FSMD vs. USMF

Last updated Jun 16, 2026

FSMD (Fidelity Small-Mid Multifactor ETF) and USMF (WisdomTree US Multifactor Fund) are both exchange-traded funds - FSMD is a Small Cap Growth Equities fund tracking the Fidelity Small-Mid Multifactor Index, while USMF is a Mid Cap Blend Equities fund tracking the WisdomTree US Multifactor Index. Both are passively managed. Over the past 5 years, FSMD returned 10.41%/yr vs 8.31%/yr for USMF. Their correlation of 0.88 suggests significant overlap in exposure. FSMD charges 0.29%/yr vs 0.28%/yr for USMF.

Performance

FSMD vs. USMF - Performance Comparison

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

Returns By Period

In the year-to-date period, FSMD achieves a 18.15% return, which is significantly higher than USMF's 6.65% return.

FSMD

• 1D: 0.48%
• 1M: 6.83%
• YTD: 18.15%
• 6M: 16.30%
• 1Y: 30.28%
• 3Y*: 17.72%
• 5Y*: 10.41%
• 10Y*: —

USMF

• 1D: 1.25%
• 1M: 5.30%
• YTD: 6.65%
• 6M: 6.40%
• 1Y: 9.68%
• 3Y*: 13.99%
• 5Y*: 8.31%
• 10Y*: —

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

FSMD vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FSMD Fidelity Small-Mid Multifactor ETF	18.15%	8.70%	15.18%	17.37%	-11.15%	26.40%	8.94%	8.81%
USMF WisdomTree US Multifactor Fund	6.65%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	11.36%

Correlation

The correlation between FSMD and USMF 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	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Feb 28, 2019	0.88

The correlation between FSMD and USMF shifts across timeframes, from 0.78 (1 year) to 0.89 (5 years), reflecting how their relationship changes across market environments.

FSMD vs. USMF - Sectors Allocation Comparison

Sectors	FSMD	USMF
Technology	20.5%	33.2%
Industrials	20.1%	8.2%
Financial Services	14.8%	10.7%
Healthcare	11.7%	9.0%
Consumer Cyclical	10.6%	10.5%
Real Estate	6.2%	2.0%
Energy	4.1%	4.8%
Basic Materials	4.0%	0.9%
Consumer Defensive	3.1%	4.3%
Communication Services	2.9%	9.8%
Utilities	2.1%	1.9%

Return for Risk

FSMD vs. USMF — Risk / Return Rank

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

FSMD

FSMD Risk / Return Rank: 69
FSMD Sharpe Ratio Rank: 65
FSMD Sortino Ratio Rank: 68
FSMD Omega Ratio Rank: 62
FSMD Calmar Ratio Rank: 77
FSMD Martin Ratio Rank: 75

USMF

USMF Risk / Return Rank: 28
USMF Sharpe Ratio Rank: 26
USMF Sortino Ratio Rank: 25
USMF Omega Ratio Rank: 24
USMF Calmar Ratio Rank: 32
USMF 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. USMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Small-Mid Multifactor ETF (FSMD) and WisdomTree US Multifactor Fund (USMF). 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	USMF	Difference
Sharpe ratio: Return per unit of total volatility	1.95	0.86	+1.09
Sortino ratio: Return per unit of downside risk	2.80	1.29	+1.51
Omega ratio: Gain probability vs. loss probability	1.34	1.15	+0.19
Calmar ratio: Return relative to maximum drawdown	3.61	1.50	+2.10
Martin ratio: Return relative to average drawdown	12.98	4.47	+8.51

FSMD vs. USMF - Sharpe Ratio Comparison

The current FSMD Sharpe Ratio is 1.95, which is higher than the USMF Sharpe Ratio of 0.86. The chart below compares the historical Sharpe Ratios of FSMD and USMF, 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. USMF - Drawdown Comparison

The maximum FSMD drawdown since its inception was -40.67%, which is greater than USMF's maximum drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for FSMD and USMF.

Drawdown Indicators

	FSMD	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-40.67%	-36.24%	-4.43%
Max Drawdown (1Y) Largest decline over 1 year	-8.44%	-6.47%	-1.97%
Max Drawdown (3Y) Largest decline over 3 years	-22.16%	-15.39%	-6.77%
Max Drawdown (5Y) Largest decline over 5 years	-22.16%	-18.10%	-4.06%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-5.98%	-4.15%	-1.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.34%	2.17%	+0.17%

Volatility

FSMD vs. USMF - Volatility Comparison

Fidelity Small-Mid Multifactor ETF (FSMD) has a higher volatility of 5.15% compared to WisdomTree US Multifactor Fund (USMF) at 4.10%. This indicates that FSMD's price experiences larger fluctuations and is considered to be riskier than USMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSMD	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.15%	4.10%	+1.05%
Volatility (6M) Calculated over the trailing 6-month period	11.81%	8.13%	+3.68%
Volatility (1Y) Calculated over the trailing 1-year period	15.64%	11.31%	+4.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.55%	14.34%	+4.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.42%	16.97%	+4.45%

FSMD vs. USMF - Expense Ratio Comparison

FSMD has a 0.29% expense ratio, which is higher than USMF's 0.28% expense ratio.

Dividends

FSMD vs. USMF - Dividend Comparison

FSMD's dividend yield for the trailing twelve months is around 1.18%, less than USMF's 1.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FSMD Fidelity Small-Mid Multifactor ETF	1.18%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%	0.00%	0.00%
USMF WisdomTree US Multifactor Fund	1.29%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%

Frequently Asked Questions

Can I hold both FSMD and USMF in my portfolio?

FSMD and USMF 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, FSMD or USMF?

FSMD has higher volatility (5.15%) compared to USMF (4.10%). In terms of maximum drawdown, FSMD dropped -40.67% vs USMF's -36.24%.

Which ETF is better, FSMD or USMF?

On 5-year performance, FSMD leads with 10.41% vs 8.31% for USMF. On fees, USMF is cheaper at 0.28% per year. On volatility, USMF has been the lower-risk option at 4.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSMD or USMF?

Over the 5-year period, FSMD has performed better with a 10.41% return vs 8.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSMD or USMF?

USMF is cheaper with a 0.28% expense ratio, compared with 0.29% for FSMD.

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

USMF has the higher dividend yield at 1.29%, compared with 1.18% for FSMD.

What is the main difference between FSMD and USMF?

FSMD is categorized as Small Cap Growth Equities, while USMF is Mid Cap Blend Equities. FSMD tracks Fidelity Small-Mid Multifactor Index, while USMF tracks WisdomTree US Multifactor Index. They also come from different issuers: Fidelity and WisdomTree. Their fees differ too: 0.29% for FSMD and 0.28% for USMF.

Which has better risk-adjusted returns?

FSMD currently has the higher Sharpe Ratio (1.95 vs 0.86), 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.