FAD vs. XMHQ

Last updated Jun 23, 2026

FAD (First Trust Multi Cap Growth AlphaDEX Fund) and XMHQ (Invesco S&P MidCap Quality ETF) are both exchange-traded funds - FAD is a Mid Cap Growth Equities fund tracking the NASDAQ AlphaDEX Multi Cap Growth Index, while XMHQ is a Mid Cap Blend Equities fund tracking the S&P MidCap 400 Quality Index. Both are passively managed. Over the past 10 years, FAD returned 15.21%/yr vs 13.03%/yr for XMHQ. A 0.76 correlation means they provide meaningful diversification when combined. FAD charges 0.63%/yr vs 0.25%/yr for XMHQ.

Performance

FAD vs. XMHQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Multi Cap Growth AlphaDEX Fund (FAD) and Invesco S&P MidCap Quality ETF (XMHQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAD achieves a 22.02% return, which is significantly higher than XMHQ's 8.87% return. Over the past 10 years, FAD has outperformed XMHQ with an annualized return of 15.21%, while XMHQ has yielded a comparatively lower 13.03% annualized return.

FAD

• 1D: 1.04%
• 1M: 7.38%
• YTD: 22.02%
• 6M: 18.82%
• 1Y: 40.18%
• 3Y*: 25.41%
• 5Y*: 11.39%
• 10Y*: 15.21%

XMHQ

• 1D: 0.55%
• 1M: 2.66%
• YTD: 8.87%
• 6M: 6.35%
• 1Y: 16.53%
• 3Y*: 15.38%
• 5Y*: 9.84%
• 10Y*: 13.03%

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

FAD vs. XMHQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAD First Trust Multi Cap Growth AlphaDEX Fund	22.02%	17.23%	23.85%	19.07%	-24.06%	21.17%	34.92%	26.66%	-6.45%	25.75%
XMHQ Invesco S&P MidCap Quality ETF	8.87%	4.71%	16.79%	29.51%	-12.42%	20.98%	26.61%	27.18%	-9.08%	15.64%

Correlation

The correlation between FAD and XMHQ is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.76

The correlation between FAD and XMHQ shifts across timeframes, from 0.76 (all time) to 0.88 (5 years), reflecting how their relationship changes across market environments.

FAD vs. XMHQ - Sectors Allocation Comparison

Sectors	FAD	XMHQ
Technology	27.4%	13.5%
Industrials	25.0%	25.9%
Healthcare	14.8%	20.4%
Consumer Cyclical	10.1%	9.4%
Financial Services	7.8%	14.3%
Real Estate	3.9%	-
Communication Services	3.1%	2.7%
Basic Materials	2.9%	5.0%
Consumer Defensive	2.2%	3.4%
Utilities	1.5%	2.2%
Energy	1.3%	5.9%

Return for Risk

FAD vs. XMHQ — Risk / Return Rank

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

FAD

FAD Risk / Return Rank: 68
FAD Sharpe Ratio Rank: 65
FAD Sortino Ratio Rank: 62
FAD Omega Ratio Rank: 60
FAD Calmar Ratio Rank: 76
FAD Martin Ratio Rank: 77

XMHQ

XMHQ Risk / Return Rank: 33
XMHQ Sharpe Ratio Rank: 30
XMHQ Sortino Ratio Rank: 31
XMHQ Omega Ratio Rank: 27
XMHQ Calmar Ratio Rank: 39
XMHQ Martin Ratio Rank: 37

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. XMHQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Multi Cap Growth AlphaDEX Fund (FAD) and Invesco S&P MidCap Quality ETF (XMHQ). 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.

