VTWG vs. FSMD

Last updated Jun 4, 2026

VTWG (Vanguard Russell 2000 Growth ETF) and FSMD (Fidelity Small-Mid Multifactor ETF) are both Small Cap Growth Equities funds - VTWG tracks the Russell 2000 Growth Index while FSMD tracks the Fidelity Small-Mid Multifactor Index. Both are passively managed. Over the past 5 years, VTWG returned 5.70%/yr vs 9.66%/yr for FSMD. Their correlation of 0.90 suggests significant overlap in exposure. VTWG charges 0.15%/yr vs 0.29%/yr for FSMD.

Performance

VTWG vs. FSMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 Growth ETF (VTWG) 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, VTWG achieves a 16.90% return, which is significantly higher than FSMD's 14.85% return.

VTWG

• 1D: -1.35%
• 1M: 4.49%
• YTD: 16.90%
• 6M: 15.29%
• 1Y: 37.62%
• 3Y*: 18.23%
• 5Y*: 5.70%
• 10Y*: 11.33%

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)

VTWG vs. FSMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VTWG Vanguard Russell 2000 Growth ETF	16.90%	13.07%	15.15%	18.90%	-26.49%	2.84%	34.72%	8.33%
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 VTWG and FSMD is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (All Time) Calculated using the full available price history since Mar 1, 2019	0.90

The correlation between VTWG and FSMD has been stable across timeframes, ranging from 0.87 to 0.91 - a consistent structural relationship.

VTWG vs. FSMD - Sectors Allocation Comparison

Sectors	VTWG	FSMD
Technology	23.5%	18.2%
Industrials	23.1%	20.7%
Healthcare	22.4%	11.6%
Financial Services	8.2%	15.4%
Consumer Cyclical	7.7%	11.1%
Basic Materials	4.2%	3.9%
Energy	3.5%	4.6%
Consumer Defensive	2.6%	3.3%
Communication Services	2.2%	2.8%
Real Estate	2.1%	6.2%
Utilities	0.7%	2.2%

Return for Risk

VTWG vs. FSMD — Risk / Return Rank

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

VTWG

VTWG Risk / Return Rank: 49
VTWG Sharpe Ratio Rank: 50
VTWG Sortino Ratio Rank: 49
VTWG Omega Ratio Rank: 45
VTWG Calmar Ratio Rank: 50
VTWG Martin Ratio Rank: 53

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.

VTWG vs. FSMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 Growth ETF (VTWG) 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.

	VTWG	FSMD	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.69	+0.07
Sortino ratio: Return per unit of downside risk	2.44	2.47	-0.03
Omega ratio: Gain probability vs. loss probability	1.29	1.30	-0.01
Calmar ratio: Return relative to maximum drawdown	2.54	3.06	-0.52
Martin ratio: Return relative to average drawdown	9.16	11.03	-1.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTWG vs. FSMD - Sharpe Ratio Comparison

The current VTWG Sharpe Ratio is 1.76, which is comparable to the FSMD Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of VTWG 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

	VTWG	FSMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	1.69	+0.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.53	-0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.55	-0.03

Drawdowns

VTWG vs. FSMD - Drawdown Comparison

The maximum VTWG drawdown since its inception was -42.07%, roughly equal to the maximum FSMD drawdown of -40.67%. Use the drawdown chart below to compare losses from any high point for VTWG and FSMD.

Drawdown Indicators

	VTWG	FSMD	Difference
Max Drawdown Largest peak-to-trough decline	-42.07%	-40.67%	-1.40%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-8.44%	-6.44%
Max Drawdown (3Y) Largest decline over 3 years	-28.58%	-22.16%	-6.42%
Max Drawdown (5Y) Largest decline over 5 years	-40.49%	-22.16%	-18.33%
Max Drawdown (10Y) Largest decline over 10 years	-42.07%	—	—
Current Drawdown Current decline from peak	-1.39%	-0.08%	-1.31%
Average Drawdown Average peak-to-trough decline	-10.53%	-6.00%	-4.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.12%	2.34%	+1.78%

Volatility

VTWG vs. FSMD - Volatility Comparison

Vanguard Russell 2000 Growth ETF (VTWG) has a higher volatility of 6.62% compared to Fidelity Small-Mid Multifactor ETF (FSMD) at 4.45%. This indicates that VTWG'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

	VTWG	FSMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.62%	4.45%	+2.17%
Volatility (6M) Calculated over the trailing 6-month period	15.90%	11.37%	+4.53%
Volatility (1Y) Calculated over the trailing 1-year period	21.50%	15.26%	+6.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.52%	18.48%	+6.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.21%	21.42%	+2.79%

VTWG vs. FSMD - Expense Ratio Comparison

VTWG has a 0.15% expense ratio, which is lower than FSMD's 0.29% expense ratio.

Dividends

VTWG vs. FSMD - Dividend Comparison

VTWG's dividend yield for the trailing twelve months is around 0.59%, 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%
VTWG Vanguard Russell 2000 Growth ETF	0.59%	0.64%	0.55%	0.79%	0.71%	0.54%	0.48%	0.72%	0.72%	0.64%	0.96%	0.72%

Frequently Asked Questions

Can I hold both VTWG and FSMD in my portfolio?

VTWG and FSMD have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VTWG or FSMD?

VTWG has higher volatility (6.62%) compared to FSMD (4.45%). In terms of maximum drawdown, VTWG dropped -42.07% vs FSMD's -40.67%.

Which ETF is better, VTWG or FSMD?

On 5-year performance, FSMD leads with 9.66% vs 5.70% for VTWG. On fees, VTWG is cheaper at 0.15% 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, VTWG or FSMD?

Over the 5-year period, FSMD has performed better with a 9.66% return vs 5.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWG or FSMD?

VTWG is cheaper with a 0.15% expense ratio, compared with 0.29% for FSMD.

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

FSMD has the higher dividend yield at 1.21%, compared with 0.59% for VTWG.

What is the main difference between VTWG and FSMD?

VTWG tracks Russell 2000 Growth Index, while FSMD tracks Fidelity Small-Mid Multifactor Index. They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.15% for VTWG and 0.29% for FSMD.

Which has better risk-adjusted returns?

VTWG currently has the higher Sharpe Ratio (1.76 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.