FDM vs. AIRR

Last updated Jun 4, 2026

FDM (First Trust Dow Jones Select MicroCap Index Fund) and AIRR (First Trust RBA American Industrial Renaissance ETF) are both exchange-traded funds - FDM is a Small Cap Blend Equities fund tracking the Dow Jones Select Microcap Index, while AIRR is a Building & Construction fund tracking the Richard Bernstein Advisors American Industrial Renaissance (TR). Both are passively managed. Over the past 10 years, FDM returned 11.42%/yr vs 21.89%/yr for AIRR. Their correlation of 0.84 suggests significant overlap in exposure. FDM charges 0.60%/yr vs 0.70%/yr for AIRR.

Performance

FDM vs. AIRR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones Select MicroCap Index Fund (FDM) and First Trust RBA American Industrial Renaissance ETF (AIRR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDM achieves a 7.48% return, which is significantly lower than AIRR's 31.77% return. Over the past 10 years, FDM has underperformed AIRR with an annualized return of 11.42%, while AIRR has yielded a comparatively higher 21.89% annualized return.

FDM

• 1D: -2.13%
• 1M: -2.89%
• YTD: 7.48%
• 6M: 7.77%
• 1Y: 27.59%
• 3Y*: 18.03%
• 5Y*: 8.37%
• 10Y*: 11.42%

AIRR

• 1D: 0.54%
• 1M: 3.36%
• YTD: 31.77%
• 6M: 31.32%
• 1Y: 65.82%
• 3Y*: 37.10%
• 5Y*: 25.40%
• 10Y*: 21.89%

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

FDM vs. AIRR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDM First Trust Dow Jones Select MicroCap Index Fund	7.48%	18.64%	13.00%	12.76%	-11.61%	35.08%	-4.04%	27.45%	-13.53%	8.72%
AIRR First Trust RBA American Industrial Renaissance ETF	31.77%	27.92%	33.45%	31.43%	-2.08%	33.01%	17.17%	33.97%	-20.57%	16.28%

Correlation

The correlation between FDM and AIRR is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.83
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since Mar 12, 2014	0.84

The correlation between FDM and AIRR shifts across timeframes, from 0.69 (1 year) to 0.85 (10 years), reflecting how their relationship changes across market environments.

FDM vs. AIRR - Sectors Allocation Comparison

Sectors	FDM	AIRR
Financial Services	41.2%	9.6%
Industrials	16.4%	84.6%
Consumer Cyclical	10.0%	-
Technology	6.2%	0.5%
Healthcare	6.2%	-
Energy	5.0%	3.8%
Consumer Defensive	4.7%	-
Basic Materials	4.2%	-
Communication Services	3.7%	-
Real Estate	1.4%	-
Utilities	1.0%	-

Return for Risk

FDM vs. AIRR — Risk / Return Rank

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

FDM

FDM Risk / Return Rank: 47
FDM Sharpe Ratio Rank: 41
FDM Sortino Ratio Rank: 43
FDM Omega Ratio Rank: 39
FDM Calmar Ratio Rank: 60
FDM Martin Ratio Rank: 52

AIRR

AIRR Risk / Return Rank: 78
AIRR Sharpe Ratio Rank: 79
AIRR Sortino Ratio Rank: 73
AIRR Omega Ratio Rank: 67
AIRR Calmar Ratio Rank: 87
AIRR Martin Ratio Rank: 86

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.

FDM vs. AIRR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Select MicroCap Index Fund (FDM) and First Trust RBA American Industrial Renaissance ETF (AIRR). 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.

