Data as of Oct 28, 2026.
FESM vs VB: Differences, Returns & Fees
Over the year to Oct 28, 2026, FESM returned +23.0% to VB's +14.4%; 15% of their weight is in the same names.
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Net assets on Sep 30, 2026: $6.4bn for Fidelity Enhanced Small Cap Core ETF and $76.9bn for Vanguard Morningstar Small-Cap ETF.
Pair scorecard
VB costs 0.25 points a year less; their one-year returns differ by 8.6 points; VB is 12.0 times larger.
| Measure | FESM | VB |
|---|---|---|
| Return | ||
| Total return, 1 year | +23.0% | +14.4% |
| Drawdown | ||
| Below its high | 5.9%, high on Aug 14, 2026 | 5.7%, high on Aug 14, 2026 |
| Benchmark | ||
| What it tracks | No index, actively managed | Morningstar US Small Cap Index |
| Cost and size | ||
| Expense ratio | 0.28% | 0.03% |
| Net assets, as of Sep 30, 2026 | $6.4bn | $76.9bn |
| Holdings | ||
| Holdings in common | 15% | |
| Top ten holdings, share of the fund | 8.0% | 5.9% |
Holdings in common uses holdings dated Jun 30, 2026 and Sep 30, 2026. Method
Risk and return
Dec 1, 2023 to Oct 23, 2026 · 151 weekly returnsFESM returned more: +80.6% to +50.0%. VB swung less: 16.6% to 19.4%. VB fell slightly less at its worst: −22.3% to −24.5%.
Full scorecard
9 measures, with how each is measured Open ↓
| Measure | FESM | VB | Edge | How it is measured |
|---|---|---|---|---|
| Return | ||||
| Total return | +80.6% | +50.0% | FESM | Price change plus distributions, reinvested. |
| Annualized | +22.6% | +15.0% | FESM | Total return as a yearly rate. |
| Price return | +75.5% | +43.8% | FESM | Price change alone, distributions left out. |
| Risk | ||||
| Volatility | 19.4% | 16.6% | VB | Spread of weekly returns, annualized. Lower is steadier. |
| Downside deviation | 12.7% | 11.2% | VB | Like volatility, counting only weeks below the Treasury bill rate. |
| Max drawdown | −24.5% | −22.3% | VB (slight) | Deepest fall from a high to the low after it. |
| Risk-adjusted | ||||
| Sharpe | 0.92 | 0.66 | FESM | Return above Treasury bills per unit of volatility. |
| Sortino | 1.41 | 0.97 | FESM | Return above Treasury bills per unit of downside deviation. |
| Calmar | 0.92 | 0.67 | FESM | Annualized return divided by the max drawdown. |
Computed by ETFIQ from Tiingo daily prices and ETFIQ's distribution records, 151 weekly returns. Cash rate: the 13-week Treasury bill.
What they share
By the books each fund has filed, FESM and VB hold 15% of their money in the same securities at the same weight. Holdings dated Jun 30, 2026 and Sep 30, 2026.
half
15% in common
Only in one fund ↓
Side by side
FESM and VB on the fields both publish, as of Oct 28, 2026. Source: ETFIQ.
FESM and VB are built for the same job. How do they differ in cost, holdings and results?
- What each follows. FESM follows No index, actively managed and VB follows Morningstar US Small Cap Index.
- Holdings in common. 15% of the weight is in the same securities (holdings dated Jun 30, 2026 and Sep 30, 2026).
- One-year total return. Over 1 year to Oct 28, 2026 FESM returned +23.0% and VB +14.4% with distributions reinvested, a gap of 8.6 points.
Data as of Oct 28, 2026.
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FESM
FESM is actively managed and tracks no index. Over the year to Oct 28, 2026 it returned +23.0% with distributions reinvested. The prospectus expense ratio is 0.28% a year. By its holdings filed for Jun 30, 2026, 1% of the fund by weight is stocks the S&P 500 also holds, across 779 positions, with the top ten at 8.0%. It sat 5.9% below its high of Aug 14, 2026 on Oct 28, 2026.
VB
VB tracks an index of Small-Cap. Over the year to Oct 28, 2026 it returned +14.4% with distributions reinvested. The prospectus expense ratio is 0.03% a year. By its holdings published by its issuer as of Sep 30, 2026, 22% of the fund by weight is stocks the S&P 500 also holds, across 1,303 positions, with the top ten at 5.9%. It sat 5.7% below its high of Aug 14, 2026 on Oct 28, 2026.
Questions people ask
- Which returned more over the last year, FESM or VB?
- In the year to Oct 28, 2026, with distributions reinvested, FESM returned +23.0% and VB +14.4%.
- Which is cheaper, FESM or VB?
- VB is cheaper, by 0.25 percentage points a year. That is about $25 on $10,000 held for a year. Fees come from each fund's prospectus.
Links are sources, not endorsements. A comparison is not a recommendation.
How this is computed
Overlap adds up the smaller of the two weights for each security both funds hold.
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ETFIQ, FESM against VB, data as of Oct 28, 2026. https://etfiq.com/compare/any/fesm-vs-vb
ETFIQ. (Oct 28, 2026). FESM against VB. Retrieved from https://etfiq.com/compare/any/fesm-vs-vb
[FESM against VB (ETFIQ, Oct 28, 2026)](https://etfiq.com/compare/any/fesm-vs-vb)
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