HSMV vs. FESM

Last updated Apr 1, 2026

Compare and contrast key facts about First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) and Fidelity Enhanced Small Cap ETF (FESM).

HSMV and FESM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HSMV is an actively managed fund by First Trust. It was launched on Apr 6, 2020. FESM is an actively managed fund by Fidelity. It was launched on Dec 20, 2007.

Performance

HSMV vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) and Fidelity Enhanced Small Cap ETF (FESM). The values are adjusted to include any dividend payments, if applicable.

HSMV vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	1.79%	1.57%	13.17%	6.83%
FESM Fidelity Enhanced Small Cap ETF	0.82%	17.88%	16.22%	12.19%

Returns By Period

In the year-to-date period, HSMV achieves a 1.79% return, which is significantly higher than FESM's 0.82% return.

HSMV

• 1D: 0.83%
• 1M: -5.20%
• YTD: 1.79%
• 6M: 0.63%
• 1Y: 2.50%
• 3Y*: 7.20%
• 5Y*: 4.19%
• 10Y*: —

FESM

• 1D: 3.29%
• 1M: -4.77%
• YTD: 0.82%
• 6M: 4.42%
• 1Y: 29.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HSMV vs. FESM - Expense Ratio Comparison

HSMV has a 0.80% expense ratio, which is higher than FESM's 0.28% expense ratio.

HSMV

First Trust Horizon Managed Volatility Small/Mid ETF

FESM

Fidelity Enhanced Small Cap ETF

Return for Risk

HSMV vs. FESM — Risk / Return Rank

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

HSMV

HSMV Risk / Return Rank: 17
HSMV Sharpe Ratio Rank: 16
HSMV Sortino Ratio Rank: 16
HSMV Omega Ratio Rank: 15
HSMV Calmar Ratio Rank: 18
HSMV Martin Ratio Rank: 20

FESM

FESM Risk / Return Rank: 76
FESM Sharpe Ratio Rank: 75
FESM Sortino Ratio Rank: 76
FESM Omega Ratio Rank: 69
FESM Calmar Ratio Rank: 82
FESM Martin Ratio Rank: 80

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.

HSMV vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) 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.

	HSMV	FESM	Difference
Sharpe ratio Return per unit of total volatility	0.18	1.30	-1.12
Sortino ratio Return per unit of downside risk	0.36	1.87	-1.50
Omega ratio Gain probability vs. loss probability	1.05	1.24	-0.20
Calmar ratio Return relative to maximum drawdown	0.30	2.19	-1.88
Martin ratio Return relative to average drawdown	1.11	8.40	-7.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HSMV vs. FESM - Sharpe Ratio Comparison

The current HSMV Sharpe Ratio is 0.18, which is lower than the FESM Sharpe Ratio of 1.30. The chart below compares the historical Sharpe Ratios of HSMV and FESM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	HSMV	FESM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.18	1.30	-1.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.96	-0.28

Correlation

The correlation between HSMV and FESM is 0.75, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

HSMV vs. FESM - Dividend Comparison

HSMV's dividend yield for the trailing twelve months is around 2.03%, more than FESM's 0.63% yield.

	TTM	2025	2024	2023	2022	2021	2020
HSMV First Trust Horizon Managed Volatility Small/Mid ETF	2.03%	2.01%	1.43%	1.43%	1.26%	0.76%	0.80%
FESM Fidelity Enhanced Small Cap ETF	0.63%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%

Drawdowns

HSMV vs. FESM - Drawdown Comparison

The maximum HSMV drawdown since its inception was -19.16%, smaller than the maximum FESM drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for HSMV and FESM.

Drawdown Indicators

	HSMV	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-19.16%	-26.93%	+7.77%
Max Drawdown (1Y) Largest decline over 1 year	-10.57%	-13.54%	+2.97%
Max Drawdown (5Y) Largest decline over 5 years	-19.16%	—	—
Current Drawdown Current decline from peak	-5.59%	-7.23%	+1.64%
Average Drawdown Average peak-to-trough decline	-5.71%	-5.04%	-0.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	3.53%	-0.64%

Volatility

HSMV vs. FESM - Volatility Comparison

The current volatility for First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) is 3.53%, while Fidelity Enhanced Small Cap ETF (FESM) has a volatility of 7.40%. This indicates that HSMV experiences smaller price fluctuations and is considered to be less risky than FESM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HSMV	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.53%	7.40%	-3.87%
Volatility (6M) Calculated over the trailing 6-month period	7.15%	14.26%	-7.11%
Volatility (1Y) Calculated over the trailing 1-year period	13.63%	22.98%	-9.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.02%	21.49%	-6.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.19%	21.49%	-5.30%