SMEAX vs. LMSIX

Last updated Jun 4, 2026

SMEAX (Invesco Small Cap Equity Fund Class A) and LMSIX (Franklin U.S. Small Cap Equity Fund) are both Small Cap Blend Equities funds. Over the past 10 years, SMEAX returned 10.54%/yr vs 11.23%/yr for LMSIX. With a 0.96 correlation, they move nearly in lockstep. SMEAX charges 1.22%/yr vs 1.03%/yr for LMSIX.

Performance

SMEAX vs. LMSIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Small Cap Equity Fund Class A (SMEAX) and Franklin U.S. Small Cap Equity Fund (LMSIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SMEAX achieves a 17.71% return, which is significantly higher than LMSIX's 16.18% return. Over the past 10 years, SMEAX has underperformed LMSIX with an annualized return of 10.54%, while LMSIX has yielded a comparatively higher 11.23% annualized return.

SMEAX

• 1D: 1.99%
• 1M: 5.02%
• YTD: 17.71%
• 6M: 16.13%
• 1Y: 28.43%
• 3Y*: 18.16%
• 5Y*: 7.14%
• 10Y*: 10.54%

LMSIX

• 1D: 1.17%
• 1M: 3.36%
• YTD: 16.18%
• 6M: 15.04%
• 1Y: 41.69%
• 3Y*: 21.49%
• 5Y*: 9.34%
• 10Y*: 11.23%

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

SMEAX vs. LMSIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMEAX Invesco Small Cap Equity Fund Class A	17.71%	7.84%	17.80%	15.95%	-20.62%	19.62%	27.25%	26.05%	-15.42%	13.59%
LMSIX Franklin U.S. Small Cap Equity Fund	16.18%	20.19%	9.90%	18.80%	-15.16%	29.12%	11.29%	20.75%	-15.61%	8.81%

Correlation

The correlation between SMEAX and LMSIX is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 3, 2001	0.96

The correlation between SMEAX and LMSIX has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.

Return for Risk

SMEAX vs. LMSIX — Risk / Return Rank

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

SMEAX

SMEAX Risk / Return Rank: 30
SMEAX Sharpe Ratio Rank: 27
SMEAX Sortino Ratio Rank: 26
SMEAX Omega Ratio Rank: 26
SMEAX Calmar Ratio Rank: 35
SMEAX Martin Ratio Rank: 38

LMSIX

LMSIX Risk / Return Rank: 72
LMSIX Sharpe Ratio Rank: 67
LMSIX Sortino Ratio Rank: 62
LMSIX Omega Ratio Rank: 54
LMSIX Calmar Ratio Rank: 91
LMSIX Martin Ratio Rank: 86

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.

SMEAX vs. LMSIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Small Cap Equity Fund Class A (SMEAX) and Franklin U.S. Small Cap Equity Fund (LMSIX). 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.

	SMEAX	LMSIX	Difference
Sharpe ratio Return per unit of total volatility	1.49	2.39	-0.90
Sortino ratio Return per unit of downside risk	2.12	3.31	-1.18
Omega ratio Gain probability vs. loss probability	1.27	1.41	-0.14
Calmar ratio Return relative to maximum drawdown	2.23	4.76	-2.53
Martin ratio Return relative to average drawdown	8.25	16.58	-8.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMEAX vs. LMSIX - Sharpe Ratio Comparison

The current SMEAX Sharpe Ratio is 1.49, which is lower than the LMSIX Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of SMEAX and LMSIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SMEAX	LMSIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.49	2.39	-0.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.43	-0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.46	0.48	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.36	0.34	+0.02

Drawdowns

SMEAX vs. LMSIX - Drawdown Comparison

The maximum SMEAX drawdown since its inception was -56.69%, smaller than the maximum LMSIX drawdown of -61.16%. Use the drawdown chart below to compare losses from any high point for SMEAX and LMSIX.

Drawdown Indicators

	SMEAX	LMSIX	Difference
Max Drawdown Largest peak-to-trough decline	-56.69%	-61.16%	+4.47%
Max Drawdown (1Y) Largest decline over 1 year	-13.43%	-9.22%	-4.21%
Max Drawdown (3Y) Largest decline over 3 years	-24.61%	-26.80%	+2.19%
Max Drawdown (5Y) Largest decline over 5 years	-31.42%	-27.66%	-3.76%
Max Drawdown (10Y) Largest decline over 10 years	-45.01%	-50.26%	+5.25%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.41%	-10.89%	+0.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.62%	2.64%	+0.98%

Volatility

SMEAX vs. LMSIX - Volatility Comparison

Invesco Small Cap Equity Fund Class A (SMEAX) has a higher volatility of 5.76% compared to Franklin U.S. Small Cap Equity Fund (LMSIX) at 5.31%. This indicates that SMEAX's price experiences larger fluctuations and is considered to be riskier than LMSIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMEAX	LMSIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.76%	5.31%	+0.45%
Volatility (6M) Calculated over the trailing 6-month period	16.30%	12.90%	+3.40%
Volatility (1Y) Calculated over the trailing 1-year period	20.14%	18.36%	+1.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.61%	21.95%	-0.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.13%	23.50%	-0.37%

SMEAX vs. LMSIX - Expense Ratio Comparison

SMEAX has a 1.22% expense ratio, which is higher than LMSIX's 1.03% expense ratio.

Dividends

SMEAX vs. LMSIX - Dividend Comparison

SMEAX's dividend yield for the trailing twelve months is around 7.94%, more than LMSIX's 5.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LMSIX Franklin U.S. Small Cap Equity Fund	5.46%	6.35%	4.05%	3.70%	5.18%	21.64%	3.60%	1.48%	11.17%	8.85%	4.79%	7.52%
SMEAX Invesco Small Cap Equity Fund Class A	7.94%	9.34%	8.09%	0.40%	2.95%	19.02%	6.03%	11.18%	18.53%	5.38%	5.38%	6.51%

Frequently Asked Questions

Can I hold both SMEAX and LMSIX in my portfolio?

With a correlation of 0.91, SMEAX and LMSIX 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, SMEAX or LMSIX?

SMEAX has higher volatility (5.76%) compared to LMSIX (5.31%). In terms of maximum drawdown, SMEAX dropped -56.69% vs LMSIX's -61.16%.

Which has better risk-adjusted returns?

LMSIX currently has the higher Sharpe Ratio (2.39 vs 1.49), 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.