CARZ vs. FDL

Last updated Jul 14, 2026

CARZ (First Trust NASDAQ Global Auto Index Fund) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - CARZ is a Consumer Discretionary Equities fund tracking the NASDAQ OMX Global Automobile (TR), while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, CARZ returned 14.96%/yr vs 10.76%/yr for FDL. At a 0.47 correlation, their price movements are largely independent. CARZ charges 0.70%/yr vs 0.43%/yr for FDL.

Performance

CARZ vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Global Auto Index Fund (CARZ) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CARZ achieves a 37.83% return, which is significantly higher than FDL's 15.23% return. Over the past 10 years, CARZ has outperformed FDL with an annualized return of 14.96%, while FDL has yielded a comparatively lower 10.76% annualized return.

CARZ

• 1D: -3.25%
• 1M: -7.39%
• 6M: 28.29%
• YTD: 37.83%
• 1Y: 72.79%
• 3Y*: 24.42%
• 5Y*: 14.20%
• 10Y*: 14.96%

FDL

• 1D: 0.80%
• 1M: -0.89%
• 6M: 12.56%
• YTD: 15.23%
• 1Y: 20.80%
• 3Y*: 18.71%
• 5Y*: 13.58%
• 10Y*: 10.76%

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

CARZ vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CARZ First Trust NASDAQ Global Auto Index Fund	37.83%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-23.91%	25.47%
FDL First Trust Morningstar Dividend Leaders Index Fund	15.23%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between CARZ and FDL is -0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.05
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since May 10, 2011	0.47

The correlation between CARZ and FDL shifts across timeframes, from -0.05 (1 year) to 0.47 (all time), reflecting how their relationship changes across market environments.

CARZ vs. FDL - Sectors Allocation Comparison

Sectors	CARZ	FDL
Technology	34.3%	1.4%
Consumer Cyclical	21.9%	4.7%
Industrials	8.6%	3.9%
Basic Materials	6.7%	0.3%
Communication Services	1.9%	10.6%
Consumer Defensive	-	14.4%
Energy	-	25.7%
Financial Services	-	15.2%
Healthcare	-	17.6%
Real Estate	-	-
Utilities	-	6.5%

Return for Risk

CARZ vs. FDL — Risk / Return Rank

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

CARZ

CARZ Risk / Return Rank: 88
CARZ Sharpe Ratio Rank: 90
CARZ Sortino Ratio Rank: 81
CARZ Omega Ratio Rank: 84
CARZ Calmar Ratio Rank: 93
CARZ Martin Ratio Rank: 91

FDL

FDL Risk / Return Rank: 76
FDL Sharpe Ratio Rank: 70
FDL Sortino Ratio Rank: 77
FDL Omega Ratio Rank: 65
FDL Calmar Ratio Rank: 92
FDL Martin Ratio Rank: 75

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.

CARZ vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Global Auto Index Fund (CARZ) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	CARZ	FDL	Difference
Sharpe ratio: Return per unit of total volatility	2.40	1.80	+0.60
Sortino ratio: Return per unit of downside risk	2.87	2.72	+0.15
Omega ratio: Gain probability vs. loss probability	1.40	1.31	+0.09
Calmar ratio: Return relative to maximum drawdown	5.07	4.89	+0.18
Martin ratio: Return relative to average drawdown	16.53	11.11	+5.42

CARZ vs. FDL - Sharpe Ratio Comparison

The current CARZ Sharpe Ratio is 2.40, which is higher than the FDL Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of CARZ and FDL, 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

CARZ vs. FDL - Drawdown Comparison

The maximum CARZ drawdown since its inception was -51.20%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for CARZ and FDL.

Drawdown Indicators

	CARZ	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-51.20%	-65.93%	+14.73%
Max Drawdown (1Y) Largest decline over 1 year	-14.44%	-4.27%	-10.17%
Max Drawdown (3Y) Largest decline over 3 years	-27.84%	-12.24%	-15.60%
Max Drawdown (5Y) Largest decline over 5 years	-40.30%	-16.46%	-23.84%
Max Drawdown (10Y) Largest decline over 10 years	-51.20%	-41.40%	-9.80%
Current Drawdown Current decline from peak	-12.82%	-0.89%	-11.93%
Average Drawdown Average peak-to-trough decline	-12.86%	-9.62%	-3.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.42%	1.88%	+2.54%

Volatility

CARZ vs. FDL - Volatility Comparison

First Trust NASDAQ Global Auto Index Fund (CARZ) has a higher volatility of 15.06% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 4.65%. This indicates that CARZ's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CARZ	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.06%	4.65%	+10.41%
Volatility (6M) Calculated over the trailing 6-month period	26.56%	8.37%	+18.19%
Volatility (1Y) Calculated over the trailing 1-year period	30.58%	11.65%	+18.93%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.09%	14.37%	+14.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.63%	17.12%	+9.51%

CARZ vs. FDL - Expense Ratio Comparison

CARZ has a 0.70% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

CARZ vs. FDL - Dividend Comparison

CARZ's dividend yield for the trailing twelve months is around 1.27%, less than FDL's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CARZ First Trust NASDAQ Global Auto Index Fund	1.27%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%
FDL First Trust Morningstar Dividend Leaders Index Fund	3.68%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%

Frequently Asked Questions

Can I hold both CARZ and FDL in my portfolio?

CARZ and FDL have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CARZ or FDL?

CARZ has higher volatility (15.06%) compared to FDL (4.65%). In terms of maximum drawdown, CARZ dropped -51.20% vs FDL's -65.93%.

Which ETF is better, CARZ or FDL?

On 10-year performance, CARZ leads with 14.96% vs 10.76% for FDL. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 4.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CARZ or FDL?

Over the 10-year period, CARZ has performed better with a 14.96% return vs 10.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CARZ or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.70% for CARZ.

Which ETF pays a higher dividend yield, CARZ or FDL?

FDL has the higher dividend yield at 3.68%, compared with 1.27% for CARZ.

What is the main difference between CARZ and FDL?

CARZ is categorized as Consumer Discretionary Equities, while FDL is Large Cap Value Equities. CARZ tracks NASDAQ OMX Global Automobile (TR), while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.70% for CARZ and 0.43% for FDL.

Which has better risk-adjusted returns?

CARZ currently has the higher Sharpe Ratio (2.40 vs 1.80), 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.