FDM vs. XLG

Last updated Jun 24, 2026

FDM (First Trust Dow Jones Select MicroCap Index Fund) and XLG (Invesco S&P 500 Top 50 ETF) are both exchange-traded funds - FDM is a Small Cap Blend Equities fund tracking the Dow Jones Select Microcap Index, while XLG is a S&P 500 fund tracking the S&P 500 Top 50 Index. Both are passively managed. Over the past 10 years, FDM returned 12.29%/yr vs 16.94%/yr for XLG. A 0.66 correlation means they provide meaningful diversification when combined. FDM charges 0.60%/yr vs 0.20%/yr for XLG.

Performance

FDM vs. XLG - 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 Invesco S&P 500 Top 50 ETF (XLG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDM achieves a 13.86% return, which is significantly higher than XLG's 1.60% return. Over the past 10 years, FDM has underperformed XLG with an annualized return of 12.29%, while XLG has yielded a comparatively higher 16.94% annualized return.

FDM

• 1D: 0.76%
• 1M: 4.64%
• YTD: 13.86%
• 6M: 12.43%
• 1Y: 30.56%
• 3Y*: 19.96%
• 5Y*: 9.37%
• 10Y*: 12.29%

XLG

• 1D: -1.88%
• 1M: -5.41%
• YTD: 1.60%
• 6M: 0.73%
• 1Y: 19.95%
• 3Y*: 21.35%
• 5Y*: 14.28%
• 10Y*: 16.94%

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

FDM vs. XLG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDM First Trust Dow Jones Select MicroCap Index Fund	13.86%	18.64%	13.00%	12.76%	-11.61%	35.08%	-4.04%	27.45%	-13.53%	8.72%
XLG Invesco S&P 500 Top 50 ETF	1.60%	19.51%	33.49%	38.16%	-24.29%	30.77%	24.15%	32.04%	-3.59%	23.04%

Correlation

The correlation between FDM and XLG is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Sep 30, 2005	0.66

Over the past year, the correlation between FDM and XLG has dropped to 0.43 - well below their long-term average of 0.66, suggesting their price drivers have been diverging.

FDM vs. XLG - Sectors Allocation Comparison

Sectors	FDM	XLG
Financial Services	42.2%	9.0%
Industrials	14.9%	1.9%
Consumer Cyclical	10.4%	11.2%
Technology	6.8%	46.8%
Healthcare	6.2%	7.0%
Energy	4.6%	2.4%
Basic Materials	4.5%	0.6%
Consumer Defensive	4.5%	5.2%
Communication Services	3.3%	16.0%
Real Estate	1.4%	-
Utilities	1.0%	-

Return for Risk

FDM vs. XLG — Risk / Return Rank

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

FDM

FDM Risk / Return Rank: 55
FDM Sharpe Ratio Rank: 50
FDM Sortino Ratio Rank: 52
FDM Omega Ratio Rank: 47
FDM Calmar Ratio Rank: 70
FDM Martin Ratio Rank: 59

XLG

XLG Risk / Return Rank: 39
XLG Sharpe Ratio Rank: 42
XLG Sortino Ratio Rank: 40
XLG Omega Ratio Rank: 41
XLG Calmar Ratio Rank: 33
XLG Martin Ratio Rank: 38

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. XLG - 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 Invesco S&P 500 Top 50 ETF (XLG). 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.

	FDM	XLG	Difference
Sharpe ratio: Return per unit of total volatility	1.63	1.44	+0.20
Sortino ratio: Return per unit of downside risk	2.38	1.98	+0.40
Omega ratio: Gain probability vs. loss probability	1.28	1.26	+0.03
Calmar ratio: Return relative to maximum drawdown	3.30	1.61	+1.69
Martin ratio: Return relative to average drawdown	9.96	5.77	+4.19

FDM vs. XLG - Sharpe Ratio Comparison

The current FDM Sharpe Ratio is 1.63, which is comparable to the XLG Sharpe Ratio of 1.44. The chart below compares the historical Sharpe Ratios of FDM and XLG, 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

FDM vs. XLG - Drawdown Comparison

The maximum FDM drawdown since its inception was -63.45%, which is greater than XLG's maximum drawdown of -52.39%. Use the drawdown chart below to compare losses from any high point for FDM and XLG.

Drawdown Indicators

	FDM	XLG	Difference
Max Drawdown Largest peak-to-trough decline	-63.45%	-52.39%	-11.06%
Max Drawdown (1Y) Largest decline over 1 year	-9.30%	-12.41%	+3.11%
Max Drawdown (3Y) Largest decline over 3 years	-23.47%	-20.70%	-2.77%
Max Drawdown (5Y) Largest decline over 5 years	-23.74%	-28.02%	+4.28%
Max Drawdown (10Y) Largest decline over 10 years	-47.76%	-30.46%	-17.30%
Current Drawdown Current decline from peak	0.00%	-6.91%	+6.91%
Average Drawdown Average peak-to-trough decline	-11.32%	-7.63%	-3.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	3.46%	-0.38%

Volatility

FDM vs. XLG - Volatility Comparison

First Trust Dow Jones Select MicroCap Index Fund (FDM) and Invesco S&P 500 Top 50 ETF (XLG) have volatilities of 4.79% and 5.04%, 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

	FDM	XLG	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.79%	5.04%	-0.25%
Volatility (6M) Calculated over the trailing 6-month period	13.23%	10.74%	+2.49%
Volatility (1Y) Calculated over the trailing 1-year period	18.84%	13.98%	+4.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.40%	18.79%	+2.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.36%	18.88%	+4.48%

FDM vs. XLG - Expense Ratio Comparison

FDM has a 0.60% expense ratio, which is higher than XLG's 0.20% expense ratio.

Dividends

FDM vs. XLG - Dividend Comparison

FDM's dividend yield for the trailing twelve months is around 1.21%, more than XLG's 0.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDM First Trust Dow Jones Select MicroCap Index Fund	1.21%	1.43%	1.56%	1.81%	1.80%	1.08%	1.68%	1.37%	1.26%	0.97%	1.13%	1.45%
XLG Invesco S&P 500 Top 50 ETF	0.66%	0.64%	0.72%	0.97%	1.34%	0.94%	1.25%	1.58%	2.00%	1.85%	2.00%	2.09%

Frequently Asked Questions

Can I hold both FDM and XLG in my portfolio?

FDM and XLG have a correlation of 0.43, 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 XLG?

XLG has higher volatility (5.04%) compared to FDM (4.79%). In terms of maximum drawdown, FDM dropped -63.45% vs XLG's -52.39%.

Which ETF is better, FDM or XLG?

On 10-year performance, XLG leads with 16.94% vs 12.29% for FDM. On fees, XLG is cheaper at 0.20% per year. On volatility, FDM has been the lower-risk option at 4.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDM or XLG?

Over the 10-year period, XLG has performed better with a 16.94% return vs 12.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDM or XLG?

XLG is cheaper with a 0.20% expense ratio, compared with 0.60% for FDM.

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

FDM has the higher dividend yield at 1.21%, compared with 0.66% for XLG.

What is the main difference between FDM and XLG?

FDM is categorized as Small Cap Blend Equities, while XLG is S&P 500. FDM tracks Dow Jones Select Microcap Index, while XLG tracks S&P 500 Top 50 Index. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.60% for FDM and 0.20% for XLG.

Which has better risk-adjusted returns?

FDM currently has the higher Sharpe Ratio (1.63 vs 1.44), 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.