IQSM vs. FSMDX

Last updated Jun 23, 2026

IQSM (IQ Candriam U.S. Mid Cap Equity ETF) and FSMDX (Fidelity Mid Cap Index Fund) are both Mid Cap Blend Equities funds - IQSM tracks the IQ Candriam ESG U.S. Mid Cap Equity Index - Benchmark TR Net while FSMDX tracks the Russell Midcap Index. Both are passively managed. Over the past 3 years, IQSM returned 13.88%/yr vs 16.47%/yr for FSMDX. With a 0.97 correlation, they move nearly in lockstep. IQSM charges 0.15%/yr vs 0.03%/yr for FSMDX.

Performance

IQSM vs. FSMDX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ Candriam U.S. Mid Cap Equity ETF (IQSM) and Fidelity Mid Cap Index Fund (FSMDX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IQSM achieves a 12.62% return, which is significantly lower than FSMDX's 13.43% return.

IQSM

• 1D: 0.19%
• 1M: 2.84%
• YTD: 12.62%
• 6M: 10.34%
• 1Y: 24.75%
• 3Y*: 13.88%
• 5Y*: —
• 10Y*: —

FSMDX

• 1D: 0.99%
• 1M: 2.77%
• YTD: 13.43%
• 6M: 11.53%
• 1Y: 22.95%
• 3Y*: 16.47%
• 5Y*: 8.89%
• 10Y*: 11.79%

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

IQSM vs. FSMDX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
IQSM IQ Candriam U.S. Mid Cap Equity ETF	12.62%	7.97%	9.15%	15.82%	2.29%
FSMDX Fidelity Mid Cap Index Fund	13.43%	10.58%	15.55%	17.20%	4.67%

Correlation

The correlation between IQSM and FSMDX is 0.96 - 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 (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (All Time) Calculated using the full available price history since Oct 25, 2022	0.97

The correlation between IQSM and FSMDX has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

Return for Risk

IQSM vs. FSMDX — Risk / Return Rank

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

IQSM

IQSM Risk / Return Rank: 52
IQSM Sharpe Ratio Rank: 48
IQSM Sortino Ratio Rank: 49
IQSM Omega Ratio Rank: 45
IQSM Calmar Ratio Rank: 58
IQSM Martin Ratio Rank: 59

FSMDX

FSMDX Risk / Return Rank: 46
FSMDX Sharpe Ratio Rank: 38
FSMDX Sortino Ratio Rank: 39
FSMDX Omega Ratio Rank: 35
FSMDX Calmar Ratio Rank: 60
FSMDX Martin Ratio Rank: 57

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.

IQSM vs. FSMDX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ Candriam U.S. Mid Cap Equity ETF (IQSM) and Fidelity Mid Cap Index Fund (FSMDX). 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.

	IQSM	FSMDX	Difference
Sharpe ratio: Return per unit of total volatility	1.63	1.68	-0.04
Sortino ratio: Return per unit of downside risk	2.36	2.40	-0.04
Omega ratio: Gain probability vs. loss probability	1.28	1.29	-0.01
Calmar ratio: Return relative to maximum drawdown	2.80	2.84	-0.03
Martin ratio: Return relative to average drawdown	10.23	10.86	-0.63

IQSM vs. FSMDX - Sharpe Ratio Comparison

The current IQSM Sharpe Ratio is 1.63, which is comparable to the FSMDX Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of IQSM and FSMDX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IQSM vs. FSMDX - Drawdown Comparison

The maximum IQSM drawdown since its inception was -23.66%, smaller than the maximum FSMDX drawdown of -40.35%. Use the drawdown chart below to compare losses from any high point for IQSM and FSMDX.

Drawdown Indicators

	IQSM	FSMDX	Difference
Max Drawdown Largest peak-to-trough decline	-23.66%	-40.35%	+16.69%
Max Drawdown (1Y) Largest decline over 1 year	-8.86%	-8.16%	-0.70%
Max Drawdown (3Y) Largest decline over 3 years	-23.66%	-20.92%	-2.74%
Max Drawdown (5Y) Largest decline over 5 years	—	-26.07%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-40.35%	—
Current Drawdown Current decline from peak	-0.52%	-0.78%	+0.26%
Average Drawdown Average peak-to-trough decline	-4.81%	-4.94%	+0.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.43%	2.13%	+0.30%

Volatility

IQSM vs. FSMDX - Volatility Comparison

The current volatility for IQ Candriam U.S. Mid Cap Equity ETF (IQSM) is 4.24%, while Fidelity Mid Cap Index Fund (FSMDX) has a volatility of 4.57%. This indicates that IQSM experiences smaller price fluctuations and is considered to be less risky than FSMDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IQSM	FSMDX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.24%	4.57%	-0.33%
Volatility (6M) Calculated over the trailing 6-month period	11.43%	10.47%	+0.96%
Volatility (1Y) Calculated over the trailing 1-year period	15.25%	13.82%	+1.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.88%	18.33%	-0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.88%	19.35%	-1.47%

IQSM vs. FSMDX - Expense Ratio Comparison

IQSM has a 0.15% expense ratio, which is higher than FSMDX's 0.03% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IQSM vs. FSMDX - Dividend Comparison

IQSM's dividend yield for the trailing twelve months is around 1.07%, more than FSMDX's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSMDX Fidelity Mid Cap Index Fund	0.97%	1.10%	2.46%	1.39%	2.07%	3.35%	2.34%	2.86%	2.21%	2.17%	2.23%	2.84%
IQSM IQ Candriam U.S. Mid Cap Equity ETF	1.07%	1.18%	1.22%	1.11%	0.32%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IQSM and FSMDX in my portfolio?

With a correlation of 0.96, IQSM and FSMDX 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, IQSM or FSMDX?

FSMDX has higher volatility (4.57%) compared to IQSM (4.24%). In terms of maximum drawdown, IQSM dropped -23.66% vs FSMDX's -40.35%.

Which has better risk-adjusted returns?

FSMDX currently has the higher Sharpe Ratio (1.68 vs 1.63), 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.