SMLF vs. FSMD

Last updated Jul 14, 2026

SMLF (iShares U.S. Small-Cap Equity Factor ETF) and FSMD (Fidelity Small-Mid Multifactor ETF) are both Small Cap Blend Equities funds - SMLF tracks the STOXX U.S. Small-Cap Equity Factor Index while FSMD tracks the Fidelity Small-Mid Multifactor Index. Both are passively managed. Over the past 5 years, SMLF returned 11.54%/yr vs 10.44%/yr for FSMD. With a 0.96 correlation, they move nearly in lockstep. Both charge a 0.15% expense ratio.

Performance

SMLF vs. FSMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Small-Cap Equity Factor ETF (SMLF) and Fidelity Small-Mid Multifactor ETF (FSMD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with SMLF having a 16.36% return and FSMD slightly lower at 16.35%.

SMLF

• 1D: -0.97%
• 1M: 0.03%
• 6M: 10.70%
• YTD: 16.36%
• 1Y: 26.72%
• 3Y*: 17.82%
• 5Y*: 11.54%
• 10Y*: 12.13%

FSMD

• 1D: -1.18%
• 1M: -1.05%
• 6M: 12.13%
• YTD: 16.35%
• 1Y: 22.98%
• 3Y*: 16.17%
• 5Y*: 10.44%
• 10Y*: —

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

SMLF vs. FSMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
SMLF iShares U.S. Small-Cap Equity Factor ETF	16.36%	12.30%	16.33%	19.99%	-12.19%	26.53%	8.38%	5.35%
FSMD Fidelity Small-Mid Multifactor ETF	16.35%	8.70%	15.18%	17.37%	-11.15%	26.40%	8.94%	8.81%

Correlation

The correlation between SMLF and FSMD is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Feb 28, 2019	0.96

The correlation between SMLF and FSMD has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

SMLF vs. FSMD - Sectors Allocation Comparison

Sectors	SMLF	FSMD
Industrials	19.5%	20.1%
Technology	19.1%	20.5%
Financial Services	14.3%	14.8%
Healthcare	12.9%	11.7%
Consumer Cyclical	11.4%	10.6%
Real Estate	5.6%	6.2%
Basic Materials	4.5%	4.0%
Energy	4.3%	4.1%
Consumer Defensive	3.3%	3.1%
Communication Services	3.2%	2.9%
Utilities	2.0%	2.1%

Return for Risk

SMLF vs. FSMD — 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: 57
SMLF Sortino Ratio Rank: 58
SMLF Omega Ratio Rank: 52
SMLF Calmar Ratio Rank: 76
SMLF Martin Ratio Rank: 72

FSMD

FSMD Risk / Return Rank: 59
FSMD Sharpe Ratio Rank: 53
FSMD Sortino Ratio Rank: 57
FSMD Omega Ratio Rank: 50
FSMD Calmar Ratio Rank: 69
FSMD Martin Ratio Rank: 67

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. FSMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Small-Cap Equity Factor ETF (SMLF) and Fidelity Small-Mid Multifactor ETF (FSMD). 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.

	SMLF	FSMD	Difference
Sharpe ratio: Return per unit of total volatility	1.52	1.45	+0.07
Sortino ratio: Return per unit of downside risk	2.19	2.16	+0.03
Omega ratio: Gain probability vs. loss probability	1.26	1.26	+0.01
Calmar ratio: Return relative to maximum drawdown	3.08	2.74	+0.35
Martin ratio: Return relative to average drawdown	10.52	9.67	+0.85

SMLF vs. FSMD - Sharpe Ratio Comparison

The current SMLF Sharpe Ratio is 1.52, which is comparable to the FSMD Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of SMLF and FSMD, 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

SMLF vs. FSMD - Drawdown Comparison

The maximum SMLF drawdown since its inception was -41.89%, roughly equal to the maximum FSMD drawdown of -40.67%. Use the drawdown chart below to compare losses from any high point for SMLF and FSMD.

Drawdown Indicators

	SMLF	FSMD	Difference
Max Drawdown Largest peak-to-trough decline	-41.89%	-40.67%	-1.22%
Max Drawdown (1Y) Largest decline over 1 year	-8.71%	-8.44%	-0.27%
Max Drawdown (3Y) Largest decline over 3 years	-26.28%	-22.16%	-4.12%
Max Drawdown (5Y) Largest decline over 5 years	-26.28%	-22.16%	-4.12%
Max Drawdown (10Y) Largest decline over 10 years	-41.89%	—	—
Current Drawdown Current decline from peak	-2.74%	-3.54%	+0.80%
Average Drawdown Average peak-to-trough decline	-6.55%	-5.93%	-0.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.55%	2.38%	+0.17%

Volatility

SMLF vs. FSMD - Volatility Comparison

The current volatility for iShares U.S. Small-Cap Equity Factor ETF (SMLF) is 4.77%, while Fidelity Small-Mid Multifactor ETF (FSMD) has a volatility of 5.39%. This indicates that SMLF experiences smaller price fluctuations and is considered to be less risky than FSMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMLF	FSMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.77%	5.39%	-0.62%
Volatility (6M) Calculated over the trailing 6-month period	12.88%	12.30%	+0.58%
Volatility (1Y) Calculated over the trailing 1-year period	17.65%	15.90%	+1.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.09%	18.57%	+2.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.76%	21.38%	+0.38%

SMLF vs. FSMD - Expense Ratio Comparison

Both SMLF and FSMD have an expense ratio of 0.15%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

SMLF vs. FSMD - Dividend Comparison

SMLF's dividend yield for the trailing twelve months is around 1.02%, less than FSMD's 1.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSMD Fidelity Small-Mid Multifactor ETF	1.25%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%	0.00%	0.00%	0.00%	0.00%
SMLF iShares U.S. Small-Cap Equity Factor ETF	1.02%	1.14%	1.33%	1.13%	1.23%	1.07%	1.33%	1.39%	1.17%	0.93%	0.78%	0.79%

Frequently Asked Questions

Can I hold both SMLF and FSMD in my portfolio?

With a correlation of 0.94, SMLF and FSMD 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, SMLF or FSMD?

FSMD has higher volatility (5.39%) compared to SMLF (4.77%). In terms of maximum drawdown, SMLF dropped -41.89% vs FSMD's -40.67%.

Which ETF is better, SMLF or FSMD?

On 5-year performance, SMLF leads with 11.54% vs 10.44% for FSMD. Both ETFs have the same 0.15% expense ratio. On volatility, SMLF has been the lower-risk option at 4.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SMLF or FSMD?

Over the 5-year period, SMLF has performed better with a 11.54% return vs 10.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMLF or FSMD?

SMLF and FSMD have the same expense ratio: 0.15% per year.

Which ETF pays a higher dividend yield, SMLF or FSMD?

FSMD has the higher dividend yield at 1.25%, compared with 1.02% for SMLF.

What is the main difference between SMLF and FSMD?

SMLF tracks STOXX U.S. Small-Cap Equity Factor Index, while FSMD tracks Fidelity Small-Mid Multifactor Index. They also come from different issuers: iShares and Fidelity.

Which has better risk-adjusted returns?

SMLF currently has the higher Sharpe Ratio (1.52 vs 1.45), 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.