FDD vs. FDL

Last updated Aug 2, 2026

FDD (First Trust STOXX European Select Dividend Index Fund) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - FDD is a Europe Equities fund tracking the STOXX Europe Select Dividend 30, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, FDD returned 11.01%/yr vs 11.09%/yr for FDL. Their 0.55 correlation means they have sometimes moved together and sometimes differently. FDD charges 0.58%/yr vs 0.43%/yr for FDL.

Performance

FDD vs. FDL - 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 First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FDD having a 18.92% return and FDL slightly lower at 18.16%. Both investments have delivered pretty close results over the past 10 years, with FDD having a 11.01% annualized return and FDL not far ahead at 11.09%.

FDD

• 1D: 0.50%
• 1M: 7.25%
• 6M: 13.35%
• YTD: 18.92%
• 1Y: 39.43%
• 3Y*: 27.25%
• 5Y*: 13.14%
• 10Y*: 11.01%
• ALL TIME*: 2.89%

FDL

• 1D: 0.02%
• 1M: 3.27%
• 6M: 9.50%
• YTD: 18.16%
• 1Y: 27.65%
• 3Y*: 18.28%
• 5Y*: 13.98%
• 10Y*: 11.09%
• ALL TIME*: 8.94%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FDD First Trust STOXX European Select Dividend Index Fund	$2.43M	$2.30M	$2.53M
FDL First Trust Morningstar Dividend Leaders Index Fund	$52.24M	$50.06M	$42.95M

FDD vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDD First Trust STOXX European Select Dividend Index Fund	18.92%	62.50%	0.28%	14.16%	-16.14%	16.03%	-3.80%	23.79%	-8.98%	19.07%
FDL First Trust Morningstar Dividend Leaders Index Fund	18.16%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between FDD and FDL is 0.25, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.25
Correlation (3Y) Balances recent behavior with more history.	0.41
Correlation (5Y) Shows whether the relationship held over a longer period.	0.52
Correlation (10Y) Provides a long-term view across more market conditions.	0.57
Correlation (All Time) Calculated using the full available price history since Aug 30, 2007	0.55

Over the past year, the correlation between FDD and FDL has dropped to 0.25 - well below their long-term average of 0.55, suggesting their price drivers have been diverging.

FDD vs. FDL - Sectors Allocation Comparison

Sectors	FDD	FDL
Financial Services	58.2%	13.7%
Industrials	11.4%	3.6%
Consumer Cyclical	9.2%	4.4%
Energy	9.1%	11.1%
Utilities	6.0%	15.4%
Consumer Defensive	4.2%	24.3%
Real Estate	3.3%	-
Basic Materials	2.8%	0.4%
Communication Services	1.9%	11.2%
Healthcare	-	11.7%
Technology	-	4.3%

Return for Risk

FDD vs. FDL — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FDD

FDD Risk / Return Rank: 91
FDD Sharpe Ratio Rank: 93
FDD Sortino Ratio Rank: 92
FDD Omega Ratio Rank: 90
FDD Calmar Ratio Rank: 92
FDD Martin Ratio Rank: 89

FDL

FDL Risk / Return Rank: 92
FDL Sharpe Ratio Rank: 90
FDL Sortino Ratio Rank: 92
FDL Omega Ratio Rank: 88
FDL Calmar Ratio Rank: 96
FDL Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FDD vs. FDL - 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 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.

	FDD	FDL	Difference
Sharpe ratio: Return per unit of total volatility	2.48	2.26	+0.22
Sortino ratio: Return per unit of downside risk	3.38	3.41	-0.04
Omega ratio: Gain probability vs. loss probability	1.42	1.39	+0.03
Calmar ratio: Return relative to maximum drawdown	4.16	6.29	-2.13
Martin ratio: Return relative to average drawdown	13.77	14.86	-1.09

FDD vs. FDL - Sharpe Ratio Comparison

The current FDD Sharpe Ratio is 2.48, which is comparable to the FDL Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of FDD 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

FDD vs. FDL - Drawdown Comparison

The maximum FDD drawdown since its inception was -74.77%, which is greater than FDL's maximum drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for FDD and FDL.

Drawdown Indicators

	FDD	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-74.77%	-65.93%	-8.84%
Max Drawdown (1Y) Largest decline over 1 year	-9.39%	-4.27%	-5.12%
Max Drawdown (3Y) Largest decline over 3 years	-12.90%	-12.24%	-0.66%
Max Drawdown (5Y) Largest decline over 5 years	-34.84%	-16.46%	-18.38%
Max Drawdown (10Y) Largest decline over 10 years	-41.43%	-41.40%	-0.03%
Current Drawdown Current decline from peak	0.00%	-1.96%	+1.96%
Average Drawdown Average peak-to-trough decline	-35.18%	-9.59%	-25.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	1.81%	+1.02%

Volatility

FDD vs. FDL - Volatility Comparison

The current volatility for First Trust STOXX European Select Dividend Index Fund (FDD) is 3.74%, while First Trust Morningstar Dividend Leaders Index Fund (FDL) has a volatility of 4.96%. This indicates that FDD experiences smaller price fluctuations and is considered to be less risky than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDD	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.74%	4.96%	-1.22%
Volatility (6M) Calculated over the trailing 6-month period	13.14%	8.97%	+4.17%
Volatility (1Y) Calculated over the trailing 1-year period	15.79%	11.95%	+3.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.44%	14.44%	+4.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.77%	17.16%	+2.61%

FDD vs. FDL - Expense Ratio Comparison

FDD has a 0.58% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

FDD vs. FDL - Dividend Comparison

FDD's dividend yield for the trailing twelve months is around 5.01%, more than FDL's 3.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDD First Trust STOXX European Select Dividend Index Fund	5.01%	3.99%	7.65%	6.85%	6.07%	3.44%	4.01%	4.69%	5.05%	2.78%	4.88%	4.35%
FDL First Trust Morningstar Dividend Leaders Index Fund	3.59%	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 FDD and FDL in my portfolio?

FDD and FDL have a correlation of 0.25, 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 FDL?

FDL has higher volatility (4.96%) compared to FDD (3.74%). In terms of maximum drawdown, FDD dropped -74.77% vs FDL's -65.93%.

Which ETF is better, FDD or FDL?

On 10-year performance, FDL leads with 11.09% vs 11.01% for FDD. On fees, FDL is cheaper at 0.43% per year. On volatility, FDD has been the lower-risk option at 3.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDD or FDL?

Over the 10-year period, FDL has performed better with a 11.09% return vs 11.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDD or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.58% for FDD.

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

FDD has the higher dividend yield at 5.01%, compared with 3.59% for FDL.

What is the main difference between FDD and FDL?

FDD is categorized as Europe Equities, while FDL is Large Cap Value Equities. FDD tracks STOXX Europe Select Dividend 30, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.58% for FDD and 0.43% for FDL.

Which has better risk-adjusted returns?

FDD currently has the higher Sharpe Ratio (2.48 vs 2.26), 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.