CARZ vs. KNG

Last updated Jun 5, 2026

CARZ (First Trust NASDAQ Global Auto Index Fund) and KNG (FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF) are both exchange-traded funds - CARZ is a Consumer Discretionary Equities fund tracking the NASDAQ OMX Global Automobile (TR), while KNG is a Dividend fund tracking the Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series. Both are passively managed. Over the past 5 years, CARZ returned 15.95%/yr vs 4.50%/yr for KNG. A 0.52 correlation means they provide meaningful diversification when combined. CARZ charges 0.70%/yr vs 0.75%/yr for KNG.

Performance

CARZ vs. KNG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust NASDAQ Global Auto Index Fund (CARZ) and FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CARZ achieves a 55.03% return, which is significantly higher than KNG's 3.13% return.

CARZ

• 1D: -1.58%
• 1M: 13.96%
• YTD: 55.03%
• 6M: 57.92%
• 1Y: 110.10%
• 3Y*: 33.87%
• 5Y*: 15.95%
• 10Y*: 16.21%

KNG

• 1D: 0.91%
• 1M: 0.83%
• YTD: 3.13%
• 6M: 3.55%
• 1Y: 8.66%
• 3Y*: 7.53%
• 5Y*: 4.50%
• 10Y*: —

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

CARZ vs. KNG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
CARZ First Trust NASDAQ Global Auto Index Fund	55.03%	37.18%	3.26%	42.47%	-31.25%	18.09%	54.66%	11.39%	-20.17%
KNG FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF	3.13%	6.63%	5.99%	7.48%	-7.03%	24.78%	7.21%	26.64%	-0.84%

Correlation

The correlation between CARZ and KNG is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.48
Correlation (All Time) Calculated using the full available price history since Mar 28, 2018	0.52

Over the past year, the correlation between CARZ and KNG has dropped to 0.30 - well below their long-term average of 0.52, suggesting their price drivers have been diverging.

CARZ vs. KNG - Sectors Allocation Comparison

Sectors	CARZ	KNG
Technology	60.6%	4.3%
Consumer Cyclical	19.5%	5.5%
Industrials	8.1%	20.3%
Basic Materials	6.6%	10.2%
Communication Services	5.1%	-
Consumer Defensive	-	23.5%
Energy	-	3.0%
Financial Services	-	12.7%
Healthcare	-	10.1%
Real Estate	-	4.4%
Utilities	-	6.1%

Return for Risk

CARZ vs. KNG — Risk / Return Rank

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

CARZ

CARZ Risk / Return Rank: 95
CARZ Sharpe Ratio Rank: 96
CARZ Sortino Ratio Rank: 95
CARZ Omega Ratio Rank: 94
CARZ Calmar Ratio Rank: 95
CARZ Martin Ratio Rank: 95

KNG

KNG Risk / Return Rank: 24
KNG Sharpe Ratio Rank: 25
KNG Sortino Ratio Rank: 25
KNG Omega Ratio Rank: 23
KNG Calmar Ratio Rank: 23
KNG Martin Ratio Rank: 22

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. KNG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust NASDAQ Global Auto Index Fund (CARZ) and FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG). 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.

	CARZ	KNG	Difference
Sharpe ratio: Return per unit of total volatility	4.28	0.85	+3.43
Sortino ratio: Return per unit of downside risk	4.98	1.32	+3.67
Omega ratio: Gain probability vs. loss probability	1.66	1.15	+0.52
Calmar ratio: Return relative to maximum drawdown	7.67	1.01	+6.66
Martin ratio: Return relative to average drawdown	30.97	2.61	+28.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CARZ vs. KNG - Sharpe Ratio Comparison

The current CARZ Sharpe Ratio is 4.28, which is higher than the KNG Sharpe Ratio of 0.85. The chart below compares the historical Sharpe Ratios of CARZ and KNG, 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

	CARZ	KNG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.28	0.85	+3.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.57	0.33	+0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.62	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.50	-0.05

Drawdowns

CARZ vs. KNG - Drawdown Comparison

The maximum CARZ drawdown since its inception was -51.20%, which is greater than KNG's maximum drawdown of -35.12%. Use the drawdown chart below to compare losses from any high point for CARZ and KNG.

Drawdown Indicators

	CARZ	KNG	Difference
Max Drawdown Largest peak-to-trough decline	-51.20%	-35.12%	-16.08%
Max Drawdown (1Y) Largest decline over 1 year	-14.44%	-8.61%	-5.83%
Max Drawdown (3Y) Largest decline over 3 years	-27.84%	-14.24%	-13.60%
Max Drawdown (5Y) Largest decline over 5 years	-40.30%	-18.20%	-22.10%
Max Drawdown (10Y) Largest decline over 10 years	-51.20%	—	—
Current Drawdown Current decline from peak	-1.94%	-5.03%	+3.09%
Average Drawdown Average peak-to-trough decline	-12.89%	-4.13%	-8.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.57%	3.33%	+0.24%

Volatility

CARZ vs. KNG - Volatility Comparison

First Trust NASDAQ Global Auto Index Fund (CARZ) has a higher volatility of 10.20% compared to FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) at 2.26%. This indicates that CARZ's price experiences larger fluctuations and is considered to be riskier than KNG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CARZ	KNG	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.20%	2.26%	+7.94%
Volatility (6M) Calculated over the trailing 6-month period	20.40%	7.44%	+12.96%
Volatility (1Y) Calculated over the trailing 1-year period	25.86%	10.22%	+15.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.11%	13.60%	+14.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.27%	17.18%	+9.09%

CARZ vs. KNG - Expense Ratio Comparison

CARZ has a 0.70% expense ratio, which is lower than KNG's 0.75% expense ratio.

Dividends

CARZ vs. KNG - Dividend Comparison

CARZ's dividend yield for the trailing twelve months is around 1.38%, less than KNG's 8.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CARZ First Trust NASDAQ Global Auto Index Fund	1.38%	2.13%	1.17%	1.40%	1.59%	2.25%	0.63%	3.23%	2.85%	2.11%	2.47%	1.64%
KNG FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF	8.59%	8.61%	9.08%	5.91%	4.00%	3.45%	3.62%	4.09%	3.46%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CARZ and KNG in my portfolio?

CARZ and KNG have a correlation of 0.30, 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 KNG?

CARZ has higher volatility (10.20%) compared to KNG (2.26%). In terms of maximum drawdown, CARZ dropped -51.20% vs KNG's -35.12%.

Which ETF is better, CARZ or KNG?

On 5-year performance, CARZ leads with 15.95% vs 4.50% for KNG. On fees, CARZ is cheaper at 0.70% per year. On volatility, KNG has been the lower-risk option at 2.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CARZ or KNG?

Over the 5-year period, CARZ has performed better with a 15.95% return vs 4.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CARZ or KNG?

CARZ is cheaper with a 0.70% expense ratio, compared with 0.75% for KNG.

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

KNG has the higher dividend yield at 8.59%, compared with 1.38% for CARZ.

What is the main difference between CARZ and KNG?

CARZ is categorized as Consumer Discretionary Equities, while KNG is Dividend. CARZ tracks NASDAQ OMX Global Automobile (TR), while KNG tracks Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series. Their fees differ too: 0.70% for CARZ and 0.75% for KNG.

Which has better risk-adjusted returns?

CARZ currently has the higher Sharpe Ratio (4.28 vs 0.85), 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.