FAD vs. BOUT

Last updated Jun 4, 2026

FAD (First Trust Multi Cap Growth AlphaDEX Fund) and BOUT (Innovator IBD Breakout Opportunities ETF) are both Mid Cap Growth Equities funds - FAD tracks the NASDAQ AlphaDEX Multi Cap Growth Index while BOUT tracks the IBD Breakout Stocks Total Return Index. Both are passively managed. Over the past 5 years, FAD returned 11.25%/yr vs 8.25%/yr for BOUT. Their correlation of 0.82 suggests significant overlap in exposure. FAD charges 0.63%/yr vs 0.80%/yr for BOUT.

Performance

FAD vs. BOUT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Multi Cap Growth AlphaDEX Fund (FAD) and Innovator IBD Breakout Opportunities ETF (BOUT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAD achieves a 17.25% return, which is significantly lower than BOUT's 31.39% return.

FAD

• 1D: -0.15%
• 1M: 6.70%
• YTD: 17.25%
• 6M: 17.16%
• 1Y: 34.52%
• 3Y*: 24.16%
• 5Y*: 11.25%
• 10Y*: 14.53%

BOUT

• 1D: -0.01%
• 1M: 5.85%
• YTD: 31.39%
• 6M: 30.30%
• 1Y: 35.27%
• 3Y*: 17.42%
• 5Y*: 8.25%
• 10Y*: —

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

FAD vs. BOUT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FAD First Trust Multi Cap Growth AlphaDEX Fund	17.25%	17.23%	23.85%	19.07%	-24.06%	21.17%	34.92%	26.66%	-20.48%
BOUT Innovator IBD Breakout Opportunities ETF	31.39%	-6.77%	18.82%	13.27%	-22.60%	22.69%	50.56%	20.59%	-29.80%

Correlation

The correlation between FAD and BOUT is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (All Time) Calculated using the full available price history since Sep 14, 2018	0.82

The correlation between FAD and BOUT has been stable across timeframes, ranging from 0.82 to 0.86 - a consistent structural relationship.

FAD vs. BOUT - Sectors Allocation Comparison

Sectors	FAD	BOUT
Industrials	26.1%	9.7%
Technology	24.1%	28.4%
Healthcare	15.4%	2.6%
Consumer Cyclical	10.8%	8.5%
Financial Services	8.0%	22.9%
Real Estate	4.1%	3.5%
Communication Services	3.1%	2.0%
Basic Materials	3.0%	9.9%
Consumer Defensive	2.4%	9.7%
Energy	1.6%	3.1%
Utilities	1.6%	7.0%

Return for Risk

FAD vs. BOUT — Risk / Return Rank

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

FAD

FAD Risk / Return Rank: 59
FAD Sharpe Ratio Rank: 55
FAD Sortino Ratio Rank: 53
FAD Omega Ratio Rank: 51
FAD Calmar Ratio Rank: 66
FAD Martin Ratio Rank: 68

BOUT

BOUT Risk / Return Rank: 51
BOUT Sharpe Ratio Rank: 49
BOUT Sortino Ratio Rank: 47
BOUT Omega Ratio Rank: 46
BOUT Calmar Ratio Rank: 61
BOUT Martin Ratio Rank: 53

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.

FAD vs. BOUT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Multi Cap Growth AlphaDEX Fund (FAD) and Innovator IBD Breakout Opportunities ETF (BOUT). 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.

	FAD	BOUT	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.71	+0.17
Sortino ratio: Return per unit of downside risk	2.59	2.33	+0.26
Omega ratio: Gain probability vs. loss probability	1.32	1.30	+0.03
Calmar ratio: Return relative to maximum drawdown	3.25	3.01	+0.24
Martin ratio: Return relative to average drawdown	12.54	9.00	+3.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FAD vs. BOUT - Sharpe Ratio Comparison

The current FAD Sharpe Ratio is 1.88, which is comparable to the BOUT Sharpe Ratio of 1.71. The chart below compares the historical Sharpe Ratios of FAD and BOUT, 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

	FAD	BOUT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.88	1.71	+0.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.55	0.43	+0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.69	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.41	+0.09

Drawdowns

FAD vs. BOUT - Drawdown Comparison

The maximum FAD drawdown since its inception was -54.33%, which is greater than BOUT's maximum drawdown of -36.75%. Use the drawdown chart below to compare losses from any high point for FAD and BOUT.

Drawdown Indicators

	FAD	BOUT	Difference
Max Drawdown Largest peak-to-trough decline	-54.33%	-36.75%	-17.58%
Max Drawdown (1Y) Largest decline over 1 year	-10.66%	-11.76%	+1.10%
Max Drawdown (3Y) Largest decline over 3 years	-23.55%	-25.31%	+1.76%
Max Drawdown (5Y) Largest decline over 5 years	-31.99%	-28.28%	-3.71%
Max Drawdown (10Y) Largest decline over 10 years	-37.25%	—	—
Current Drawdown Current decline from peak	-0.15%	-0.01%	-0.14%
Average Drawdown Average peak-to-trough decline	-9.64%	-12.29%	+2.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.76%	3.93%	-1.17%

Volatility

FAD vs. BOUT - Volatility Comparison

First Trust Multi Cap Growth AlphaDEX Fund (FAD) and Innovator IBD Breakout Opportunities ETF (BOUT) have volatilities of 6.01% and 5.96%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAD	BOUT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.01%	5.96%	+0.05%
Volatility (6M) Calculated over the trailing 6-month period	14.14%	16.05%	-1.91%
Volatility (1Y) Calculated over the trailing 1-year period	18.50%	20.79%	-2.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.53%	19.48%	+1.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.18%	22.93%	-1.75%

FAD vs. BOUT - Expense Ratio Comparison

FAD has a 0.63% expense ratio, which is lower than BOUT's 0.80% expense ratio.

Dividends

FAD vs. BOUT - Dividend Comparison

FAD's dividend yield for the trailing twelve months is around 0.09%, less than BOUT's 0.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BOUT Innovator IBD Breakout Opportunities ETF	0.26%	0.34%	0.60%	1.32%	1.35%	0.00%	0.00%	0.00%	0.22%	0.00%	0.00%	0.00%
FAD First Trust Multi Cap Growth AlphaDEX Fund	0.09%	0.09%	0.59%	0.51%	0.60%	0.09%	0.32%	0.48%	0.20%	0.22%	0.64%	0.41%

Frequently Asked Questions

Can I hold both FAD and BOUT in my portfolio?

FAD and BOUT have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAD or BOUT?

FAD has higher volatility (6.01%) compared to BOUT (5.96%). In terms of maximum drawdown, FAD dropped -54.33% vs BOUT's -36.75%.

Which ETF is better, FAD or BOUT?

On 5-year performance, FAD leads with 11.25% vs 8.25% for BOUT. On fees, FAD is cheaper at 0.63% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAD or BOUT?

Over the 5-year period, FAD has performed better with a 11.25% return vs 8.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAD or BOUT?

FAD is cheaper with a 0.63% expense ratio, compared with 0.80% for BOUT.

Which ETF pays a higher dividend yield, FAD or BOUT?

BOUT has the higher dividend yield at 0.26%, compared with 0.09% for FAD.

What is the main difference between FAD and BOUT?

FAD tracks NASDAQ AlphaDEX Multi Cap Growth Index, while BOUT tracks IBD Breakout Stocks Total Return Index. They also come from different issuers: First Trust and Innovator. Their fees differ too: 0.63% for FAD and 0.80% for BOUT.

Which has better risk-adjusted returns?

FAD currently has the higher Sharpe Ratio (1.88 vs 1.71), 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.