ACWI vs. FDTS

Last updated Jun 14, 2026

ACWI (iShares MSCI ACWI ETF) and FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) are both exchange-traded funds - ACWI is a Global Equities fund tracking the MSCI All Country World 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, ACWI returned 13.02%/yr vs 10.96%/yr for FDTS. A 0.51 correlation means they provide meaningful diversification when combined. ACWI charges 0.32%/yr vs 0.80%/yr for FDTS.

Performance

ACWI vs. FDTS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI ACWI ETF (ACWI) 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, ACWI achieves a 10.59% return, which is significantly lower than FDTS's 18.78% return. Over the past 10 years, ACWI has outperformed FDTS with an annualized return of 13.02%, while FDTS has yielded a comparatively lower 10.96% annualized return.

ACWI

• 1D: 0.41%
• 1M: 1.55%
• YTD: 10.59%
• 6M: 11.34%
• 1Y: 26.86%
• 3Y*: 19.78%
• 5Y*: 10.88%
• 10Y*: 13.02%

FDTS

• 1D: -0.17%
• 1M: -2.15%
• YTD: 18.78%
• 6M: 20.77%
• 1Y: 44.72%
• 3Y*: 24.70%
• 5Y*: 10.78%
• 10Y*: 10.96%

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

ACWI vs. FDTS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACWI iShares MSCI ACWI ETF	10.59%	22.41%	17.45%	22.27%	-18.39%	18.66%	16.34%	26.59%	-9.19%	24.33%
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	18.78%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	18.71%	-23.71%	36.01%

Correlation

The correlation between ACWI and FDTS is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Feb 16, 2012	0.51

Over the past year, ACWI and FDTS have become more correlated (0.80) than their long-term average of 0.51, meaning their price movements have been converging.

ACWI vs. FDTS - Sectors Allocation Comparison

Sectors	ACWI	FDTS
Technology	32.2%	14.1%
Financial Services	15.6%	11.9%
Industrials	10.2%	22.2%
Consumer Cyclical	8.7%	18.9%
Communication Services	8.2%	3.2%
Healthcare	8.1%	2.8%
Consumer Defensive	4.7%	4.7%
Energy	3.9%	4.0%
Basic Materials	3.6%	11.3%
Utilities	2.7%	2.7%
Real Estate	1.6%	4.3%

Return for Risk

ACWI vs. FDTS — Risk / Return Rank

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

ACWI

ACWI Risk / Return Rank: 67
ACWI Sharpe Ratio Rank: 67
ACWI Sortino Ratio Rank: 66
ACWI Omega Ratio Rank: 67
ACWI Calmar Ratio Rank: 61
ACWI Martin Ratio Rank: 71

FDTS

FDTS Risk / Return Rank: 79
FDTS Sharpe Ratio Rank: 84
FDTS Sortino Ratio Rank: 81
FDTS Omega Ratio Rank: 81
FDTS Calmar Ratio Rank: 76
FDTS Martin Ratio Rank: 72

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.

ACWI vs. FDTS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ETF (ACWI) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ACWI	FDTS	Difference
Sharpe ratio: Return per unit of total volatility	1.90	2.37	-0.47
Sortino ratio: Return per unit of downside risk	2.62	3.15	-0.53
Omega ratio: Gain probability vs. loss probability	1.35	1.42	-0.07
Calmar ratio: Return relative to maximum drawdown	2.62	3.43	-0.80
Martin ratio: Return relative to average drawdown	11.46	11.78	-0.32

ACWI vs. FDTS - Sharpe Ratio Comparison

The current ACWI Sharpe Ratio is 1.90, which is comparable to the FDTS Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of ACWI 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.

Drawdowns

ACWI vs. FDTS - Drawdown Comparison

The maximum ACWI drawdown since its inception was -56.00%, which is greater than FDTS's maximum drawdown of -51.26%. Use the drawdown chart below to compare losses from any high point for ACWI and FDTS.

Drawdown Indicators

	ACWI	FDTS	Difference
Max Drawdown Largest peak-to-trough decline	-56.00%	-51.26%	-4.74%
Max Drawdown (1Y) Largest decline over 1 year	-9.73%	-12.61%	+2.88%
Max Drawdown (3Y) Largest decline over 3 years	-16.55%	-13.19%	-3.36%
Max Drawdown (5Y) Largest decline over 5 years	-26.42%	-33.11%	+6.69%
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	-51.26%	+17.73%
Current Drawdown Current decline from peak	-2.19%	-4.77%	+2.58%
Average Drawdown Average peak-to-trough decline	-8.60%	-10.64%	+2.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	3.66%	-1.44%

Volatility

ACWI vs. FDTS - Volatility Comparison

The current volatility for iShares MSCI ACWI ETF (ACWI) is 5.17%, while First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) has a volatility of 8.44%. This indicates that ACWI experiences smaller price fluctuations and is considered to be less risky than FDTS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACWI	FDTS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	8.44%	-3.27%
Volatility (6M) Calculated over the trailing 6-month period	11.09%	15.54%	-4.45%
Volatility (1Y) Calculated over the trailing 1-year period	13.42%	18.27%	-4.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.15%	29.42%	-13.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.14%	24.92%	-7.78%

ACWI vs. FDTS - Expense Ratio Comparison

ACWI has a 0.32% expense ratio, which is lower than FDTS's 0.80% expense ratio.

Dividends

ACWI vs. FDTS - Dividend Comparison

ACWI's dividend yield for the trailing twelve months is around 1.40%, less than FDTS's 2.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWI iShares MSCI ACWI ETF	1.40%	1.55%	1.70%	1.88%	1.79%	1.71%	1.43%	2.33%	2.18%	1.94%	2.19%	2.56%
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	2.53%	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 ACWI and FDTS in my portfolio?

ACWI and FDTS have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ACWI or FDTS?

FDTS has higher volatility (8.44%) compared to ACWI (5.17%). In terms of maximum drawdown, ACWI dropped -56.00% vs FDTS's -51.26%.

Which ETF is better, ACWI or FDTS?

On 10-year performance, ACWI leads with 13.02% vs 10.96% for FDTS. On fees, ACWI is cheaper at 0.32% per year. On volatility, ACWI has been the lower-risk option at 5.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWI or FDTS?

Over the 10-year period, ACWI has performed better with a 13.02% return vs 10.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWI or FDTS?

ACWI is cheaper with a 0.32% expense ratio, compared with 0.80% for FDTS.

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

FDTS has the higher dividend yield at 2.53%, compared with 1.40% for ACWI.

What is the main difference between ACWI and FDTS?

ACWI is categorized as Global Equities, while FDTS is Foreign Small & Mid Cap Equities. ACWI tracks MSCI All Country World 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: 0.32% for ACWI and 0.80% for FDTS.

Which has better risk-adjusted returns?

FDTS currently has the higher Sharpe Ratio (2.37 vs 1.90), 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.