FESM vs IVV
Fidelity Enhanced Small Cap Core ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. FESM delivered stronger 1-year returns. FESM offers more diversification with 583 holdings.
Side-by-Side Comparison
| Metric | FESM | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.03% | |
| AUM | $5.8B | $865.2B | |
| Dividend Yield | 0.71% | 1.09% | |
| Holdings | 625 | 508 | |
| YTD Return | +27.18% | +13.43% | |
| 1Y Return | +46.51% | +22.61% | |
| 3Y Return (annualized) | - | +21.47% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 19.8% | 15.1% | |
| Max Drawdown | -26.9% | -56.5% | |
| Fund Family | Fidelity Investments (US) | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Nov 20, 2023 | May 15, 2000 |
FESM vs IVV Performance
Fidelity Enhanced Small Cap Core ETF (FESM) is a ETF from Fidelity Investments (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FESM returned +46.51% while IVV returned +22.61%. Year to date, FESM is up 27.18% versus a gain of 13.43% for IVV.
Risk: Volatility and Drawdowns
FESM has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 15.1% for IVV. 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 -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FESM charges 0.28% per year while IVV charges 0.03%. On a $10,000 position that is $28 vs $3 annually, a gap of $25 per year that compounds over a long holding period. On income, FESM currently yields 0.71% against 1.09% for IVV.
Holdings Overlap
FESM and IVV share 6 holdings out of 1082 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FESM or IVV?
FESM has an expense ratio of 0.28% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FESM or IVV?
Over the past year FESM returned +46.51% vs +22.61% for IVV, so FESM leads on 1-year performance. Over the longest common window we track (3 years), FESM annualized +28.25% vs +7.03% for IVV. Past performance does not guarantee future results.
Which is riskier, FESM or IVV?
FESM has been the more volatile fund at 19.8% annualized versus 15.1% for IVV. Worst drawdown: FESM -26.9% vs IVV -56.5%.
Should I hold both FESM and IVV?
FESM and IVV have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FESM and IVV?
FESM and IVV share 6 common holdings with a 0.3% weight overlap. Combined, they hold 1082 unique securities.
Which pays a higher dividend, FESM or IVV?
FESM yields 0.71% while IVV yields 1.09%, so IVV currently pays the higher dividend yield.
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