FESM vs IWM
Fidelity Enhanced Small Cap Core ETF vs iShares Russell 2000 ETF
Which is better, FESM or IWM?
Nearly the same fund. IWM costs less.
IWM has a lower expense ratio. FESM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.99. IWM is less concentrated, with 3.5% of the fund in its ten largest positions against 7.1%.
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 | IWM |
|---|---|---|
| Expense Ratio | 0.28% | 0.19%Best |
| AUM | $6.4B | $76.0B |
| Dividend Yield | 0.87% | 0.98% |
| Holdings | 875 | 1,972 |
| YTD Return | +17.52%Best | +9.82% |
| 1Y Return | +21.75%Best | +10.58% |
| 3Y Return (annualized) | +22.94%Best | +17.51% |
| 5Y Return (annualized) | - | +5.03% |
| Volatility (annualized) | 19.7% | 18.8%Best |
| Max Drawdown | -26.9%Best | -27.5% |
| $10,000 over 2.9 years | $18,202Best | $15,646 |
| Top 10 Weight | 7.1% | 3.5%Best |
| Fund Family | Fidelity Investments (US) | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Small Cap Blend |
| Inception | Nov 20, 2023 | May 22, 2000 |
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 IWM 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 IWM Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is an ETF from Fidelity Investments (US) and iShares Russell 2000 ETF (IWM) is an ETF from iShares by BlackRock (US). Over the past year FESM returned +21.75% while IWM returned +10.58%. Year to date, FESM is up 17.52% versus a gain of 9.82% for IWM.
Over three years, FESM compounded at +22.94% per year against +17.51% for IWM.
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 18.8% for IWM. 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 -27.5% for IWM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.99. 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 IWM charges 0.19%. On a $10,000 position that is $28 vs $19 annually, a gap of $9 per year that compounds over a long holding period. On income, FESM currently yields 0.87% against 0.98% for IWM.
Holdings Overlap
93.3% of FESM's money is in holdings IWM also owns. 58.4% of IWM's money is in holdings FESM also owns.
Most of FESM is already inside IWM. Owning both mostly buys the same companies twice.
817 positions in common, counted across the 883 positions we hold weights for in FESM and 1,973 in IWM, against full books of 875 and 1,972.
What only one of them owns
Our book lists 924 positions for IWM that do not appear in our book for FESM (39.5% of the fund), and 40 for FESM that do not appear in IWM (5.3%).
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 IWM | Difference |
|---|---|---|---|
| GKOSGlaukos Corp. | 0.70% | 0.32% | 0.38% |
| PLXSPlexus Corp | 0.77% | 0.24% | 0.53% |
| OSCROscar Health, Inc. | 0.74% | 0.24% | 0.50% |
| CMCCommercial Metals Co | 0.74% | 0.24% | 0.50% |
| MXLMaxlinear Inc | 0.68% | 0.27% | 0.41% |
| ENSEnersys | 0.72% | 0.23% | 0.49% |
| KLICKulicke & Soffa Industries | 0.75% | 0.17% | 0.58% |
| TWSTTwist Bioscience Corp. | 0.50% | 0.42% | 0.08% |
| BTSGBrightspring Health | 0.57% | 0.32% | 0.25% |
| HQYHealthequity Inc | 0.62% | 0.25% | 0.37% |
93.3% of FESM is already inside IWM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FESM or IWM?
FESM has an expense ratio of 0.28% while IWM charges 0.19%. IWM is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, FESM or IWM?
Over the past year FESM returned +21.75% vs +10.58% for IWM, 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 IWM?
FESM has been the more volatile fund at 19.7% annualized versus 18.8% for IWM. Worst drawdown: FESM -26.9% vs IWM -27.5%.
Should I hold both FESM and IWM?
FESM and IWM have a monthly-return correlation of 0.99, 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 IWM?
93.3% of FESM's money is in holdings IWM also owns. 58.4% of IWM's is in holdings FESM also owns. They hold 817 positions in common, counted across the 883 positions we hold weights for in FESM and 1,973 in IWM.
Which pays a higher dividend, FESM or IWM?
FESM yields 0.87% while IWM yields 0.98%, so IWM currently pays the higher dividend yield.
Is IWM better than FESM?
IWM has a lower expense ratio. FESM led over 1Y, 3Y and the full window. The two have moved almost in lockstep, correlation 0.99. IWM is less concentrated, with 3.5% of the fund in its ten largest positions against 7.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.