VBK vs. FSMD

Last updated Jun 4, 2026

VBK (Vanguard Small-Cap Growth ETF) and FSMD (Fidelity Small-Mid Multifactor ETF) are both Small Cap Growth Equities funds - VBK tracks the CRSP US Small Cap Growth Index while FSMD tracks the Fidelity Small-Mid Multifactor Index. Both are passively managed. Over the past 5 years, VBK returned 5.68%/yr vs 9.66%/yr for FSMD. Their correlation of 0.89 suggests significant overlap in exposure. VBK charges 0.07%/yr vs 0.29%/yr for FSMD.

Performance

VBK vs. FSMD - Performance Comparison

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

Returns By Period

In the year-to-date period, VBK achieves a 17.41% return, which is significantly higher than FSMD's 14.85% return.

VBK

• 1D: -1.06%
• 1M: 4.84%
• YTD: 17.41%
• 6M: 16.96%
• 1Y: 32.77%
• 3Y*: 17.73%
• 5Y*: 5.68%
• 10Y*: 11.74%

FSMD

• 1D: -0.08%
• 1M: 3.46%
• YTD: 14.85%
• 6M: 14.81%
• 1Y: 25.71%
• 3Y*: 17.63%
• 5Y*: 9.66%
• 10Y*: —

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

VBK vs. FSMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VBK Vanguard Small-Cap Growth ETF	17.41%	8.50%	16.50%	21.45%	-28.44%	5.66%	35.44%	11.49%
FSMD Fidelity Small-Mid Multifactor ETF	14.85%	8.70%	15.18%	17.37%	-11.15%	26.40%	8.94%	8.81%

Correlation

The correlation between VBK and FSMD is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Mar 1, 2019	0.89

The correlation between VBK and FSMD has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.

VBK vs. FSMD - Sectors Allocation Comparison

Sectors	VBK	FSMD
Technology	25.9%	18.2%
Industrials	24.7%	20.7%
Healthcare	15.3%	11.6%
Consumer Cyclical	9.6%	11.1%
Financial Services	5.6%	15.4%
Energy	4.8%	4.6%
Real Estate	3.9%	6.2%
Communication Services	3.5%	2.8%
Basic Materials	3.2%	3.9%
Consumer Defensive	2.4%	3.3%
Utilities	1.2%	2.2%

Return for Risk

VBK vs. FSMD — Risk / Return Rank

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

VBK

VBK Risk / Return Rank: 51
VBK Sharpe Ratio Rank: 49
VBK Sortino Ratio Rank: 46
VBK Omega Ratio Rank: 44
VBK Calmar Ratio Rank: 57
VBK Martin Ratio Rank: 60

FSMD

FSMD Risk / Return Rank: 53
FSMD Sharpe Ratio Rank: 48
FSMD Sortino Ratio Rank: 50
FSMD Omega Ratio Rank: 46
FSMD Calmar Ratio Rank: 61
FSMD Martin Ratio Rank: 61

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.

VBK vs. FSMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Growth ETF (VBK) 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.

	VBK	FSMD	Difference
Sharpe ratio: Return per unit of total volatility	1.72	1.69	+0.02
Sortino ratio: Return per unit of downside risk	2.38	2.47	-0.09
Omega ratio: Gain probability vs. loss probability	1.29	1.30	-0.01
Calmar ratio: Return relative to maximum drawdown	2.88	3.06	-0.18
Martin ratio: Return relative to average drawdown	10.98	11.03	-0.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VBK vs. FSMD - Sharpe Ratio Comparison

The current VBK Sharpe Ratio is 1.72, which is comparable to the FSMD Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of VBK 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.

Sharpe Ratios by Period

	VBK	FSMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.72	1.69	+0.02
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	0.53	-0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.55	-0.12

Drawdowns

VBK vs. FSMD - Drawdown Comparison

The maximum VBK drawdown since its inception was -58.68%, which is greater than FSMD's maximum drawdown of -40.67%. Use the drawdown chart below to compare losses from any high point for VBK and FSMD.

Drawdown Indicators

	VBK	FSMD	Difference
Max Drawdown Largest peak-to-trough decline	-58.68%	-40.67%	-18.01%
Max Drawdown (1Y) Largest decline over 1 year	-11.44%	-8.44%	-3.00%
Max Drawdown (3Y) Largest decline over 3 years	-27.54%	-22.16%	-5.38%
Max Drawdown (5Y) Largest decline over 5 years	-38.39%	-22.16%	-16.23%
Max Drawdown (10Y) Largest decline over 10 years	-38.70%	—	—
Current Drawdown Current decline from peak	-1.06%	-0.08%	-0.98%
Average Drawdown Average peak-to-trough decline	-10.15%	-6.00%	-4.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	2.34%	+0.65%

Volatility

VBK vs. FSMD - Volatility Comparison

Vanguard Small-Cap Growth ETF (VBK) has a higher volatility of 5.37% compared to Fidelity Small-Mid Multifactor ETF (FSMD) at 4.45%. This indicates that VBK's price experiences larger fluctuations and is considered to be riskier than FSMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBK	FSMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.37%	4.45%	+0.92%
Volatility (6M) Calculated over the trailing 6-month period	14.62%	11.37%	+3.25%
Volatility (1Y) Calculated over the trailing 1-year period	19.21%	15.26%	+3.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.48%	18.48%	+5.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.86%	21.42%	+1.44%

VBK vs. FSMD - Expense Ratio Comparison

VBK has a 0.07% expense ratio, which is lower than FSMD's 0.29% expense ratio.

Dividends

VBK vs. FSMD - Dividend Comparison

VBK's dividend yield for the trailing twelve months is around 0.45%, less than FSMD's 1.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FSMD Fidelity Small-Mid Multifactor ETF	1.21%	1.33%	1.29%	1.37%	1.54%	1.18%	1.32%	1.37%	0.00%	0.00%	0.00%	0.00%
VBK Vanguard Small-Cap Growth ETF	0.45%	0.54%	0.54%	0.68%	0.55%	0.36%	0.44%	0.57%	0.79%	0.82%	1.08%	0.98%

Frequently Asked Questions

Can I hold both VBK and FSMD in my portfolio?

VBK and FSMD have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBK or FSMD?

VBK has higher volatility (5.37%) compared to FSMD (4.45%). In terms of maximum drawdown, VBK dropped -58.68% vs FSMD's -40.67%.

Which ETF is better, VBK or FSMD?

On 5-year performance, FSMD leads with 9.66% vs 5.68% for VBK. On fees, VBK is cheaper at 0.07% per year. On volatility, FSMD has been the lower-risk option at 4.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VBK or FSMD?

Over the 5-year period, FSMD has performed better with a 9.66% return vs 5.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VBK or FSMD?

VBK is cheaper with a 0.07% expense ratio, compared with 0.29% for FSMD.

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

FSMD has the higher dividend yield at 1.21%, compared with 0.45% for VBK.

What is the main difference between VBK and FSMD?

VBK tracks CRSP US Small Cap Growth Index, while FSMD tracks Fidelity Small-Mid Multifactor Index. They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.07% for VBK and 0.29% for FSMD.

Which has better risk-adjusted returns?

VBK currently has the higher Sharpe Ratio (1.72 vs 1.69), 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.