FSML vs. FESM

Last updated Jun 6, 2026

FSML (Franklin Small Cap Enhanced ETF) and FESM (Fidelity Enhanced Small Cap ETF) are both Small Cap Blend Equities funds. Both are actively managed. With a 0.95 correlation, they move nearly in lockstep. FSML charges 0.45%/yr vs 0.28%/yr for FESM.

Performance

FSML vs. FESM - Performance Comparison

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

Returns By Period

In the year-to-date period, FSML achieves a 14.90% return, which is significantly lower than FESM's 17.57% return.

FSML

• 1D: -3.10%
• 1M: -0.56%
• YTD: 14.90%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

FESM

• 1D: -3.21%
• 1M: -1.71%
• YTD: 17.57%
• 6M: 16.65%
• 1Y: 44.38%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FSML vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025
FSML Franklin Small Cap Enhanced ETF	14.90%	-3.75%
FESM Fidelity Enhanced Small Cap ETF	17.57%	-3.58%

Correlation

The correlation between FSML and FESM is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 12, 2025	0.95

Return for Risk

FSML vs. FESM — Risk / Return Rank

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

FESM

FESM Risk / Return Rank: 75
FESM Sharpe Ratio Rank: 74
FESM Sortino Ratio Rank: 70
FESM Omega Ratio Rank: 66
FESM Calmar Ratio Rank: 83
FESM Martin Ratio Rank: 81

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.

FSML vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Small Cap Enhanced ETF (FSML) and Fidelity Enhanced Small Cap ETF (FESM). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	FSML	FESM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.31	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.14	1.24	-0.10

Drawdowns

FSML vs. FESM - Drawdown Comparison

The maximum FSML drawdown since its inception was -10.83%, smaller than the maximum FESM drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for FSML and FESM.

Drawdown Indicators

	FSML	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-10.83%	-26.93%	+16.10%
Max Drawdown (1Y) Largest decline over 1 year	—	-10.18%	—
Current Drawdown Current decline from peak	-3.10%	-3.30%	+0.20%
Average Drawdown Average peak-to-trough decline	-2.62%	-4.78%	+2.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.83%	—

Volatility

Volatility by Period

	FSML	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	6.38%	—
Volatility (6M) Calculated over the trailing 6-month period	—	13.77%	—
Volatility (1Y) Calculated over the trailing 1-year period	20.71%	19.29%	+1.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.71%	21.35%	-0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.71%	21.35%	-0.64%

FSML vs. FESM - Expense Ratio Comparison

FSML has a 0.45% expense ratio, which is higher than FESM's 0.28% expense ratio.

Dividends

FSML vs. FESM - Dividend Comparison

FSML's dividend yield for the trailing twelve months is around 0.16%, less than FESM's 0.54% yield.

Position	TTM	2025	2024	2023
FESM Fidelity Enhanced Small Cap ETF	0.54%	0.82%	1.08%	0.06%
FSML Franklin Small Cap Enhanced ETF	0.16%	0.06%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FSML and FESM in my portfolio?

With a correlation of 0.95, FSML and FESM 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 ETF is better, FSML or FESM?

On fees, FESM is cheaper at 0.28% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FSML or FESM?

FESM is cheaper with a 0.28% expense ratio, compared with 0.45% for FSML.

Which ETF pays a higher dividend yield, FSML or FESM?

FESM has the higher dividend yield at 0.54%, compared with 0.16% for FSML.

What is the main difference between FSML and FESM?

They also come from different issuers: Franklin Templeton and Fidelity. Their fees differ too: 0.45% for FSML and 0.28% for FESM.