XMMO vs. FESM

Last updated Jun 14, 2026

XMMO (Invesco S&P MidCap Momentum ETF) and FESM (Fidelity Enhanced Small Cap ETF) are both exchange-traded funds - XMMO is a Momentum fund tracking the S&P MidCap 400 Momentum Index, while FESM is a Small Cap Blend Equities fund actively managed by Fidelity. XMMO is passively managed, while FESM is actively managed. Over the past year, XMMO returned 37.93% vs 51.99% for FESM. Their correlation of 0.85 suggests significant overlap in exposure. XMMO charges 0.35%/yr vs 0.28%/yr for FESM.

Performance

XMMO vs. FESM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco S&P MidCap Momentum ETF (XMMO) and Fidelity Enhanced Small Cap ETF (FESM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with XMMO having a 22.77% return and FESM slightly higher at 22.93%.

XMMO

• 1D: 0.96%
• 1M: 3.55%
• YTD: 22.77%
• 6M: 22.33%
• 1Y: 37.93%
• 3Y*: 30.62%
• 5Y*: 15.91%
• 10Y*: 19.95%

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)

XMMO vs. FESM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XMMO Invesco S&P MidCap Momentum ETF	22.77%	13.04%	38.03%	8.95%
FESM Fidelity Enhanced Small Cap ETF	22.93%	17.88%	16.22%	12.09%

Correlation

The correlation between XMMO and FESM is 0.82, 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	0.82
Correlation (All Time) Calculated using the full available price history since Nov 20, 2023	0.85

The correlation between XMMO and FESM has been stable across timeframes, ranging from 0.82 to 0.85 - a consistent structural relationship.

XMMO vs. FESM - Sectors Allocation Comparison

Sectors	XMMO	FESM
Industrials	40.8%	18.5%
Technology	19.1%	23.3%
Basic Materials	7.0%	4.0%
Energy	6.8%	5.9%
Healthcare	6.3%	16.1%
Real Estate	5.7%	3.9%
Utilities	5.7%	1.8%
Consumer Cyclical	4.6%	7.7%
Financial Services	2.3%	14.6%
Communication Services	1.4%	3.1%
Consumer Defensive	0.5%	1.1%

Return for Risk

XMMO vs. FESM — Risk / Return Rank

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

XMMO

XMMO Risk / Return Rank: 74
XMMO Sharpe Ratio Rank: 65
XMMO Sortino Ratio Rank: 65
XMMO Omega Ratio Rank: 63
XMMO Calmar Ratio Rank: 88
XMMO Martin Ratio Rank: 89

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.

XMMO vs. FESM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco S&P MidCap Momentum ETF (XMMO) 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.

	XMMO	FESM	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.53	-0.67
Sortino ratio: Return per unit of downside risk	2.58	3.37	-0.79
Omega ratio: Gain probability vs. loss probability	1.33	1.41	-0.08
Calmar ratio: Return relative to maximum drawdown	4.41	4.85	-0.43
Martin ratio: Return relative to average drawdown	17.54	17.47	+0.07

XMMO vs. FESM - Sharpe Ratio Comparison

The current XMMO Sharpe Ratio is 1.86, which is comparable to the FESM Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of XMMO 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

XMMO vs. FESM - Drawdown Comparison

The maximum XMMO drawdown since its inception was -55.37%, which is greater than FESM's maximum drawdown of -26.93%. Use the drawdown chart below to compare losses from any high point for XMMO and FESM.

Drawdown Indicators

	XMMO	FESM	Difference
Max Drawdown Largest peak-to-trough decline	-55.37%	-26.93%	-28.44%
Max Drawdown (1Y) Largest decline over 1 year	-8.34%	-10.18%	+1.84%
Max Drawdown (3Y) Largest decline over 3 years	-24.93%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-27.91%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-36.74%	—	—
Current Drawdown Current decline from peak	-1.19%	0.00%	-1.19%
Average Drawdown Average peak-to-trough decline	-9.44%	-4.75%	-4.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.09%	2.83%	-0.74%

Volatility

XMMO vs. FESM - Volatility Comparison

Invesco S&P MidCap Momentum ETF (XMMO) has a higher volatility of 9.07% compared to Fidelity Enhanced Small Cap ETF (FESM) at 6.80%. This indicates that XMMO's price experiences larger fluctuations and is considered to be riskier than FESM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XMMO	FESM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.07%	6.80%	+2.27%
Volatility (6M) Calculated over the trailing 6-month period	16.76%	14.05%	+2.71%
Volatility (1Y) Calculated over the trailing 1-year period	19.74%	19.50%	+0.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.62%	21.35%	+0.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.35%	21.35%	+1.00%

XMMO vs. FESM - Expense Ratio Comparison

XMMO has a 0.35% expense ratio, which is higher than FESM's 0.28% expense ratio.

Dividends

XMMO vs. FESM - Dividend Comparison

XMMO's dividend yield for the trailing twelve months is around 0.61%, 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%
XMMO Invesco S&P MidCap Momentum ETF	0.61%	0.78%	0.34%	0.80%	1.43%	0.41%	0.61%	0.60%	0.19%	0.21%	0.22%	0.64%

Frequently Asked Questions

Can I hold both XMMO and FESM in my portfolio?

XMMO and FESM have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XMMO or FESM?

XMMO has higher volatility (9.07%) compared to FESM (6.80%). In terms of maximum drawdown, XMMO dropped -55.37% vs FESM's -26.93%.

Which ETF is better, XMMO or FESM?

On 1-year performance, FESM leads with 51.99% vs 37.93% for XMMO. On fees, FESM is cheaper at 0.28% per year. On volatility, FESM has been the lower-risk option at 6.80%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XMMO or FESM?

Over the 1-year period, FESM has performed better with a 51.99% return vs 37.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XMMO or FESM?

FESM is cheaper with a 0.28% expense ratio, compared with 0.35% for XMMO.

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

XMMO has the higher dividend yield at 0.61%, compared with 0.52% for FESM.

What is the main difference between XMMO and FESM?

XMMO is categorized as Momentum, while FESM is Small Cap Blend Equities. They also come from different issuers: Invesco and Fidelity. Their fees differ too: 0.35% for XMMO and 0.28% for FESM.

Which has better risk-adjusted returns?

FESM currently has the higher Sharpe Ratio (2.53 vs 1.86), 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.