29% for FSMD and 0.30% for SMLF.

Which has better risk-adjusted returns?

SMLF currently has the higher Sharpe Ratio (1.96 vs 1.95), 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.