AAXJ vs. FDTS

Last updated Jun 9, 2026

AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) are both exchange-traded funds - AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index, while FDTS is a Foreign Small & Mid Cap Equities fund tracking the NASDAQ AlphaDEX DM Ex-US Small Cap Index. Both are passively managed. Over the past 10 years, AAXJ returned 9.86%/yr vs 9.93%/yr for FDTS. At a 0.47 correlation, their price movements are largely independent. AAXJ charges 0.68%/yr vs 0.80%/yr for FDTS.

Performance

AAXJ vs. FDTS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAXJ achieves a 22.87% return, which is significantly higher than FDTS's 14.34% return. Both investments have delivered pretty close results over the past 10 years, with AAXJ having a 9.86% annualized return and FDTS not far ahead at 9.93%.

AAXJ

• 1D: 2.12%
• 1M: -2.62%
• YTD: 22.87%
• 6M: 24.43%
• 1Y: 45.43%
• 3Y*: 21.57%
• 5Y*: 5.97%
• 10Y*: 9.86%

FDTS

• 1D: 1.24%
• 1M: -8.33%
• YTD: 14.34%
• 6M: 16.46%
• 1Y: 40.77%
• 3Y*: 23.77%
• 5Y*: 10.11%
• 10Y*: 9.93%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAXJ vs. FDTS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAXJ iShares MSCI All Country Asia ex-Japan ETF	22.87%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-15.04%	41.76%
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	14.34%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	18.71%	-23.71%	36.01%

Correlation

The correlation between AAXJ and FDTS is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Feb 17, 2012	0.47

Over the past year, AAXJ and FDTS have become more correlated (0.74) than their long-term average of 0.47, meaning their price movements have been converging.

AAXJ vs. FDTS - Sectors Allocation Comparison

Sectors	AAXJ	FDTS
Technology	41.6%	13.4%
Financial Services	17.7%	11.7%
Consumer Cyclical	10.3%	18.4%
Industrials	8.3%	23.0%
Communication Services	6.9%	3.0%
Basic Materials	3.5%	11.2%
Healthcare	3.0%	3.0%
Energy	2.7%	4.3%
Consumer Defensive	2.4%	5.0%
Utilities	1.8%	2.7%
Real Estate	1.7%	4.3%

Return for Risk

AAXJ vs. FDTS — Risk / Return Rank

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

AAXJ

AAXJ Risk / Return Rank: 72
AAXJ Sharpe Ratio Rank: 72
AAXJ Sortino Ratio Rank: 65
AAXJ Omega Ratio Rank: 76
AAXJ Calmar Ratio Rank: 73
AAXJ Martin Ratio Rank: 74

FDTS

FDTS Risk / Return Rank: 74
FDTS Sharpe Ratio Rank: 80
FDTS Sortino Ratio Rank: 75
FDTS Omega Ratio Rank: 76
FDTS Calmar Ratio Rank: 71
FDTS Martin Ratio Rank: 69

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.

AAXJ vs. FDTS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS). 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.

	AAXJ	FDTS	Difference
Sharpe ratio: Return per unit of total volatility	2.11	2.32	-0.21
Sortino ratio: Return per unit of downside risk	2.70	3.01	-0.31
Omega ratio: Gain probability vs. loss probability	1.40	1.40	0.00
Calmar ratio: Return relative to maximum drawdown	3.34	3.25	+0.09
Martin ratio: Return relative to average drawdown	12.62	11.52	+1.09
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAXJ vs. FDTS - Sharpe Ratio Comparison

The current AAXJ Sharpe Ratio is 2.11, which is comparable to the FDTS Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of AAXJ and FDTS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AAXJ	FDTS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.11	2.32	-0.21
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	0.35	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.40	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.36	-0.10

Drawdowns

AAXJ vs. FDTS - Drawdown Comparison

The maximum AAXJ drawdown since its inception was -49.37%, roughly equal to the maximum FDTS drawdown of -51.26%. Use the drawdown chart below to compare losses from any high point for AAXJ and FDTS.

Drawdown Indicators

	AAXJ	FDTS	Difference
Max Drawdown Largest peak-to-trough decline	-49.37%	-51.26%	+1.89%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-12.61%	-1.05%
Max Drawdown (3Y) Largest decline over 3 years	-19.74%	-13.19%	-6.55%
Max Drawdown (5Y) Largest decline over 5 years	-40.64%	-33.11%	-7.53%
Max Drawdown (10Y) Largest decline over 10 years	-44.52%	-51.26%	+6.74%
Current Drawdown Current decline from peak	-7.32%	-8.33%	+1.01%
Average Drawdown Average peak-to-trough decline	-14.02%	-10.65%	-3.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.61%	3.55%	+0.06%

Volatility

AAXJ vs. FDTS - Volatility Comparison

iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a higher volatility of 11.44% compared to First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) at 7.49%. This indicates that AAXJ's price experiences larger fluctuations and is considered to be riskier than FDTS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAXJ	FDTS	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.44%	7.49%	+3.95%
Volatility (6M) Calculated over the trailing 6-month period	19.19%	14.83%	+4.36%
Volatility (1Y) Calculated over the trailing 1-year period	21.66%	17.67%	+3.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.22%	29.35%	-9.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.38%	24.88%	-4.50%

AAXJ vs. FDTS - Expense Ratio Comparison

AAXJ has a 0.68% expense ratio, which is lower than FDTS's 0.80% expense ratio.

Dividends

AAXJ vs. FDTS - Dividend Comparison

AAXJ's dividend yield for the trailing twelve months is around 1.47%, less than FDTS's 2.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.47%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	2.63%	2.94%	3.94%	2.90%	3.71%	3.01%	2.02%	2.30%	1.96%	2.08%	1.78%	1.73%

Frequently Asked Questions

Can I hold both AAXJ and FDTS in my portfolio?

AAXJ and FDTS have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAXJ or FDTS?

AAXJ has higher volatility (11.44%) compared to FDTS (7.49%). In terms of maximum drawdown, AAXJ dropped -49.37% vs FDTS's -51.26%.

Which ETF is better, AAXJ or FDTS?

On 10-year performance, FDTS leads with 9.93% vs 9.86% for AAXJ. On fees, AAXJ is cheaper at 0.68% per year. On volatility, FDTS has been the lower-risk option at 7.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAXJ or FDTS?

Over the 10-year period, FDTS has performed better with a 9.93% return vs 9.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAXJ or FDTS?

AAXJ is cheaper with a 0.68% expense ratio, compared with 0.80% for FDTS.

Which ETF pays a higher dividend yield, AAXJ or FDTS?

FDTS has the higher dividend yield at 2.63%, compared with 1.47% for AAXJ.

What is the main difference between AAXJ and FDTS?

AAXJ is categorized as Asia Pacific Equities, while FDTS is Foreign Small & Mid Cap Equities. AAXJ tracks MSCI All Country Asia ex Japan Index, while FDTS tracks NASDAQ AlphaDEX DM Ex-US Small Cap Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.68% for AAXJ and 0.80% for FDTS.

Which has better risk-adjusted returns?

FDTS currently has the higher Sharpe Ratio (2.32 vs 2.11), 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.