FDT vs. VEU

Last updated Jun 23, 2026

FDT (First Trust Developed Markets ex-US AlphaDEX Fund) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - FDT tracks the NASDAQ AlphaDEX DM Ex-US Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, FDT returned 11.64%/yr vs 10.74%/yr for VEU. Their correlation of 0.91 suggests significant overlap in exposure. FDT charges 0.80%/yr vs 0.04%/yr for VEU.

Performance

FDT vs. VEU - 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 Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDT achieves a 26.09% return, which is significantly higher than VEU's 16.58% return. Over the past 10 years, FDT has outperformed VEU with an annualized return of 11.64%, while VEU has yielded a comparatively lower 10.74% annualized return.

FDT

• 1D: 0.40%
• 1M: 2.82%
• YTD: 26.09%
• 6M: 26.12%
• 1Y: 54.27%
• 3Y*: 29.97%
• 5Y*: 13.51%
• 10Y*: 11.64%

VEU

• 1D: 0.37%
• 1M: 3.87%
• YTD: 16.58%
• 6M: 17.12%
• 1Y: 35.21%
• 3Y*: 20.50%
• 5Y*: 9.48%
• 10Y*: 10.74%

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

FDT vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDT First Trust Developed Markets ex-US AlphaDEX Fund	26.09%	52.21%	6.97%	15.03%	-19.51%	11.43%	4.29%	16.82%	-19.98%	34.42%
VEU Vanguard FTSE All-World ex-US ETF	16.58%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	21.83%	-14.18%	27.40%

Correlation

The correlation between FDT and VEU is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Apr 19, 2011	0.91

The correlation between FDT and VEU has been stable across timeframes, ranging from 0.88 to 0.92 - a consistent structural relationship.

FDT vs. VEU - Sectors Allocation Comparison

Sectors	FDT	VEU
Industrials	32.4%	15.0%
Technology	12.1%	21.6%
Consumer Cyclical	11.9%	8.0%
Financial Services	9.9%	22.6%
Basic Materials	9.4%	7.1%
Energy	7.9%	4.7%
Real Estate	5.0%	1.9%
Utilities	4.8%	3.0%
Communication Services	2.8%	4.5%
Consumer Defensive	2.5%	4.9%
Healthcare	1.3%	6.7%

Return for Risk

FDT vs. VEU — 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: 83
FDT Omega Ratio Rank: 86
FDT Calmar Ratio Rank: 81
FDT Martin Ratio Rank: 80

VEU

VEU Risk / Return Rank: 68
VEU Sharpe Ratio Rank: 70
VEU Sortino Ratio Rank: 68
VEU Omega Ratio Rank: 71
VEU Calmar Ratio Rank: 64
VEU 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.

FDT vs. VEU - 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 Vanguard FTSE All-World ex-US ETF (VEU). 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	VEU	Difference
Sharpe ratio: Return per unit of total volatility	2.77	2.19	+0.58
Sortino ratio: Return per unit of downside risk	3.53	2.98	+0.55
Omega ratio: Gain probability vs. loss probability	1.50	1.40	+0.10
Calmar ratio: Return relative to maximum drawdown	4.07	3.10	+0.97
Martin ratio: Return relative to average drawdown	15.38	11.87	+3.51

FDT vs. VEU - Sharpe Ratio Comparison

The current FDT Sharpe Ratio is 2.77, which is comparable to the VEU Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of FDT and VEU, 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. VEU - Drawdown Comparison

The maximum FDT drawdown since its inception was -46.10%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for FDT and VEU.

Drawdown Indicators

	FDT	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-46.10%	-61.52%	+15.42%
Max Drawdown (1Y) Largest decline over 1 year	-13.41%	-11.43%	-1.98%
Max Drawdown (3Y) Largest decline over 3 years	-14.29%	-13.69%	-0.60%
Max Drawdown (5Y) Largest decline over 5 years	-32.80%	-29.14%	-3.66%
Max Drawdown (10Y) Largest decline over 10 years	-46.10%	-34.98%	-11.12%
Current Drawdown Current decline from peak	-1.13%	0.00%	-1.13%
Average Drawdown Average peak-to-trough decline	-10.75%	-13.10%	+2.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.54%	2.97%	+0.57%

Volatility

FDT vs. VEU - Volatility Comparison

First Trust Developed Markets ex-US AlphaDEX Fund (FDT) has a higher volatility of 8.64% compared to Vanguard FTSE All-World ex-US ETF (VEU) at 6.30%. This indicates that FDT's price experiences larger fluctuations and is considered to be riskier than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDT	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.64%	6.30%	+2.34%
Volatility (6M) Calculated over the trailing 6-month period	17.40%	14.12%	+3.28%
Volatility (1Y) Calculated over the trailing 1-year period	19.71%	16.16%	+3.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.47%	16.24%	+2.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.62%	17.23%	+1.39%

FDT vs. VEU - Expense Ratio Comparison

FDT has a 0.80% expense ratio, which is higher than VEU's 0.04% expense ratio.

Dividends

FDT vs. VEU - Dividend Comparison

FDT's dividend yield for the trailing twelve months is around 2.82%, more than VEU's 2.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDT First Trust Developed Markets ex-US AlphaDEX Fund	2.82%	3.27%	3.89%	4.36%	2.29%	3.80%	2.42%	2.78%	2.13%	1.57%	1.76%	1.83%
VEU Vanguard FTSE All-World ex-US ETF	2.48%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both FDT and VEU in my portfolio?

With a correlation of 0.91, FDT and VEU move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FDT or VEU?

FDT has higher volatility (8.64%) compared to VEU (6.30%). In terms of maximum drawdown, FDT dropped -46.10% vs VEU's -61.52%.

Which ETF is better, FDT or VEU?

On 10-year performance, FDT leads with 11.64% vs 10.74% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 6.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDT or VEU?

Over the 10-year period, FDT has performed better with a 11.64% return vs 10.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDT or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.80% for FDT.

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

FDT has the higher dividend yield at 2.82%, compared with 2.48% for VEU.

What is the main difference between FDT and VEU?

FDT tracks NASDAQ AlphaDEX DM Ex-US Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.80% for FDT and 0.04% for VEU.

Which has better risk-adjusted returns?

FDT currently has the higher Sharpe Ratio (2.77 vs 2.19), 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.