	FDM	AIRR	Difference
Sharpe ratio Return per unit of total volatility	1.47	2.61	-1.14
Sortino ratio Return per unit of downside risk	2.18	3.37	-1.20
Omega ratio Gain probability vs. loss probability	1.26	1.41	-0.15
Calmar ratio Return relative to maximum drawdown	2.98	5.05	-2.07
Martin ratio Return relative to average drawdown	9.04	18.68	-9.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FDM vs. AIRR - Sharpe Ratio Comparison

The current FDM Sharpe Ratio is 1.47, which is lower than the AIRR Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of FDM and AIRR, 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

	FDM	AIRR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.47	2.61	-1.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	1.01	-0.62
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.49	0.84	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.67	-0.33

Drawdowns

FDM vs. AIRR - Drawdown Comparison

The maximum FDM drawdown since its inception was -63.45%, which is greater than AIRR's maximum drawdown of -42.37%. Use the drawdown chart below to compare losses from any high point for FDM and AIRR.

Drawdown Indicators

	FDM	AIRR	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-42.37%	-21.08%
Max Drawdown (1Y) Largest decline over 1 year	-9.30%	-13.09%	+3.79%
Max Drawdown (3Y) Largest decline over 3 years	-23.47%	-27.95%	+4.48%
Max Drawdown (5Y) Largest decline over 5 years	-23.74%	-27.95%	+4.21%
Max Drawdown (10Y) Largest decline over 10 years	-47.76%	-42.37%	-5.39%
Current Drawdown Current decline from peak	-4.31%	-1.86%	-2.45%
Average Drawdown Average peak-to-trough decline	-11.35%	-7.43%	-3.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.06%	3.53%	-0.47%

Volatility

FDM vs. AIRR - Volatility Comparison

The current volatility for First Trust Dow Jones Select MicroCap Index Fund (FDM) is 4.50%, while First Trust RBA American Industrial Renaissance ETF (AIRR) has a volatility of 7.87%. This indicates that FDM experiences smaller price fluctuations and is considered to be less risky than AIRR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDM	AIRR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.50%	7.87%	-3.37%
Volatility (6M) Calculated over the trailing 6-month period	13.22%	19.82%	-6.60%
Volatility (1Y) Calculated over the trailing 1-year period	18.90%	25.40%	-6.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.39%	25.29%	-3.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.36%	26.29%	-2.93%

FDM vs. AIRR - Expense Ratio Comparison

FDM has a 0.60% expense ratio, which is lower than AIRR's 0.70% expense ratio.

Dividends

FDM vs. AIRR - Dividend Comparison

FDM's dividend yield for the trailing twelve months is around 1.28%, more than AIRR's 0.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIRR First Trust RBA American Industrial Renaissance ETF	0.13%	0.19%	0.18%	0.23%	0.12%	0.05%	0.10%	0.20%	0.43%	0.30%	0.08%	0.47%
FDM First Trust Dow Jones Select MicroCap Index Fund	1.28%	1.43%	1.56%	1.81%	1.80%	1.08%	1.68%	1.37%	1.26%	0.97%	1.13%	1.45%

Frequently Asked Questions

Can I hold both FDM and AIRR in my portfolio?

FDM and AIRR have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDM or AIRR?

AIRR has higher volatility (7.87%) compared to FDM (4.50%). In terms of maximum drawdown, FDM dropped -63.45% vs AIRR's -42.37%.

Which ETF is better, FDM or AIRR?

On 10-year performance, AIRR leads with 21.89% vs 11.42% for FDM. On fees, FDM is cheaper at 0.60% per year. On volatility, FDM has been the lower-risk option at 4.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDM or AIRR?

Over the 10-year period, AIRR has performed better with a 21.89% return vs 11.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDM or AIRR?

FDM is cheaper with a 0.60% expense ratio, compared with 0.70% for AIRR.

Which ETF pays a higher dividend yield, FDM or AIRR?

FDM has the higher dividend yield at 1.28%, compared with 0.13% for AIRR.

What is the main difference between FDM and AIRR?

FDM is categorized as Small Cap Blend Equities, while AIRR is Building & Construction. FDM tracks Dow Jones Select Microcap Index, while AIRR tracks Richard Bernstein Advisors American Industrial Renaissance (TR). Their fees differ too: 0.60% for FDM and 0.70% for AIRR.

Which has better risk-adjusted returns?

AIRR currently has the higher Sharpe Ratio (2.61 vs 1.47), 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.