FSML vs. SCHA

Last updated Jun 26, 2026

FSML (Franklin Small Cap Enhanced ETF) and SCHA (Schwab U.S. Small-Cap ETF) are both Small Cap Blend Equities funds. FSML is actively managed, while SCHA is passively managed. Their correlation of 0.94 suggests significant overlap in exposure. FSML charges 0.45%/yr vs 0.04%/yr for SCHA.

Performance

FSML vs. SCHA - Performance Comparison

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

Returns By Period

In the year-to-date period, FSML achieves a 23.14% return, which is significantly lower than SCHA's 25.14% return.

FSML

• 1D: 1.09%
• 1M: 4.85%
• YTD: 23.14%
• 6M: 20.39%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

SCHA

• 1D: -0.48%
• 1M: 4.74%
• YTD: 25.14%
• 6M: 22.51%
• 1Y: 42.23%
• 3Y*: 19.88%
• 5Y*: 7.65%
• 10Y*: 12.11%

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

FSML vs. SCHA - Yearly Performance Comparison

	2026 (YTD)	2025
FSML Franklin Small Cap Enhanced ETF	23.14%	-3.75%
SCHA Schwab U.S. Small-Cap ETF	25.14%	-2.57%

Correlation

The correlation between FSML and SCHA 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 (All Time) Calculated using the full available price history since Dec 11, 2025	0.94

Return for Risk

FSML vs. SCHA — Risk / Return Rank

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

FSML

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

SCHA

SCHA Risk / Return Rank: 82
SCHA Sharpe Ratio Rank: 81
SCHA Sortino Ratio Rank: 80
SCHA Omega Ratio Rank: 72
SCHA Calmar Ratio Rank: 88
SCHA Martin Ratio Rank: 87

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. SCHA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Small Cap Enhanced ETF (FSML) and Schwab U.S. Small-Cap ETF (SCHA). 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.

	FSML	SCHA	Difference
Sharpe ratio: Return per unit of total volatility	—	2.26	—
Sortino ratio: Return per unit of downside risk	—	3.15	—
Omega ratio: Gain probability vs. loss probability	—	1.38	—
Calmar ratio: Return relative to maximum drawdown	—	4.46	—
Martin ratio: Return relative to average drawdown	—	16.34	—

Drawdowns

FSML vs. SCHA - Drawdown Comparison

The maximum FSML drawdown since its inception was -10.83%, smaller than the maximum SCHA drawdown of -42.41%. Use the drawdown chart below to compare losses from any high point for FSML and SCHA.

Drawdown Indicators

	FSML	SCHA	Difference
Max Drawdown Largest peak-to-trough decline	-10.83%	-42.41%	+31.58%
Max Drawdown (1Y) Largest decline over 1 year	—	-9.50%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-27.29%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-30.79%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.41%	—
Current Drawdown Current decline from peak	0.00%	-0.48%	+0.48%
Average Drawdown Average peak-to-trough decline	-2.42%	-7.56%	+5.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.59%	—

Volatility

Volatility by Period

	FSML	SCHA	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	6.83%	—
Volatility (6M) Calculated over the trailing 6-month period	—	14.03%	—
Volatility (1Y) Calculated over the trailing 1-year period	20.63%	18.80%	+1.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.63%	22.06%	-1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.63%	22.73%	-2.10%

FSML vs. SCHA - Expense Ratio Comparison

FSML has a 0.45% expense ratio, which is higher than SCHA's 0.04% expense ratio.

Dividends

FSML vs. SCHA - Dividend Comparison

FSML's dividend yield for the trailing twelve months is around 0.15%, less than SCHA's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSML Franklin Small Cap Enhanced ETF	0.15%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SCHA Schwab U.S. Small-Cap ETF	1.01%	1.26%	1.51%	1.42%	1.37%	1.19%	1.05%	1.39%	1.58%	1.24%	1.50%	1.48%

Frequently Asked Questions

Can I hold both FSML and SCHA in my portfolio?

With a correlation of 0.94, FSML and SCHA 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 SCHA?

On fees, SCHA is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FSML or SCHA?

SCHA is cheaper with a 0.04% expense ratio, compared with 0.45% for FSML.

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

SCHA has the higher dividend yield at 1.01%, compared with 0.15% for FSML.

What is the main difference between FSML and SCHA?

They also come from different issuers: Franklin Templeton and Charles Schwab. Their fees differ too: 0.45% for FSML and 0.04% for SCHA.