FDN vs. TRFM

Last updated Jun 25, 2026

FDN (First Trust Dow Jones Internet Index) and TRFM (AAM Transformers ETF) are both exchange-traded funds - FDN is a Large Cap Growth Equities fund tracking the Dow Jones Internet Index, while TRFM is a Technology Equities fund tracking the Pence Transformers Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, FDN returned 17.50%/yr vs 29.94%/yr for TRFM. Their correlation of 0.86 suggests significant overlap in exposure. FDN charges 0.52%/yr vs 0.49%/yr for TRFM.

Performance

FDN vs. TRFM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dow Jones Internet Index (FDN) and AAM Transformers ETF (TRFM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDN achieves a -3.82% return, which is significantly lower than TRFM's 26.82% return.

FDN

• 1D: 0.17%
• 1M: -5.47%
• YTD: -3.82%
• 6M: -4.85%
• 1Y: -0.83%
• 3Y*: 17.50%
• 5Y*: 1.22%
• 10Y*: 13.87%

TRFM

• 1D: -0.28%
• 1M: 3.37%
• YTD: 26.82%
• 6M: 24.89%
• 1Y: 43.37%
• 3Y*: 29.94%
• 5Y*: —
• 10Y*: —

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

FDN vs. TRFM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FDN First Trust Dow Jones Internet Index	-3.82%	10.70%	30.35%	51.48%	-7.23%
TRFM AAM Transformers ETF	26.82%	25.76%	19.96%	44.71%	-9.92%

Correlation

The correlation between FDN and TRFM is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (All Time) Calculated using the full available price history since Jul 12, 2022	0.86

The correlation between FDN and TRFM shifts across timeframes, from 0.68 (1 year) to 0.86 (all time), reflecting how their relationship changes across market environments.

FDN vs. TRFM - Sectors Allocation Comparison

Sectors	FDN	TRFM
Technology	43.1%	53.3%
Communication Services	27.0%	12.3%
Consumer Cyclical	25.5%	17.7%
Financial Services	2.0%	2.8%
Industrials	1.3%	7.2%
Healthcare	1.2%	0.2%
Basic Materials	-	1.2%
Consumer Defensive	-	-
Energy	-	3.5%
Real Estate	-	-
Utilities	-	1.7%

Return for Risk

FDN vs. TRFM — Risk / Return Rank

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

FDN

FDN Risk / Return Rank: 8
FDN Sharpe Ratio Rank: 8
FDN Sortino Ratio Rank: 8
FDN Omega Ratio Rank: 8
FDN Calmar Ratio Rank: 9
FDN Martin Ratio Rank: 8

TRFM

TRFM Risk / Return Rank: 62
TRFM Sharpe Ratio Rank: 61
TRFM Sortino Ratio Rank: 54
TRFM Omega Ratio Rank: 55
TRFM Calmar Ratio Rank: 74
TRFM Martin Ratio Rank: 67

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.

FDN vs. TRFM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Internet Index (FDN) and AAM Transformers ETF (TRFM). 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.

	FDN	TRFM	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	1.79	-1.84
Sortino ratio: Return per unit of downside risk	0.08	2.33	-2.25
Omega ratio: Gain probability vs. loss probability	1.01	1.30	-0.29
Calmar ratio: Return relative to maximum drawdown	-0.04	3.36	-3.39
Martin ratio: Return relative to average drawdown	-0.10	10.85	-10.95

FDN vs. TRFM - Sharpe Ratio Comparison

The current FDN Sharpe Ratio is -0.04, which is lower than the TRFM Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of FDN and TRFM, 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

FDN vs. TRFM - Drawdown Comparison

The maximum FDN drawdown since its inception was -61.55%, which is greater than TRFM's maximum drawdown of -28.40%. Use the drawdown chart below to compare losses from any high point for FDN and TRFM.

Drawdown Indicators

	FDN	TRFM	Difference
Max Drawdown Largest peak-to-trough decline	-61.55%	-28.40%	-33.15%
Max Drawdown (1Y) Largest decline over 1 year	-21.31%	-12.99%	-8.32%
Max Drawdown (3Y) Largest decline over 3 years	-24.98%	-28.40%	+3.42%
Max Drawdown (5Y) Largest decline over 5 years	-53.97%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-53.97%	—	—
Current Drawdown Current decline from peak	-10.65%	-3.87%	-6.78%
Average Drawdown Average peak-to-trough decline	-11.81%	-6.58%	-5.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.57%	4.01%	+4.56%

Volatility

FDN vs. TRFM - Volatility Comparison

The current volatility for First Trust Dow Jones Internet Index (FDN) is 7.41%, while AAM Transformers ETF (TRFM) has a volatility of 11.26%. This indicates that FDN experiences smaller price fluctuations and is considered to be less risky than TRFM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDN	TRFM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.41%	11.26%	-3.85%
Volatility (6M) Calculated over the trailing 6-month period	15.48%	19.61%	-4.13%
Volatility (1Y) Calculated over the trailing 1-year period	19.74%	24.43%	-4.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.36%	27.26%	+0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.62%	27.26%	-1.64%

FDN vs. TRFM - Expense Ratio Comparison

FDN has a 0.52% expense ratio, which is higher than TRFM's 0.49% expense ratio.

Dividends

FDN vs. TRFM - Dividend Comparison

FDN has not paid dividends to shareholders, while TRFM's dividend yield for the trailing twelve months is around 0.13%.

Position	TTM	2025
FDN First Trust Dow Jones Internet Index	0.00%	0.00%
TRFM AAM Transformers ETF	0.13%	0.17%

Frequently Asked Questions

Can I hold both FDN and TRFM in my portfolio?

FDN and TRFM have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDN or TRFM?

TRFM has higher volatility (11.26%) compared to FDN (7.41%). In terms of maximum drawdown, FDN dropped -61.55% vs TRFM's -28.40%.

Which ETF is better, FDN or TRFM?

On 3-year performance, TRFM leads with 29.94% vs 17.50% for FDN. On fees, TRFM is cheaper at 0.49% per year. On volatility, FDN has been the lower-risk option at 7.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDN or TRFM?

Over the 3-year period, TRFM has performed better with a 29.94% return vs 17.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDN or TRFM?

TRFM is cheaper with a 0.49% expense ratio, compared with 0.52% for FDN.

Which ETF pays a higher dividend yield, FDN or TRFM?

TRFM has the higher dividend yield at 0.13%, compared with 0.00% for FDN.

What is the main difference between FDN and TRFM?

FDN is categorized as Large Cap Growth Equities, while TRFM is Technology Equities. FDN tracks Dow Jones Internet Index, while TRFM tracks Pence Transformers Index - Benchmark TR Gross. They also come from different issuers: First Trust and AAM. Their fees differ too: 0.52% for FDN and 0.49% for TRFM.

Which has better risk-adjusted returns?

TRFM currently has the higher Sharpe Ratio (1.79 vs -0.04), 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.