FDD vs. DFE

Last updated Jun 4, 2026

FDD (First Trust STOXX European Select Dividend Index Fund) and DFE (WisdomTree Europe SmallCap Dividend Fund) are both Europe Equities funds - FDD tracks the STOXX Europe Select Dividend 30 while DFE tracks the WisdomTree Europe SmallCap Dividend Index. Both are passively managed. Over the past 10 years, FDD returned 9.96%/yr vs 6.78%/yr for DFE. A 0.75 correlation means they provide meaningful diversification when combined. Both charge a 0.58% expense ratio.

Performance

FDD vs. DFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust STOXX European Select Dividend Index Fund (FDD) and WisdomTree Europe SmallCap Dividend Fund (DFE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDD achieves a 11.53% return, which is significantly higher than DFE's 5.19% return. Over the past 10 years, FDD has outperformed DFE with an annualized return of 9.96%, while DFE has yielded a comparatively lower 6.78% annualized return.

FDD

• 1D: -1.17%
• 1M: 3.51%
• YTD: 11.53%
• 6M: 17.78%
• 1Y: 33.02%
• 3Y*: 25.85%
• 5Y*: 11.03%
• 10Y*: 9.96%

DFE

• 1D: -1.08%
• 1M: 1.12%
• YTD: 5.19%
• 6M: 8.60%
• 1Y: 14.01%
• 3Y*: 14.44%
• 5Y*: 4.05%
• 10Y*: 6.78%

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

FDD vs. DFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDD First Trust STOXX European Select Dividend Index Fund	11.53%	62.50%	0.28%	14.16%	-16.14%	16.03%	-3.80%	23.79%	-8.98%	19.07%
DFE WisdomTree Europe SmallCap Dividend Fund	5.19%	32.85%	-0.61%	14.94%	-22.15%	18.44%	2.15%	27.15%	-21.23%	32.71%

Correlation

The correlation between FDD and DFE is 0.84, 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	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Aug 31, 2007	0.75

The correlation between FDD and DFE shifts across timeframes, from 0.75 (all time) to 0.88 (5 years), reflecting how their relationship changes across market environments.

FDD vs. DFE - Sectors Allocation Comparison

Sectors	FDD	DFE
Financial Services	52.2%	9.7%
Industrials	12.5%	25.3%
Consumer Cyclical	12.3%	9.5%
Energy	10.8%	6.9%
Utilities	6.0%	3.5%
Consumer Defensive	3.7%	4.3%
Real Estate	3.5%	6.3%
Basic Materials	2.9%	7.5%
Communication Services	2.1%	5.5%
Healthcare	-	3.5%
Technology	-	7.1%

Return for Risk

FDD vs. DFE — Risk / Return Rank

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

FDD

FDD Risk / Return Rank: 64
FDD Sharpe Ratio Rank: 63
FDD Sortino Ratio Rank: 62
FDD Omega Ratio Rank: 60
FDD Calmar Ratio Rank: 70
FDD Martin Ratio Rank: 64

DFE

DFE Risk / Return Rank: 27
DFE Sharpe Ratio Rank: 27
DFE Sortino Ratio Rank: 26
DFE Omega Ratio Rank: 26
DFE Calmar Ratio Rank: 26
DFE Martin Ratio Rank: 29

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.

FDD vs. DFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust STOXX European Select Dividend Index Fund (FDD) and WisdomTree Europe SmallCap Dividend Fund (DFE). 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.

	FDD	DFE	Difference
Sharpe ratio Return per unit of total volatility	2.16	0.96	+1.19
Sortino ratio Return per unit of downside risk	2.98	1.43	+1.55
Omega ratio Gain probability vs. loss probability	1.37	1.18	+0.20
Calmar ratio Return relative to maximum drawdown	3.53	1.23	+2.30
Martin ratio Return relative to average drawdown	11.86	4.24	+7.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FDD vs. DFE - Sharpe Ratio Comparison

The current FDD Sharpe Ratio is 2.16, which is higher than the DFE Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of FDD and DFE, 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

	FDD	DFE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.16	0.96	+1.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.60	0.21	+0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.34	+0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.10	0.29	-0.20

Drawdowns

FDD vs. DFE - Drawdown Comparison

The maximum FDD drawdown since its inception was -74.77%, which is greater than DFE's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for FDD and DFE.

Drawdown Indicators

	FDD	DFE	Difference
Max Drawdown Largest peak-to-trough decline	-74.77%	-69.38%	-5.39%
Max Drawdown (1Y) Largest decline over 1 year	-9.39%	-11.41%	+2.02%
Max Drawdown (3Y) Largest decline over 3 years	-13.06%	-16.41%	+3.35%
Max Drawdown (5Y) Largest decline over 5 years	-35.11%	-40.34%	+5.23%
Max Drawdown (10Y) Largest decline over 10 years	-41.43%	-49.66%	+8.23%
Current Drawdown Current decline from peak	-2.26%	-3.11%	+0.85%
Average Drawdown Average peak-to-trough decline	-35.47%	-17.73%	-17.74%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.79%	3.31%	-0.52%

Volatility

FDD vs. DFE - Volatility Comparison

First Trust STOXX European Select Dividend Index Fund (FDD) and WisdomTree Europe SmallCap Dividend Fund (DFE) have volatilities of 5.22% and 5.06%, 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

	FDD	DFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.22%	5.06%	+0.16%
Volatility (6M) Calculated over the trailing 6-month period	12.35%	11.98%	+0.37%
Volatility (1Y) Calculated over the trailing 1-year period	15.43%	14.64%	+0.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.39%	19.01%	-0.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.16%	19.77%	+0.39%

FDD vs. DFE - Expense Ratio Comparison

Both FDD and DFE have an expense ratio of 0.58%.

Dividends

FDD vs. DFE - Dividend Comparison

FDD's dividend yield for the trailing twelve months is around 3.55%, less than DFE's 3.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DFE WisdomTree Europe SmallCap Dividend Fund	3.89%	4.38%	4.93%	4.97%	5.84%	2.56%	2.43%	3.39%	4.97%	2.53%	4.05%	2.78%
FDD First Trust STOXX European Select Dividend Index Fund	3.55%	3.99%	7.65%	6.85%	6.07%	3.44%	4.01%	4.69%	5.05%	2.78%	4.88%	4.35%

Frequently Asked Questions

Can I hold both FDD and DFE in my portfolio?

FDD and DFE have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDD or DFE?

FDD has higher volatility (5.22%) compared to DFE (5.06%). In terms of maximum drawdown, FDD dropped -74.77% vs DFE's -69.38%.

Which ETF is better, FDD or DFE?

On 10-year performance, FDD leads with 9.96% vs 6.78% for DFE. Both ETFs have the same 0.58% expense ratio. On volatility, DFE has been the lower-risk option at 5.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDD or DFE?

Over the 10-year period, FDD has performed better with a 9.96% return vs 6.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDD or DFE?

FDD and DFE have the same expense ratio: 0.58% per year.

Which ETF pays a higher dividend yield, FDD or DFE?

DFE has the higher dividend yield at 3.89%, compared with 3.55% for FDD.

What is the main difference between FDD and DFE?

FDD tracks STOXX Europe Select Dividend 30, while DFE tracks WisdomTree Europe SmallCap Dividend Index. They also come from different issuers: First Trust and WisdomTree.

Which has better risk-adjusted returns?

FDD currently has the higher Sharpe Ratio (2.16 vs 0.96), 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.