LITL vs. FESM

Last updated Jul 21, 2026

LITL (Simplify Piper Sandler US Small-Cap PLUS Income ETF) and FESM (Fidelity Enhanced Small Cap Core ETF) are both Small Cap Blend Equities funds. Over the past year, LITL returned 27.83% vs 44.48% for FESM. Their correlation of 0.90 suggests significant overlap in exposure. LITL charges 0.91%/yr vs 0.28%/yr for FESM.

Performance

LITL vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Simplify Piper Sandler US Small-Cap PLUS Income ETF (LITL) and Fidelity Enhanced Small Cap Core ETF (FESM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LITL achieves a 16.34% return, which is significantly lower than FESM's 24.83% return.

LITL

• 1D: -0.99%
• 1M: 3.67%
• 6M: 12.34%
• YTD: 16.34%
• 1Y: 27.83%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 30.38%

FESM

• 1D: -0.61%
• 1M: 0.34%
• 6M: 16.88%
• YTD: 24.83%
• 1Y: 44.48%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 27.67%

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

LITL vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025
LITL Simplify Piper Sandler US Small-Cap PLUS Income ETF	16.34%	18.93%
FESM Fidelity Enhanced Small Cap Core ETF	24.83%	31.76%

Correlation

The correlation between LITL and FESM is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (All Time) Calculated using the full available price history since Apr 29, 2025	0.90

The correlation between LITL and FESM has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

LITL vs. FESM - Sectors Allocation Comparison

Sectors	LITL	FESM
Healthcare	21.8%	18.3%
Financial Services	18.1%	16.3%
Technology	14.1%	18.1%
Consumer Cyclical	12.2%	8.8%
Industrials	12.1%	14.4%
Real Estate	5.2%	4.4%
Energy	4.6%	4.7%
Consumer Defensive	4.1%	1.2%
Communication Services	3.9%	2.5%
Basic Materials	2.7%	4.2%
Utilities	1.3%	2.4%

Return for Risk

LITL vs. FESM — Risk / Return Rank

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

LITL

LITL Risk / Return Rank: 68
LITL Sharpe Ratio Rank: 64
LITL Sortino Ratio Rank: 68
LITL Omega Ratio Rank: 60
LITL Calmar Ratio Rank: 78
LITL Martin Ratio Rank: 70

FESM

FESM Risk / Return Rank: 89
FESM Sharpe Ratio Rank: 90
FESM Sortino Ratio Rank: 89
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.

LITL vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Simplify Piper Sandler US Small-Cap PLUS Income ETF (LITL) and Fidelity Enhanced Small Cap Core 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.

	LITL	FESM	Difference
Sharpe ratio: Return per unit of total volatility	1.54	2.32	-0.78
Sortino ratio: Return per unit of downside risk	2.31	3.18	-0.87
Omega ratio: Gain probability vs. loss probability	1.27	1.39	-0.11
Calmar ratio: Return relative to maximum drawdown	3.00	4.39	-1.39
Martin ratio: Return relative to average drawdown	9.22	15.71	-6.49

LITL vs. FESM - Sharpe Ratio Comparison

The current LITL Sharpe Ratio is 1.54, which is lower than the FESM Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of LITL 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

LITL vs. FESM - Drawdown Comparison

The maximum LITL drawdown since its inception was -9.32%, smaller than the maximum FESM drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for LITL and FESM.

Drawdown Indicators

	LITL	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-9.32%	-26.93%	+17.61%
Max Drawdown (1Y) Largest decline over 1 year	-9.32%	-10.18%	+0.86%
Current Drawdown Current decline from peak	-1.87%	-2.82%	+0.95%
Average Drawdown Average peak-to-trough decline	-2.23%	-4.62%	+2.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.03%	2.84%	+0.19%

Volatility

LITL vs. FESM - Volatility Comparison

The current volatility for Simplify Piper Sandler US Small-Cap PLUS Income ETF (LITL) is 3.45%, while Fidelity Enhanced Small Cap Core ETF (FESM) has a volatility of 4.08%. This indicates that LITL 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

	LITL	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.45%	4.08%	-0.63%
Volatility (6M) Calculated over the trailing 6-month period	12.37%	14.11%	-1.74%
Volatility (1Y) Calculated over the trailing 1-year period	18.18%	19.27%	-1.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.42%	21.12%	-2.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.42%	21.12%	-2.70%

LITL vs. FESM - Expense Ratio Comparison

LITL has a 0.91% expense ratio, which is higher than FESM's 0.28% expense ratio.

Dividends

LITL vs. FESM - Dividend Comparison

LITL's dividend yield for the trailing twelve months is around 1.50%, more than FESM's 0.73% yield.

Position	TTM	2025	2024	2023
FESM Fidelity Enhanced Small Cap Core ETF	0.73%	0.82%	1.08%	0.06%
LITL Simplify Piper Sandler US Small-Cap PLUS Income ETF	1.50%	0.71%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LITL and FESM in my portfolio?

LITL and FESM have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LITL or FESM?

FESM has higher volatility (4.08%) compared to LITL (3.45%). In terms of maximum drawdown, LITL dropped -9.32% vs FESM's -26.93%.

Which ETF is better, LITL or FESM?

On 1-year performance, FESM leads with 44.48% vs 27.83% for LITL. On fees, FESM is cheaper at 0.28% per year. On volatility, LITL has been the lower-risk option at 3.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LITL or FESM?

Over the 1-year period, FESM has performed better with a 44.48% return vs 27.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LITL or FESM?

FESM is cheaper with a 0.28% expense ratio, compared with 0.91% for LITL.

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

LITL has the higher dividend yield at 1.50%, compared with 0.73% for FESM.

What is the main difference between LITL and FESM?

They also come from different issuers: Simplify and Fidelity. Their fees differ too: 0.91% for LITL and 0.28% for FESM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.32 vs 1.54), 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.