FDL vs. ALAI

Last updated Jun 23, 2026

FDL (First Trust Morningstar Dividend Leaders Index Fund) and ALAI (Alger AI Enablers & Adopters ETF) are both exchange-traded funds - FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index, while ALAI is a Technology Equities fund actively managed by Alger. FDL is passively managed, while ALAI is actively managed. Over the past year, FDL returned 21.02% vs 61.78% for ALAI. At a correlation of -0.02, they often move in opposite directions. FDL charges 0.43%/yr vs 0.55%/yr for ALAI.

Performance

FDL vs. ALAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Morningstar Dividend Leaders Index Fund (FDL) and Alger AI Enablers & Adopters ETF (ALAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDL achieves a 11.33% return, which is significantly lower than ALAI's 27.78% return.

FDL

• 1D: -0.16%
• 1M: -3.91%
• YTD: 11.33%
• 6M: 11.38%
• 1Y: 21.02%
• 3Y*: 18.63%
• 5Y*: 12.95%
• 10Y*: 10.99%

ALAI

• 1D: -1.30%
• 1M: 5.90%
• YTD: 27.78%
• 6M: 25.70%
• 1Y: 61.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FDL vs. ALAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FDL First Trust Morningstar Dividend Leaders Index Fund	11.33%	14.79%	11.16%
ALAI Alger AI Enablers & Adopters ETF	27.78%	39.81%	32.38%

Correlation

The correlation between FDL and ALAI is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.17
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	-0.02

The correlation between FDL and ALAI shifts across timeframes, from -0.17 (1 year) to -0.02 (all time), reflecting how their relationship changes across market environments.

FDL vs. ALAI - Sectors Allocation Comparison

Sectors	FDL	ALAI
Energy	25.7%	-
Healthcare	17.6%	2.0%
Financial Services	15.2%	4.0%
Consumer Defensive	14.4%	-
Communication Services	10.6%	21.1%
Utilities	6.5%	2.8%
Consumer Cyclical	4.7%	12.7%
Industrials	3.9%	2.2%
Technology	1.4%	54.7%
Basic Materials	0.3%	0.5%
Real Estate	-	-

Return for Risk

FDL vs. ALAI — Risk / Return Rank

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

FDL

FDL Risk / Return Rank: 65
FDL Sharpe Ratio Rank: 57
FDL Sortino Ratio Rank: 62
FDL Omega Ratio Rank: 53
FDL Calmar Ratio Rank: 88
FDL Martin Ratio Rank: 66

ALAI

ALAI Risk / Return Rank: 68
ALAI Sharpe Ratio Rank: 79
ALAI Sortino Ratio Rank: 69
ALAI Omega Ratio Rank: 67
ALAI Calmar Ratio Rank: 66
ALAI Martin Ratio Rank: 58

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.

FDL vs. ALAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Morningstar Dividend Leaders Index Fund (FDL) and Alger AI Enablers & Adopters ETF (ALAI). 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.

	FDL	ALAI	Difference
Sharpe ratio: Return per unit of total volatility	1.84	2.41	-0.57
Sortino ratio: Return per unit of downside risk	2.80	3.01	-0.21
Omega ratio: Gain probability vs. loss probability	1.32	1.39	-0.07
Calmar ratio: Return relative to maximum drawdown	4.94	3.19	+1.75
Martin ratio: Return relative to average drawdown	11.71	10.01	+1.69

FDL vs. ALAI - Sharpe Ratio Comparison

The current FDL Sharpe Ratio is 1.84, which is comparable to the ALAI Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of FDL and ALAI, 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

FDL vs. ALAI - Drawdown Comparison

The maximum FDL drawdown since its inception was -65.93%, which is greater than ALAI's maximum drawdown of -29.36%. Use the drawdown chart below to compare losses from any high point for FDL and ALAI.

Drawdown Indicators

	FDL	ALAI	Difference
Max Drawdown Largest peak-to-trough decline	-65.93%	-29.36%	-36.57%
Max Drawdown (1Y) Largest decline over 1 year	-4.27%	-19.48%	+15.21%
Max Drawdown (3Y) Largest decline over 3 years	-12.24%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-16.46%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-41.40%	—	—
Current Drawdown Current decline from peak	-4.24%	-1.30%	-2.94%
Average Drawdown Average peak-to-trough decline	-9.64%	-5.12%	-4.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.80%	6.19%	-4.39%

Volatility

FDL vs. ALAI - Volatility Comparison

The current volatility for First Trust Morningstar Dividend Leaders Index Fund (FDL) is 3.52%, while Alger AI Enablers & Adopters ETF (ALAI) has a volatility of 10.54%. This indicates that FDL experiences smaller price fluctuations and is considered to be less risky than ALAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDL	ALAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.52%	10.54%	-7.02%
Volatility (6M) Calculated over the trailing 6-month period	8.03%	20.43%	-12.40%
Volatility (1Y) Calculated over the trailing 1-year period	11.51%	25.82%	-14.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.30%	28.83%	-14.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.13%	28.83%	-11.70%

FDL vs. ALAI - Expense Ratio Comparison

FDL has a 0.43% expense ratio, which is lower than ALAI's 0.55% expense ratio.

Dividends

FDL vs. ALAI - Dividend Comparison

FDL's dividend yield for the trailing twelve months is around 3.74%, more than ALAI's 1.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALAI Alger AI Enablers & Adopters ETF	1.17%	1.50%	0.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FDL First Trust Morningstar Dividend Leaders Index Fund	3.74%	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 FDL and ALAI in my portfolio?

FDL and ALAI have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDL or ALAI?

ALAI has higher volatility (10.54%) compared to FDL (3.52%). In terms of maximum drawdown, FDL dropped -65.93% vs ALAI's -29.36%.

Which ETF is better, FDL or ALAI?

On 1-year performance, ALAI leads with 61.78% vs 21.02% for FDL. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 3.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDL or ALAI?

Over the 1-year period, ALAI has performed better with a 61.78% return vs 21.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDL or ALAI?

FDL is cheaper with a 0.43% expense ratio, compared with 0.55% for ALAI.

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

FDL has the higher dividend yield at 3.74%, compared with 1.17% for ALAI.

What is the main difference between FDL and ALAI?

FDL is categorized as Large Cap Value Equities, while ALAI is Technology Equities. They also come from different issuers: First Trust and Alger. Their fees differ too: 0.43% for FDL and 0.55% for ALAI.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (2.41 vs 1.84), 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.