IZRL vs. FESM

Last updated Jun 26, 2026

IZRL (ARK Israel Innovative Technology ETF) and FESM (Fidelity Enhanced Small Cap ETF) are both exchange-traded funds - IZRL is a Technology Equities fund tracking the ARK Israeli Innovation Index, while FESM is a Small Cap Blend Equities fund actively managed by Fidelity. IZRL is passively managed, while FESM is actively managed. Over the past year, IZRL returned 11.87% vs 53.08% for FESM. A 0.68 correlation means they provide meaningful diversification when combined. IZRL charges 0.49%/yr vs 0.28%/yr for FESM.

Performance

IZRL vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ARK Israel Innovative Technology ETF (IZRL) 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, IZRL achieves a -3.51% return, which is significantly lower than FESM's 26.53% return.

IZRL

• 1D: -0.55%
• 1M: -8.97%
• YTD: -3.51%
• 6M: -3.99%
• 1Y: 11.87%
• 3Y*: 17.12%
• 5Y*: -1.67%
• 10Y*: —

FESM

• 1D: 0.85%
• 1M: 4.44%
• YTD: 26.53%
• 6M: 23.65%
• 1Y: 53.08%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IZRL vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
IZRL ARK Israel Innovative Technology ETF	-3.51%	36.94%	15.28%	11.74%
FESM Fidelity Enhanced Small Cap ETF	26.53%	17.88%	16.22%	12.09%

Correlation

The correlation between IZRL and FESM is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (All Time) Calculated using the full available price history since Nov 20, 2023	0.68

The correlation between IZRL and FESM has been stable across timeframes, ranging from 0.62 to 0.68 - a consistent structural relationship.

IZRL vs. FESM - Sectors Allocation Comparison

Sectors	IZRL	FESM
Technology	36.7%	23.3%
Healthcare	14.9%	16.1%
Communication Services	10.8%	3.1%
Financial Services	5.1%	14.6%
Industrials	3.2%	18.5%
Consumer Cyclical	2.0%	7.7%
Consumer Defensive	1.8%	1.1%
Basic Materials	-	4.0%
Energy	-	5.9%
Real Estate	-	3.9%
Utilities	-	1.8%

Return for Risk

IZRL vs. FESM — Risk / Return Rank

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

IZRL

IZRL Risk / Return Rank: 17
IZRL Sharpe Ratio Rank: 17
IZRL Sortino Ratio Rank: 18
IZRL Omega Ratio Rank: 17
IZRL Calmar Ratio Rank: 17
IZRL Martin Ratio Rank: 18

FESM

FESM Risk / Return Rank: 90
FESM Sharpe Ratio Rank: 92
FESM Sortino Ratio Rank: 90
FESM Omega Ratio Rank: 85
FESM Calmar Ratio Rank: 92
FESM Martin Ratio Rank: 91

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.

IZRL vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ARK Israel Innovative Technology ETF (IZRL) 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.

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.

	IZRL	FESM	Difference
Sharpe ratio: Return per unit of total volatility	0.54	2.74	-2.21
Sortino ratio: Return per unit of downside risk	0.90	3.62	-2.72
Omega ratio: Gain probability vs. loss probability	1.10	1.45	-0.34
Calmar ratio: Return relative to maximum drawdown	0.65	5.24	-4.59
Martin ratio: Return relative to average drawdown	1.80	18.87	-17.07

IZRL vs. FESM - Sharpe Ratio Comparison

The current IZRL Sharpe Ratio is 0.54, which is lower than the FESM Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of IZRL and FESM, 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

IZRL vs. FESM - Drawdown Comparison

The maximum IZRL drawdown since its inception was -59.98%, which is greater than FESM's maximum drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for IZRL and FESM.

Drawdown Indicators

	IZRL	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-59.98%	-26.93%	-33.05%
Max Drawdown (1Y) Largest decline over 1 year	-18.27%	-10.18%	-8.09%
Max Drawdown (3Y) Largest decline over 3 years	-24.60%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-53.21%	—	—
Current Drawdown Current decline from peak	-21.59%	0.00%	-21.59%
Average Drawdown Average peak-to-trough decline	-25.72%	-4.70%	-21.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.59%	2.82%	+3.77%

Volatility

IZRL vs. FESM - Volatility Comparison

ARK Israel Innovative Technology ETF (IZRL) has a higher volatility of 8.97% compared to Fidelity Enhanced Small Cap ETF (FESM) at 6.17%. This indicates that IZRL's price experiences larger fluctuations and is considered to be riskier than FESM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IZRL	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.97%	6.17%	+2.80%
Volatility (6M) Calculated over the trailing 6-month period	17.74%	14.08%	+3.66%
Volatility (1Y) Calculated over the trailing 1-year period	22.16%	19.48%	+2.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.49%	21.30%	+3.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.91%	21.30%	+3.61%

IZRL vs. FESM - Expense Ratio Comparison

IZRL has a 0.49% expense ratio, which is higher than FESM's 0.28% expense ratio.

Dividends

IZRL vs. FESM - Dividend Comparison

IZRL's dividend yield for the trailing twelve months is around 2.69%, more than FESM's 0.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
FESM Fidelity Enhanced Small Cap ETF	0.72%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%
IZRL ARK Israel Innovative Technology ETF	2.69%	2.59%	0.45%	0.00%	0.00%	0.34%	0.00%	2.15%	3.08%

Frequently Asked Questions

Can I hold both IZRL and FESM in my portfolio?

IZRL and FESM have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IZRL or FESM?

IZRL has higher volatility (8.97%) compared to FESM (6.17%). In terms of maximum drawdown, IZRL dropped -59.98% vs FESM's -26.93%.

Which ETF is better, IZRL or FESM?

On 1-year performance, FESM leads with 53.08% vs 11.87% for IZRL. On fees, FESM is cheaper at 0.28% per year. On volatility, FESM has been the lower-risk option at 6.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IZRL or FESM?

Over the 1-year period, FESM has performed better with a 53.08% return vs 11.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IZRL or FESM?

FESM is cheaper with a 0.28% expense ratio, compared with 0.49% for IZRL.

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

IZRL has the higher dividend yield at 2.69%, compared with 0.72% for FESM.

What is the main difference between IZRL and FESM?

IZRL is categorized as Technology Equities, while FESM is Small Cap Blend Equities. They also come from different issuers: ARK and Fidelity. Their fees differ too: 0.49% for IZRL and 0.28% for FESM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.74 vs 0.54), 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.