FDTS vs. HSCZ

Last updated Jun 24, 2026

FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) and HSCZ (iShares Currency Hedged MSCI EAFE Small Cap ETF) are both Foreign Small & Mid Cap Equities funds - FDTS tracks the NASDAQ AlphaDEX DM Ex-US Small Cap Index while HSCZ tracks the MSCI EAFE Small-Cap 100% Hedged to USD Index. Both are passively managed. Over the past 10 years, FDTS returned 10.51%/yr vs 12.54%/yr for HSCZ. A 0.52 correlation means they provide meaningful diversification when combined. FDTS charges 0.80%/yr vs 0.43%/yr for HSCZ.

Performance

FDTS vs. HSCZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) and iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDTS achieves a 12.44% return, which is significantly higher than HSCZ's 10.35% return. Over the past 10 years, FDTS has underperformed HSCZ with an annualized return of 10.51%, while HSCZ has yielded a comparatively higher 12.54% annualized return.

FDTS

• 1D: -3.77%
• 1M: -6.39%
• YTD: 12.44%
• 6M: 12.40%
• 1Y: 36.22%
• 3Y*: 23.84%
• 5Y*: 9.93%
• 10Y*: 10.51%

HSCZ

• 1D: -1.36%
• 1M: -0.07%
• YTD: 10.35%
• 6M: 10.73%
• 1Y: 27.70%
• 3Y*: 19.25%
• 5Y*: 11.06%
• 10Y*: 12.54%

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

FDTS vs. HSCZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	12.44%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	18.71%	-23.71%	36.01%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	10.35%	25.74%	12.89%	17.03%	-11.46%	17.75%	6.40%	27.89%	-13.99%	24.52%

Correlation

The correlation between FDTS and HSCZ is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Jul 14, 2015	0.52

Over the past year, FDTS and HSCZ have become more correlated (0.74) than their long-term average of 0.52, meaning their price movements have been converging.

FDTS vs. HSCZ - Sectors Allocation Comparison

Sectors	FDTS	HSCZ
Industrials	22.2%	22.8%
Consumer Cyclical	18.9%	9.9%
Technology	14.1%	11.5%
Financial Services	11.9%	15.8%
Basic Materials	11.3%	10.3%
Consumer Defensive	4.7%	3.1%
Real Estate	4.3%	10.4%
Energy	4.0%	4.2%
Communication Services	3.2%	3.1%
Healthcare	2.8%	3.7%
Utilities	2.7%	2.2%

Return for Risk

FDTS vs. HSCZ — Risk / Return Rank

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

FDTS

FDTS Risk / Return Rank: 60
FDTS Sharpe Ratio Rank: 63
FDTS Sortino Ratio Rank: 59
FDTS Omega Ratio Rank: 62
FDTS Calmar Ratio Rank: 62
FDTS Martin Ratio Rank: 57

HSCZ

HSCZ Risk / Return Rank: 75
HSCZ Sharpe Ratio Rank: 80
HSCZ Sortino Ratio Rank: 81
HSCZ Omega Ratio Rank: 80
HSCZ Calmar Ratio Rank: 62
HSCZ Martin Ratio Rank: 71

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.

FDTS vs. HSCZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) and iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ). 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.

	FDTS	HSCZ	Difference
Sharpe ratio: Return per unit of total volatility	1.95	2.39	-0.44
Sortino ratio: Return per unit of downside risk	2.62	3.35	-0.73
Omega ratio: Gain probability vs. loss probability	1.35	1.44	-0.09
Calmar ratio: Return relative to maximum drawdown	2.89	2.90	-0.01
Martin ratio: Return relative to average drawdown	9.60	12.32	-2.71

FDTS vs. HSCZ - Sharpe Ratio Comparison

The current FDTS Sharpe Ratio is 1.95, which is comparable to the HSCZ Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of FDTS and HSCZ, 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

FDTS vs. HSCZ - Drawdown Comparison

The maximum FDTS drawdown since its inception was -51.26%, which is greater than HSCZ's maximum drawdown of -34.89%. Use the drawdown chart below to compare losses from any high point for FDTS and HSCZ.

Drawdown Indicators

	FDTS	HSCZ	Difference
Max Drawdown Largest peak-to-trough decline	-51.26%	-34.89%	-16.37%
Max Drawdown (1Y) Largest decline over 1 year	-12.61%	-9.61%	-3.00%
Max Drawdown (3Y) Largest decline over 3 years	-13.19%	-12.81%	-0.38%
Max Drawdown (5Y) Largest decline over 5 years	-33.11%	-20.11%	-13.00%
Max Drawdown (10Y) Largest decline over 10 years	-51.26%	-34.89%	-16.37%
Current Drawdown Current decline from peak	-9.86%	-1.36%	-8.50%
Average Drawdown Average peak-to-trough decline	-10.64%	-4.64%	-6.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.78%	2.25%	+1.53%

Volatility

FDTS vs. HSCZ - Volatility Comparison

First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) has a higher volatility of 9.16% compared to iShares Currency Hedged MSCI EAFE Small Cap ETF (HSCZ) at 3.94%. This indicates that FDTS's price experiences larger fluctuations and is considered to be riskier than HSCZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDTS	HSCZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.16%	3.94%	+5.22%
Volatility (6M) Calculated over the trailing 6-month period	16.13%	9.76%	+6.37%
Volatility (1Y) Calculated over the trailing 1-year period	18.63%	11.64%	+6.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.47%	13.52%	+15.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.85%	15.47%	+9.38%

FDTS vs. HSCZ - Expense Ratio Comparison

FDTS has a 0.80% expense ratio, which is higher than HSCZ's 0.43% expense ratio.

Dividends

FDTS vs. HSCZ - Dividend Comparison

FDTS's dividend yield for the trailing twelve months is around 2.67%, less than HSCZ's 2.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	2.67%	2.94%	3.94%	2.90%	3.71%	3.01%	2.02%	2.30%	1.96%	2.08%	1.78%	1.73%
HSCZ iShares Currency Hedged MSCI EAFE Small Cap ETF	2.95%	3.25%	3.26%	2.98%	26.91%	2.90%	1.46%	4.66%	6.15%	2.52%	2.57%	1.75%

Frequently Asked Questions

Can I hold both FDTS and HSCZ in my portfolio?

FDTS and HSCZ have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDTS or HSCZ?

FDTS has higher volatility (9.16%) compared to HSCZ (3.94%). In terms of maximum drawdown, FDTS dropped -51.26% vs HSCZ's -34.89%.

Which ETF is better, FDTS or HSCZ?

On 10-year performance, HSCZ leads with 12.54% vs 10.51% for FDTS. On fees, HSCZ is cheaper at 0.43% per year. On volatility, HSCZ has been the lower-risk option at 3.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDTS or HSCZ?

Over the 10-year period, HSCZ has performed better with a 12.54% return vs 10.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDTS or HSCZ?

HSCZ is cheaper with a 0.43% expense ratio, compared with 0.80% for FDTS.

Which ETF pays a higher dividend yield, FDTS or HSCZ?

HSCZ has the higher dividend yield at 2.95%, compared with 2.67% for FDTS.

What is the main difference between FDTS and HSCZ?

FDTS tracks NASDAQ AlphaDEX DM Ex-US Small Cap Index, while HSCZ tracks MSCI EAFE Small-Cap 100% Hedged to USD Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.80% for FDTS and 0.43% for HSCZ.

Which has better risk-adjusted returns?

HSCZ currently has the higher Sharpe Ratio (2.39 vs 1.95), 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.