FSML vs. VB

Last updated Jun 26, 2026

FSML (Franklin Small Cap Enhanced ETF) and VB (Vanguard Small-Cap ETF) are both Small Cap Blend Equities funds. FSML is actively managed, while VB is passively managed. Their correlation of 0.93 suggests significant overlap in exposure. FSML charges 0.45%/yr vs 0.05%/yr for VB.

Performance

FSML vs. VB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Small Cap Enhanced ETF (FSML) and Vanguard Small-Cap ETF (VB). 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 higher than VB's 16.89% return.

FSML

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

VB

• 1D: 0.26%
• 1M: 2.67%
• YTD: 16.89%
• 6M: 14.71%
• 1Y: 28.53%
• 3Y*: 17.06%
• 5Y*: 7.25%
• 10Y*: 12.04%

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

FSML vs. VB - Yearly Performance Comparison

	2026 (YTD)	2025
FSML Franklin Small Cap Enhanced ETF	23.14%	-3.75%
VB Vanguard Small-Cap ETF	16.89%	-1.71%

Correlation

The correlation between FSML and VB is 0.93, 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	0.93

Return for Risk

FSML vs. VB — 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.

VB

VB Risk / Return Rank: 63
VB Sharpe Ratio Rank: 58
VB Sortino Ratio Rank: 59
VB Omega Ratio Rank: 53
VB Calmar Ratio Rank: 71
VB Martin Ratio Rank: 72

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. VB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Small Cap Enhanced ETF (FSML) and Vanguard Small-Cap ETF (VB). 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	VB	Difference
Sharpe ratio: Return per unit of total volatility	—	1.73	—
Sortino ratio: Return per unit of downside risk	—	2.48	—
Omega ratio: Gain probability vs. loss probability	—	1.30	—
Calmar ratio: Return relative to maximum drawdown	—	3.19	—
Martin ratio: Return relative to average drawdown	—	11.71	—

Drawdowns

FSML vs. VB - Drawdown Comparison

The maximum FSML drawdown since its inception was -10.83%, smaller than the maximum VB drawdown of -59.56%. Use the drawdown chart below to compare losses from any high point for FSML and VB.

Drawdown Indicators

	FSML	VB	Difference
Max Drawdown Largest peak-to-trough decline	-10.83%	-59.56%	+48.73%
Max Drawdown (1Y) Largest decline over 1 year	—	-8.98%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-25.36%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-28.15%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.05%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.42%	-8.41%	+5.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.44%	—

Volatility

Volatility by Period

	FSML	VB	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	4.86%	—
Volatility (6M) Calculated over the trailing 6-month period	—	12.20%	—
Volatility (1Y) Calculated over the trailing 1-year period	20.63%	16.59%	+4.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.63%	20.78%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.63%	21.39%	-0.76%

FSML vs. VB - Expense Ratio Comparison

FSML has a 0.45% expense ratio, which is higher than VB's 0.05% expense ratio.

Dividends

FSML vs. VB - Dividend Comparison

FSML's dividend yield for the trailing twelve months is around 0.15%, less than VB's 1.47% 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%
VB Vanguard Small-Cap ETF	1.47%	1.33%	1.30%	1.55%	1.59%	1.24%	1.14%	1.39%	1.67%	1.35%	1.50%	1.48%

Frequently Asked Questions

Can I hold both FSML and VB in my portfolio?

With a correlation of 0.93, FSML and VB 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 VB?

On fees, VB is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FSML or VB?

VB is cheaper with a 0.05% expense ratio, compared with 0.45% for FSML.

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

VB has the higher dividend yield at 1.47%, compared with 0.15% for FSML.

What is the main difference between FSML and VB?

They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.45% for FSML and 0.05% for VB.