SMLF vs. FDM

Last updated Apr 1, 2026

Compare and contrast key facts about iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and First Trust Dow Jones Select MicroCap Index Fund (FDM).

SMLF and FDM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SMLF is a passively managed fund by iShares that tracks the performance of the MSCI USA Small Cap Diversified Multi-Factor. It was launched on Apr 28, 2015. FDM is a passively managed fund by First Trust that tracks the performance of the Dow Jones Select Microcap Index. It was launched on Sep 27, 2005. Both SMLF and FDM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

SMLF vs. FDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and First Trust Dow Jones Select MicroCap Index Fund (FDM). The values are adjusted to include any dividend payments, if applicable.

SMLF vs. FDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SMLF iShares MSCI USA Small-Cap Multifactor ETF	1.08%	12.30%	16.33%	19.99%	-12.19%	26.53%	8.38%	21.56%	-8.42%	12.70%
FDM First Trust Dow Jones Select MicroCap Index Fund	3.39%	18.64%	13.00%	12.76%	-11.61%	35.08%	-4.04%	27.45%	-13.53%	8.72%

Returns By Period

In the year-to-date period, SMLF achieves a 1.08% return, which is significantly lower than FDM's 3.39% return. Both investments have delivered pretty close results over the past 10 years, with SMLF having a 11.24% annualized return and FDM not far behind at 11.22%.

SMLF

• 1D: 3.34%
• 1M: -4.37%
• YTD: 1.08%
• 6M: 2.12%
• 1Y: 22.93%
• 3Y*: 15.22%
• 5Y*: 8.55%
• 10Y*: 11.24%

FDM

• 1D: 1.32%
• 1M: -3.24%
• YTD: 3.39%
• 6M: 9.17%
• 1Y: 33.86%
• 3Y*: 17.23%
• 5Y*: 7.95%
• 10Y*: 11.22%

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

SMLF vs. FDM - Expense Ratio Comparison

SMLF has a 0.30% expense ratio, which is lower than FDM's 0.60% expense ratio.

FDM

First Trust Dow Jones Select MicroCap Index Fund

SMLF

iShares MSCI USA Small-Cap Multifactor ETF

Return for Risk

SMLF vs. FDM — Risk / Return Rank

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

SMLF

SMLF Risk / Return Rank: 63
SMLF Sharpe Ratio Rank: 60
SMLF Sortino Ratio Rank: 63
SMLF Omega Ratio Rank: 59
SMLF Calmar Ratio Rank: 65
SMLF Martin Ratio Rank: 70

FDM

FDM Risk / Return Rank: 83
FDM Sharpe Ratio Rank: 81
FDM Sortino Ratio Rank: 84
FDM Omega Ratio Rank: 78
FDM Calmar Ratio Rank: 88
FDM Martin Ratio Rank: 85

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.

SMLF vs. FDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Small-Cap Multifactor ETF (SMLF) and First Trust Dow Jones Select MicroCap Index Fund (FDM). 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.

	SMLF	FDM	Difference
Sharpe ratio Return per unit of total volatility	1.02	1.53	-0.51
Sortino ratio Return per unit of downside risk	1.55	2.22	-0.67
Omega ratio Gain probability vs. loss probability	1.21	1.29	-0.08
Calmar ratio Return relative to maximum drawdown	1.56	2.78	-1.21
Martin ratio Return relative to average drawdown	6.74	9.61	-2.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMLF vs. FDM - Sharpe Ratio Comparison

The current SMLF Sharpe Ratio is 1.02, which is lower than the FDM Sharpe Ratio of 1.53. The chart below compares the historical Sharpe Ratios of SMLF and FDM, 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

	SMLF	FDM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.02	1.53	-0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.37	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.48	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.34	+0.15

Correlation

The correlation between SMLF and FDM is 0.84, 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

SMLF vs. FDM - Dividend Comparison

SMLF's dividend yield for the trailing twelve months is around 1.17%, less than FDM's 1.33% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMLF iShares MSCI USA Small-Cap Multifactor ETF	1.17%	1.14%	1.33%	1.13%	1.23%	1.07%	1.33%	1.39%	1.17%	0.93%	0.78%	0.79%
FDM First Trust Dow Jones Select MicroCap Index Fund	1.33%	1.43%	1.56%	1.81%	1.80%	1.08%	1.68%	1.37%	1.26%	0.97%	1.13%	1.45%

Drawdowns

SMLF vs. FDM - Drawdown Comparison

The maximum SMLF drawdown since its inception was -41.89%, smaller than the maximum FDM drawdown of -63.45%. Use the drawdown chart below to compare losses from any high point for SMLF and FDM.

Drawdown Indicators

	SMLF	FDM	Difference
Max Drawdown Largest peak-to-trough decline	-41.89%	-63.45%	+21.56%
Max Drawdown (1Y) Largest decline over 1 year	-14.59%	-11.99%	-2.60%
Max Drawdown (5Y) Largest decline over 5 years	-26.28%	-23.74%	-2.54%
Max Drawdown (10Y) Largest decline over 10 years	-41.89%	-47.76%	+5.87%
Current Drawdown Current decline from peak	-5.66%	-5.74%	+0.08%
Average Drawdown Average peak-to-trough decline	-6.68%	-11.43%	+4.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.38%	3.46%	-0.08%

Volatility

SMLF vs. FDM - Volatility Comparison

iShares MSCI USA Small-Cap Multifactor ETF (SMLF) has a higher volatility of 7.09% compared to First Trust Dow Jones Select MicroCap Index Fund (FDM) at 6.37%. This indicates that SMLF's price experiences larger fluctuations and is considered to be riskier than FDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMLF	FDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.09%	6.37%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	13.36%	14.17%	-0.81%
Volatility (1Y) Calculated over the trailing 1-year period	22.67%	22.29%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.14%	21.53%	-0.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.75%	23.33%	-1.58%