FDT vs. IAU

Last updated Jun 13, 2026

FDT (First Trust Developed Markets ex-US AlphaDEX Fund) and IAU (iShares Gold Trust) are both exchange-traded funds - FDT is a Foreign Large Cap Equities fund tracking the NASDAQ AlphaDEX DM Ex-US Index, while IAU is a Gold fund tracking the LBMA Gold Price. Both are passively managed. Over the past 10 years, FDT returned 11.17%/yr vs 12.31%/yr for IAU. At a 0.20 correlation, their price movements are largely independent. FDT charges 0.80%/yr vs 0.25%/yr for IAU.

Performance

FDT vs. IAU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Developed Markets ex-US AlphaDEX Fund (FDT) and iShares Gold Trust (IAU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDT achieves a 23.23% return, which is significantly higher than IAU's -2.44% return. Over the past 10 years, FDT has underperformed IAU with an annualized return of 11.17%, while IAU has yielded a comparatively higher 12.31% annualized return.

FDT

• 1D: 0.21%
• 1M: -1.96%
• YTD: 23.23%
• 6M: 24.33%
• 1Y: 50.01%
• 3Y*: 27.84%
• 5Y*: 12.16%
• 10Y*: 11.17%

IAU

• 1D: 0.08%
• 1M: -9.54%
• YTD: -2.44%
• 6M: -2.22%
• 1Y: 22.32%
• 3Y*: 29.07%
• 5Y*: 17.23%
• 10Y*: 12.31%

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

FDT vs. IAU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDT First Trust Developed Markets ex-US AlphaDEX Fund	23.23%	52.21%	6.97%	15.03%	-19.51%	11.43%	4.29%	16.82%	-19.98%	34.42%
IAU iShares Gold Trust	-2.44%	63.95%	26.85%	12.84%	-0.63%	-4.00%	25.03%	17.98%	-1.76%	12.91%

Correlation

The correlation between FDT and IAU is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.36
Correlation (10Y) Calculated over the trailing 10-year period	0.25
Correlation (All Time) Calculated using the full available price history since Apr 19, 2011	0.20

Over the past year, FDT and IAU have become more correlated (0.48) than their long-term average of 0.20, meaning their price movements have been converging.

FDT vs. IAU - Sectors Allocation Comparison

Sectors	FDT	IAU
Industrials	34.0%	-
Consumer Cyclical	11.5%	-
Financial Services	10.2%	-
Basic Materials	9.6%	-
Energy	9.2%	-
Technology	8.1%	-
Real Estate	5.3%	100.0%
Utilities	5.2%	-
Consumer Defensive	2.8%	-
Communication Services	2.7%	-
Healthcare	1.4%	-

Return for Risk

FDT vs. IAU — Risk / Return Rank

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

FDT

FDT Risk / Return Rank: 84
FDT Sharpe Ratio Rank: 88
FDT Sortino Ratio Rank: 84
FDT Omega Ratio Rank: 86
FDT Calmar Ratio Rank: 80
FDT Martin Ratio Rank: 82

IAU

IAU Risk / Return Rank: 26
IAU Sharpe Ratio Rank: 28
IAU Sortino Ratio Rank: 25
IAU Omega Ratio Rank: 30
IAU Calmar Ratio Rank: 24
IAU Martin Ratio Rank: 24

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.

FDT vs. IAU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Developed Markets ex-US AlphaDEX Fund (FDT) and iShares Gold Trust (IAU). 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.

	FDT	IAU	Difference
Sharpe ratio: Return per unit of total volatility	2.54	0.89	+1.65
Sortino ratio: Return per unit of downside risk	3.27	1.25	+2.02
Omega ratio: Gain probability vs. loss probability	1.46	1.19	+0.27
Calmar ratio: Return relative to maximum drawdown	3.70	0.99	+2.72
Martin ratio: Return relative to average drawdown	14.01	2.83	+11.18

FDT vs. IAU - Sharpe Ratio Comparison

The current FDT Sharpe Ratio is 2.54, which is higher than the IAU Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of FDT and IAU, 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

FDT vs. IAU - Drawdown Comparison

The maximum FDT drawdown since its inception was -46.10%, roughly equal to the maximum IAU drawdown of -45.14%. Use the drawdown chart below to compare losses from any high point for FDT and IAU.

Drawdown Indicators

	FDT	IAU	Difference
Max Drawdown Largest peak-to-trough decline	-46.10%	-45.14%	-0.96%
Max Drawdown (1Y) Largest decline over 1 year	-13.41%	-24.40%	+10.99%
Max Drawdown (3Y) Largest decline over 3 years	-14.29%	-24.40%	+10.11%
Max Drawdown (5Y) Largest decline over 5 years	-32.80%	-24.40%	-8.40%
Max Drawdown (10Y) Largest decline over 10 years	-46.10%	-24.40%	-21.70%
Current Drawdown Current decline from peak	-3.37%	-22.03%	+18.66%
Average Drawdown Average peak-to-trough decline	-10.76%	-15.97%	+5.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.54%	8.47%	-4.93%

Volatility

FDT vs. IAU - Volatility Comparison

First Trust Developed Markets ex-US AlphaDEX Fund (FDT) has a higher volatility of 8.93% compared to iShares Gold Trust (IAU) at 7.70%. This indicates that FDT's price experiences larger fluctuations and is considered to be riskier than IAU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDT	IAU	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.93%	7.70%	+1.23%
Volatility (6M) Calculated over the trailing 6-month period	17.27%	23.94%	-6.67%
Volatility (1Y) Calculated over the trailing 1-year period	19.59%	27.17%	-7.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.46%	18.16%	+0.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.62%	16.02%	+2.60%

FDT vs. IAU - Expense Ratio Comparison

FDT has a 0.80% expense ratio, which is higher than IAU's 0.25% expense ratio.

Dividends

FDT vs. IAU - Dividend Comparison

FDT's dividend yield for the trailing twelve months is around 2.89%, while IAU has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDT First Trust Developed Markets ex-US AlphaDEX Fund	2.89%	3.27%	3.89%	4.36%	2.29%	3.80%	2.42%	2.78%	2.13%	1.57%	1.76%	1.83%
IAU iShares Gold Trust	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FDT and IAU in my portfolio?

FDT and IAU have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDT or IAU?

FDT has higher volatility (8.93%) compared to IAU (7.70%). In terms of maximum drawdown, FDT dropped -46.10% vs IAU's -45.14%.

Which ETF is better, FDT or IAU?

On 10-year performance, IAU leads with 12.31% vs 11.17% for FDT. On fees, IAU is cheaper at 0.25% per year. On volatility, IAU has been the lower-risk option at 7.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDT or IAU?

Over the 10-year period, IAU has performed better with a 12.31% return vs 11.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDT or IAU?

IAU is cheaper with a 0.25% expense ratio, compared with 0.80% for FDT.

Which ETF pays a higher dividend yield, FDT or IAU?

FDT has the higher dividend yield at 2.89%, compared with 0.00% for IAU.

What is the main difference between FDT and IAU?

FDT is categorized as Foreign Large Cap Equities, while IAU is Gold. FDT tracks NASDAQ AlphaDEX DM Ex-US Index, while IAU tracks LBMA Gold Price. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.80% for FDT and 0.25% for IAU.

Which has better risk-adjusted returns?

FDT currently has the higher Sharpe Ratio (2.54 vs 0.89), 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.