FDD vs. FEP

Last updated Jun 24, 2026

FDD (First Trust STOXX European Select Dividend Index Fund) and FEP (First Trust Europe AlphaDEX Fund) are both Europe Equities funds from First Trust - FDD tracks the STOXX Europe Select Dividend 30 while FEP tracks the Defined Europe Index. Both are passively managed. Over the past 10 years, FDD returned 10.75%/yr vs 11.19%/yr for FEP. Their correlation of 0.80 suggests significant overlap in exposure. FDD charges 0.58%/yr vs 0.80%/yr for FEP.

Performance

FDD vs. FEP - 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 Europe AlphaDEX Fund (FEP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDD achieves a 10.10% return, which is significantly higher than FEP's 7.28% return. Both investments have delivered pretty close results over the past 10 years, with FDD having a 10.75% annualized return and FEP not far ahead at 11.19%.

FDD

• 1D: -1.94%
• 1M: -2.36%
• YTD: 10.10%
• 6M: 10.41%
• 1Y: 30.12%
• 3Y*: 26.20%
• 5Y*: 11.36%
• 10Y*: 10.75%

FEP

• 1D: -1.39%
• 1M: -2.05%
• YTD: 7.28%
• 6M: 7.31%
• 1Y: 27.23%
• 3Y*: 23.84%
• 5Y*: 9.54%
• 10Y*: 11.19%

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

FDD vs. FEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDD First Trust STOXX European Select Dividend Index Fund	10.10%	62.50%	0.28%	14.16%	-16.14%	16.03%	-3.80%	23.79%	-8.98%	19.07%
FEP First Trust Europe AlphaDEX Fund	7.28%	55.72%	3.38%	16.85%	-22.97%	17.03%	4.12%	24.83%	-19.00%	36.27%

Correlation

The correlation between FDD and FEP is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.91
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since Apr 26, 2011	0.80

The correlation between FDD and FEP shifts across timeframes, from 0.80 (all time) to 0.91 (5 years), reflecting how their relationship changes across market environments.

FDD vs. FEP - Sectors Allocation Comparison

Sectors	FDD	FEP
Financial Services	52.0%	10.0%
Industrials	13.3%	26.0%
Consumer Cyclical	12.3%	11.1%
Energy	10.4%	10.2%
Utilities	6.0%	6.8%
Consumer Defensive	3.6%	7.8%
Real Estate	3.3%	5.0%
Basic Materials	3.1%	11.6%
Communication Services	2.1%	3.6%
Healthcare	-	4.7%
Technology	-	3.2%

Return for Risk

FDD vs. FEP — Risk / Return Rank

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

FDD

FDD Risk / Return Rank: 60
FDD Sharpe Ratio Rank: 59
FDD Sortino Ratio Rank: 58
FDD Omega Ratio Rank: 54
FDD Calmar Ratio Rank: 67
FDD Martin Ratio Rank: 62

FEP

FEP Risk / Return Rank: 49
FEP Sharpe Ratio Rank: 49
FEP Sortino Ratio Rank: 48
FEP Omega Ratio Rank: 47
FEP Calmar Ratio Rank: 49
FEP 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.

FDD vs. FEP - 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 Europe AlphaDEX Fund (FEP). 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	FEP	Difference
Sharpe ratio: Return per unit of total volatility	1.88	1.59	+0.29
Sortino ratio: Return per unit of downside risk	2.61	2.22	+0.39
Omega ratio: Gain probability vs. loss probability	1.32	1.29	+0.04
Calmar ratio: Return relative to maximum drawdown	3.22	2.25	+0.97
Martin ratio: Return relative to average drawdown	10.63	8.64	+1.99

FDD vs. FEP - Sharpe Ratio Comparison

The current FDD Sharpe Ratio is 1.88, which is comparable to the FEP Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of FDD and FEP, 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. FEP - Drawdown Comparison

The maximum FDD drawdown since its inception was -74.77%, which is greater than FEP's maximum drawdown of -46.05%. Use the drawdown chart below to compare losses from any high point for FDD and FEP.

Drawdown Indicators

	FDD	FEP	Difference
Max Drawdown Largest peak-to-trough decline	-74.77%	-46.05%	-28.72%
Max Drawdown (1Y) Largest decline over 1 year	-9.39%	-12.13%	+2.74%
Max Drawdown (3Y) Largest decline over 3 years	-13.06%	-15.83%	+2.77%
Max Drawdown (5Y) Largest decline over 5 years	-34.84%	-38.99%	+4.15%
Max Drawdown (10Y) Largest decline over 10 years	-41.43%	-46.05%	+4.62%
Current Drawdown Current decline from peak	-3.52%	-3.89%	+0.37%
Average Drawdown Average peak-to-trough decline	-35.37%	-11.99%	-23.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	3.16%	-0.32%

Volatility

FDD vs. FEP - Volatility Comparison

First Trust STOXX European Select Dividend Index Fund (FDD) and First Trust Europe AlphaDEX Fund (FEP) have volatilities of 5.51% and 5.32%, 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	FEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.51%	5.32%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	13.16%	14.58%	-1.42%
Volatility (1Y) Calculated over the trailing 1-year period	16.09%	17.18%	-1.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.48%	19.72%	-1.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.86%	20.33%	-0.47%

FDD vs. FEP - Expense Ratio Comparison

FDD has a 0.58% expense ratio, which is lower than FEP's 0.80% expense ratio.

Dividends

FDD vs. FEP - Dividend Comparison

FDD's dividend yield for the trailing twelve months is around 3.59%, more than FEP's 3.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDD First Trust STOXX European Select Dividend Index Fund	3.59%	3.99%	7.65%	6.85%	6.07%	3.44%	4.01%	4.69%	5.05%	2.78%	4.88%	4.35%
FEP First Trust Europe AlphaDEX Fund	3.05%	3.33%	4.94%	3.27%	3.00%	3.49%	2.32%	2.63%	2.62%	1.65%	2.14%	2.20%

Frequently Asked Questions

Can I hold both FDD and FEP in my portfolio?

With a correlation of 0.90, FDD and FEP move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FDD or FEP?

FDD has higher volatility (5.51%) compared to FEP (5.32%). In terms of maximum drawdown, FDD dropped -74.77% vs FEP's -46.05%.

Which ETF is better, FDD or FEP?

On 10-year performance, FEP leads with 11.19% vs 10.75% for FDD. On fees, FDD is cheaper at 0.58% per year. On volatility, FEP has been the lower-risk option at 5.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDD or FEP?

Over the 10-year period, FEP has performed better with a 11.19% return vs 10.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDD or FEP?

FDD is cheaper with a 0.58% expense ratio, compared with 0.80% for FEP.

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

FDD has the higher dividend yield at 3.59%, compared with 3.05% for FEP.

What is the main difference between FDD and FEP?

FDD tracks STOXX Europe Select Dividend 30, while FEP tracks Defined Europe Index. Their fees differ too: 0.58% for FDD and 0.80% for FEP.

Which has better risk-adjusted returns?

FDD currently has the higher Sharpe Ratio (1.88 vs 1.59), 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.