SPEM vs. FESM

Last updated Jun 14, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and FESM (Fidelity Enhanced Small Cap ETF) are both exchange-traded funds - SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI, while FESM is a Small Cap Blend Equities fund actively managed by Fidelity. SPEM is passively managed, while FESM is actively managed. Over the past year, SPEM returned 27.73% vs 51.99% for FESM. A 0.57 correlation means they provide meaningful diversification when combined. SPEM charges 0.11%/yr vs 0.28%/yr for FESM.

Performance

SPEM vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) 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, SPEM achieves a 11.32% return, which is significantly lower than FESM's 22.93% return.

SPEM

• 1D: 0.87%
• 1M: 2.50%
• YTD: 11.32%
• 6M: 13.11%
• 1Y: 27.73%
• 3Y*: 17.37%
• 5Y*: 5.60%
• 10Y*: 9.63%

FESM

• 1D: 1.00%
• 1M: 6.63%
• YTD: 22.93%
• 6M: 20.18%
• 1Y: 51.99%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SPEM vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SPEM SPDR Portfolio Emerging Markets ETF	11.32%	25.63%	11.40%	3.92%
FESM Fidelity Enhanced Small Cap ETF	22.93%	17.88%	16.22%	12.09%

Correlation

The correlation between SPEM and FESM is 0.66, 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	0.66
Correlation (All Time) Calculated using the full available price history since Nov 20, 2023	0.58

The correlation between SPEM and FESM has been stable across timeframes, ranging from 0.57 to 0.66 - a consistent structural relationship.

SPEM vs. FESM - Sectors Allocation Comparison

Sectors	SPEM	FESM
Technology	32.1%	23.3%
Financial Services	19.2%	14.6%
Consumer Cyclical	9.6%	7.7%
Industrials	8.3%	18.5%
Basic Materials	8.0%	4.0%
Communication Services	6.7%	3.1%
Energy	4.2%	5.9%
Healthcare	3.7%	16.1%
Consumer Defensive	3.6%	1.1%
Utilities	2.8%	1.8%
Real Estate	1.8%	3.9%

Return for Risk

SPEM vs. FESM — Risk / Return Rank

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

SPEM

SPEM Risk / Return Rank: 52
SPEM Sharpe Ratio Rank: 52
SPEM Sortino Ratio Rank: 49
SPEM Omega Ratio Rank: 53
SPEM Calmar Ratio Rank: 52
SPEM Martin Ratio Rank: 54

FESM

FESM Risk / Return Rank: 87
FESM Sharpe Ratio Rank: 88
FESM Sortino Ratio Rank: 86
FESM Omega Ratio Rank: 81
FESM Calmar Ratio Rank: 90
FESM Martin Ratio Rank: 89

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.

SPEM vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) 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.

	SPEM	FESM	Difference
Sharpe ratio: Return per unit of total volatility	1.55	2.53	-0.98
Sortino ratio: Return per unit of downside risk	2.16	3.37	-1.21
Omega ratio: Gain probability vs. loss probability	1.29	1.41	-0.12
Calmar ratio: Return relative to maximum drawdown	2.28	4.85	-2.57
Martin ratio: Return relative to average drawdown	8.16	17.47	-9.31

SPEM vs. FESM - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.55, which is lower than the FESM Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of SPEM 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

SPEM vs. FESM - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, which is greater than FESM's maximum drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for SPEM and FESM.

Drawdown Indicators

	SPEM	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-26.93%	-37.48%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-10.18%	-1.18%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-31.75%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	—	—
Current Drawdown Current decline from peak	-2.40%	0.00%	-2.40%
Average Drawdown Average peak-to-trough decline	-14.73%	-4.75%	-9.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	2.83%	+0.34%

Volatility

SPEM vs. FESM - Volatility Comparison

SPDR Portfolio Emerging Markets ETF (SPEM) and Fidelity Enhanced Small Cap ETF (FESM) have volatilities of 6.87% and 6.80%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SPEM	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.87%	6.80%	+0.07%
Volatility (6M) Calculated over the trailing 6-month period	14.21%	14.05%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	19.50%	-2.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.26%	21.35%	-4.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.83%	21.35%	-2.52%

SPEM vs. FESM - Expense Ratio Comparison

SPEM has a 0.11% expense ratio, which is lower than FESM's 0.28% expense ratio.

Dividends

SPEM vs. FESM - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.49%, more than FESM's 0.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FESM Fidelity Enhanced Small Cap ETF	0.52%	0.82%	1.08%	0.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SPEM SPDR Portfolio Emerging Markets ETF	2.49%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%

Frequently Asked Questions

Can I hold both SPEM and FESM in my portfolio?

SPEM and FESM have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPEM or FESM?

SPEM has higher volatility (6.87%) compared to FESM (6.80%). In terms of maximum drawdown, SPEM dropped -64.41% vs FESM's -26.93%.

Which ETF is better, SPEM or FESM?

On 1-year performance, FESM leads with 51.99% vs 27.73% for SPEM. On fees, SPEM is cheaper at 0.11% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or FESM?

Over the 1-year period, FESM has performed better with a 51.99% return vs 27.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or FESM?

SPEM is cheaper with a 0.11% expense ratio, compared with 0.28% for FESM.

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

SPEM has the higher dividend yield at 2.49%, compared with 0.52% for FESM.

What is the main difference between SPEM and FESM?

SPEM is categorized as Emerging Markets Equities, while FESM is Small Cap Blend Equities. They also come from different issuers: State Street and Fidelity. Their fees differ too: 0.11% for SPEM and 0.28% for FESM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.53 vs 1.55), 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.