FESM vs FLQS
Fidelity Enhanced Small Cap Core ETF vs Franklin US Small Cap Multifactor Index ETF
Which is better, FESM or FLQS?
FESM has been ahead.
FESM has a lower expense ratio. FESM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.92. FESM is less concentrated, with 7.1% of the fund in its ten largest positions against 9.7%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FESM | FLQS |
|---|---|---|
| Expense Ratio | 0.28%Best | 0.35% |
| AUM | $6.4B | $50M |
| Dividend Yield | 0.87% | 1.57% |
| Holdings | 875 | 497 |
| YTD Return | +17.52%Best | +9.82% |
| 1Y Return | +21.75%Best | +9.87% |
| 3Y Return (annualized) | +22.94%Best | +12.65% |
| 5Y Return (annualized) | - | +5.25% |
| Volatility (annualized) | 19.7% | 17.1%Best |
| Max Drawdown | -26.9% | -23.1%Best |
| $10,000 over 2.9 years | $18,202Best | $13,787 |
| Top 10 Weight | 7.1%Best | 9.7% |
| Fund Family | Fidelity Investments (US) | Franklin Templeton Investments (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Small Cap Blend |
| Inception | Nov 20, 2023 | Apr 26, 2017 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Nov 20, 2023 to Oct 14, 2026 (2.9 years).
FESM vs FLQS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.9 years both funds cover.
FESM vs FLQS Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is an ETF from Fidelity Investments (US) and Franklin US Small Cap Multifactor Index ETF (FLQS) is an ETF from Franklin Templeton Investments (US). Over the past year FESM returned +21.75% while FLQS returned +9.87%. Year to date, FESM is up 17.52% versus a gain of 9.82% for FLQS.
Over three years, FESM compounded at +22.94% per year against +12.65% for FLQS.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.7% compared with 17.1% for FLQS. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -26.9% for FESM and -23.1% for FLQS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FESM charges 0.28% per year while FLQS charges 0.35%. On a $10,000 position that is $28 vs $35 annually, a gap of $7 per year that compounds over a long holding period. On income, FESM currently yields 0.87% against 1.57% for FLQS.
Holdings Overlap
29.5% of FESM's money is in holdings FLQS also owns. 57.8% of FLQS's money is in holdings FESM also owns.
The two portfolios partly overlap.
220 positions in common, counted across the 883 positions we hold weights for in FESM and 491 in FLQS, against full books of 875 and 497.
What only one of them owns
Our book lists 256 positions for FLQS that do not appear in our book for FESM (39.0% of the fund), and 532 for FESM that do not appear in FLQS (68.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FESM | Weight in FLQS | Difference |
|---|---|---|---|
| ANFAbercrombie & Fitch Co. Class A | 0.46% | 1.00% | 0.54% |
| CVLTCommvaultsystems Inc. | 0.51% | 0.95% | 0.44% |
| GKOSGlaukos Corp. | 0.70% | 0.59% | 0.11% |
| SXTSensient Technologies Corp | 0.52% | 0.75% | 0.23% |
| HOMBHome Bancshares Inc/ar | 0.53% | 0.74% | 0.21% |
| ACIWAci Worldwide Inc | 0.56% | 0.67% | 0.11% |
| ALKS:IEAlkermes Plc. Ordinary Shares | 0.27% | 0.94% | 0.67% |
| IBPInstalled Building Products | 0.64% | 0.56% | 0.08% |
| PTGXProtagonist Therapeutics Inc | 0.23% | 0.97% | 0.74% |
| KGSKodiak Gas Services Inccommon Stock | 0.61% | 0.55% | 0.06% |
57.8% of FLQS is already inside FESM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, FESM or FLQS?
FESM has an expense ratio of 0.28% while FLQS charges 0.35%. FESM is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, FESM or FLQS?
Over the past year FESM returned +21.75% vs +9.87% for FLQS, so FESM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FESM or FLQS?
FESM has been the more volatile fund at 19.7% annualized versus 17.1% for FLQS. Worst drawdown: FESM -26.9% vs FLQS -23.1%.
Should I hold both FESM and FLQS?
FESM and FLQS have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between FESM and FLQS?
57.8% of FLQS's money is in holdings FESM also owns. 57.8% of FLQS's is in holdings FESM also owns. They hold 220 positions in common, counted across the 883 positions we hold weights for in FESM and 491 in FLQS.
Which pays a higher dividend, FESM or FLQS?
FESM yields 0.87% while FLQS yields 1.57%, so FLQS currently pays the higher dividend yield.
Is FLQS better than FESM?
FESM has a lower expense ratio. FESM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.92. FESM is less concentrated, with 7.1% of the fund in its ten largest positions against 9.7%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.