FSMD vs. VTSIX

Last updated Jun 3, 2026

FSMD (Fidelity Small-Mid Multifactor ETF) and VTSIX (Vanguard Tax-Managed Small-Cap Fund Institutional Shares) are both funds - FSMD is a Small Cap Growth Equities fund tracking the Fidelity Small-Mid Multifactor Index, while VTSIX is a Small Cap Blend Equities fund managed by BlackRock. Over the past 5 years, FSMD returned 9.79%/yr vs 5.64%/yr for VTSIX. Their correlation of 0.95 suggests significant overlap in exposure. FSMD charges 0.29%/yr vs 0.06%/yr for VTSIX.

Performance

FSMD vs. VTSIX - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with FSMD having a 14.94% return and VTSIX slightly higher at 15.60%.

FSMD

• 1D: 0.90%
• 1M: 3.02%
• YTD: 14.94%
• 6M: 15.74%
• 1Y: 26.74%
• 3Y*: 17.66%
• 5Y*: 9.79%
• 10Y*: —

VTSIX

• 1D: -0.15%
• 1M: 0.76%
• YTD: 15.60%
• 6M: 16.04%
• 1Y: 33.87%
• 3Y*: 14.50%
• 5Y*: 5.64%
• 10Y*: 10.72%

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

FSMD vs. VTSIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FSMD Fidelity Small-Mid Multifactor ETF	14.94%	8.70%	15.18%	17.37%	-11.15%	26.40%	8.94%	8.81%
VTSIX Vanguard Tax-Managed Small-Cap Fund Institutional Shares	15.60%	5.96%	8.64%	15.99%	-16.14%	27.12%	11.09%	6.67%

Correlation

The correlation between FSMD and VTSIX is 0.95, 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	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Mar 1, 2019	0.95

The correlation between FSMD and VTSIX has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

FSMD vs. VTSIX - Sectors Allocation Comparison

Sectors	FSMD	VTSIX
Industrials	20.7%	15.6%
Technology	18.2%	15.4%
Financial Services	15.4%	16.7%
Healthcare	11.6%	10.9%
Consumer Cyclical	11.1%	13.4%
Real Estate	6.2%	7.8%
Energy	4.6%	6.0%
Basic Materials	3.9%	5.3%
Consumer Defensive	3.3%	3.5%
Communication Services	2.8%	3.5%
Utilities	2.2%	1.9%

Return for Risk

FSMD vs. VTSIX — Risk / Return Rank

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

FSMD

FSMD Risk / Return Rank: 55
FSMD Sharpe Ratio Rank: 50
FSMD Sortino Ratio Rank: 52
FSMD Omega Ratio Rank: 49
FSMD Calmar Ratio Rank: 63
FSMD Martin Ratio Rank: 62

VTSIX

VTSIX Risk / Return Rank: 54
VTSIX Sharpe Ratio Rank: 43
VTSIX Sortino Ratio Rank: 43
VTSIX Omega Ratio Rank: 38
VTSIX Calmar Ratio Rank: 83
VTSIX Martin Ratio Rank: 65

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. VTSIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Small-Mid Multifactor ETF (FSMD) and Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX). 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	VTSIX	Difference
Sharpe ratio Return per unit of total volatility	1.76	1.91	-0.15
Sortino ratio Return per unit of downside risk	2.55	2.77	-0.22
Omega ratio Gain probability vs. loss probability	1.31	1.33	-0.02
Calmar ratio Return relative to maximum drawdown	3.16	3.83	-0.67
Martin ratio Return relative to average drawdown	11.42	12.75	-1.34
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. VTSIX - Sharpe Ratio Comparison

The current FSMD Sharpe Ratio is 1.76, which is comparable to the VTSIX Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of FSMD and VTSIX, 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	VTSIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	1.91	-0.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.26	+0.27
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.47	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.45	+0.11

Drawdowns

FSMD vs. VTSIX - Drawdown Comparison

The maximum FSMD drawdown since its inception was -40.67%, smaller than the maximum VTSIX drawdown of -57.81%. Use the drawdown chart below to compare losses from any high point for FSMD and VTSIX.

Drawdown Indicators

	FSMD	VTSIX	Difference
Max Drawdown Largest peak-to-trough decline	-40.67%	-57.81%	+17.14%
Max Drawdown (1Y) Largest decline over 1 year	-8.44%	-8.59%	+0.15%
Max Drawdown (3Y) Largest decline over 3 years	-22.16%	-27.92%	+5.76%
Max Drawdown (5Y) Largest decline over 5 years	-22.16%	-27.92%	+5.76%
Max Drawdown (10Y) Largest decline over 10 years	—	-43.86%	—
Current Drawdown Current decline from peak	0.00%	-0.91%	+0.91%
Average Drawdown Average peak-to-trough decline	-6.01%	-8.93%	+2.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.34%	2.58%	-0.24%

Volatility

FSMD vs. VTSIX - Volatility Comparison

Fidelity Small-Mid Multifactor ETF (FSMD) and Vanguard Tax-Managed Small-Cap Fund Institutional Shares (VTSIX) have volatilities of 4.50% and 4.43%, 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

	FSMD	VTSIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.50%	4.43%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	11.39%	11.66%	-0.27%
Volatility (1Y) Calculated over the trailing 1-year period	15.26%	17.55%	-2.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.48%	21.46%	-2.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.43%	23.11%	-1.68%

FSMD vs. VTSIX - Expense Ratio Comparison

FSMD has a 0.29% expense ratio, which is higher than VTSIX's 0.06% expense ratio.

Dividends

FSMD vs. VTSIX - Dividend Comparison

FSMD's dividend yield for the trailing twelve months is around 1.21%, more than VTSIX's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSMD Fidelity Small-Mid Multifactor ETF	1.21%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%	0.00%	0.00%	0.00%	0.00%
VTSIX Vanguard Tax-Managed Small-Cap Fund Institutional Shares	1.19%	1.31%	1.47%	1.52%	1.54%	1.19%	1.11%	1.17%	1.29%	1.13%	1.03%	1.30%

Frequently Asked Questions

Can I hold both FSMD and VTSIX in my portfolio?

With a correlation of 0.95, FSMD and VTSIX 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 VTSIX?

FSMD has higher volatility (4.50%) compared to VTSIX (4.43%). In terms of maximum drawdown, FSMD dropped -40.67% vs VTSIX's -57.81%.

Which has better risk-adjusted returns?

VTSIX currently has the higher Sharpe Ratio (1.91 vs 1.76), 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.