	FAD	XMHQ	Difference
Sharpe ratio: Return per unit of total volatility	2.07	1.06	+1.01
Sortino ratio: Return per unit of downside risk	2.79	1.63	+1.17
Omega ratio: Gain probability vs. loss probability	1.35	1.18	+0.17
Calmar ratio: Return relative to maximum drawdown	3.79	1.88	+1.91
Martin ratio: Return relative to average drawdown	14.43	5.48	+8.95

FAD vs. XMHQ - Sharpe Ratio Comparison

The current FAD Sharpe Ratio is 2.07, which is higher than the XMHQ Sharpe Ratio of 1.06. The chart below compares the historical Sharpe Ratios of FAD and XMHQ, 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

FAD vs. XMHQ - Drawdown Comparison

The maximum FAD drawdown since its inception was -54.33%, smaller than the maximum XMHQ drawdown of -58.19%. Use the drawdown chart below to compare losses from any high point for FAD and XMHQ.

Drawdown Indicators

	FAD	XMHQ	Difference
Max Drawdown Largest peak-to-trough decline	-54.33%	-58.19%	+3.86%
Max Drawdown (1Y) Largest decline over 1 year	-10.66%	-8.85%	-1.81%
Max Drawdown (3Y) Largest decline over 3 years	-23.55%	-24.56%	+1.01%
Max Drawdown (5Y) Largest decline over 5 years	-31.99%	-25.47%	-6.52%
Max Drawdown (10Y) Largest decline over 10 years	-37.25%	-36.90%	-0.35%
Current Drawdown Current decline from peak	0.00%	-1.26%	+1.26%
Average Drawdown Average peak-to-trough decline	-9.62%	-9.27%	-0.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.79%	3.02%	-0.23%

Volatility

FAD vs. XMHQ - Volatility Comparison

First Trust Multi Cap Growth AlphaDEX Fund (FAD) has a higher volatility of 7.37% compared to Invesco S&P MidCap Quality ETF (XMHQ) at 4.35%. This indicates that FAD's price experiences larger fluctuations and is considered to be riskier than XMHQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAD	XMHQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.37%	4.35%	+3.02%
Volatility (6M) Calculated over the trailing 6-month period	15.27%	11.42%	+3.85%
Volatility (1Y) Calculated over the trailing 1-year period	19.54%	15.76%	+3.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.72%	20.74%	-0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.29%	20.71%	+0.58%

FAD vs. XMHQ - Expense Ratio Comparison

FAD has a 0.63% expense ratio, which is higher than XMHQ's 0.25% expense ratio.

Dividends

FAD vs. XMHQ - Dividend Comparison

FAD's dividend yield for the trailing twelve months is around 0.09%, less than XMHQ's 0.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XMHQ Invesco S&P MidCap Quality ETF	0.70%	0.64%	5.20%	0.73%	1.72%	1.00%	1.12%	1.22%	1.59%	1.06%	1.63%	1.34%

Frequently Asked Questions

Can I hold both FAD and XMHQ in my portfolio?

FAD and XMHQ have a correlation of 0.81, 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 XMHQ?

FAD has higher volatility (7.37%) compared to XMHQ (4.35%). In terms of maximum drawdown, FAD dropped -54.33% vs XMHQ's -58.19%.

Which ETF is better, FAD or XMHQ?

On 10-year performance, FAD leads with 15.21% vs 13.03% for XMHQ. On fees, XMHQ is cheaper at 0.25% per year. On volatility, XMHQ has been the lower-risk option at 4.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAD or XMHQ?

Over the 10-year period, FAD has performed better with a 15.21% return vs 13.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAD or XMHQ?

XMHQ is cheaper with a 0.25% expense ratio, compared with 0.63% for FAD.

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

XMHQ has the higher dividend yield at 0.70%, compared with 0.09% for FAD.

What is the main difference between FAD and XMHQ?

FAD is categorized as Mid Cap Growth Equities, while XMHQ is Mid Cap Blend Equities. FAD tracks NASDAQ AlphaDEX Multi Cap Growth Index, while XMHQ tracks S&P MidCap 400 Quality Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.63% for FAD and 0.25% for XMHQ.

Which has better risk-adjusted returns?

FAD currently has the higher Sharpe Ratio (2.07 vs 1.06), 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.