FDTS vs. VEA

Last updated Jun 14, 2026

FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) and VEA (Vanguard FTSE Developed Markets ETF) are both exchange-traded funds - FDTS is a Foreign Small & Mid Cap Equities fund tracking the NASDAQ AlphaDEX DM Ex-US Small Cap Index, while VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index. Both are passively managed. Over the past 10 years, FDTS returned 10.96%/yr vs 10.72%/yr for VEA. A 0.55 correlation means they provide meaningful diversification when combined. FDTS charges 0.80%/yr vs 0.03%/yr for VEA.

Performance

FDTS vs. VEA - 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 Vanguard FTSE Developed Markets ETF (VEA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDTS achieves a 18.78% return, which is significantly higher than VEA's 14.73% return. Both investments have delivered pretty close results over the past 10 years, with FDTS having a 10.96% annualized return and VEA not far behind at 10.72%.

FDTS

• 1D: -0.17%
• 1M: -2.15%
• YTD: 18.78%
• 6M: 20.77%
• 1Y: 44.72%
• 3Y*: 24.70%
• 5Y*: 10.78%
• 10Y*: 10.96%

VEA

• 1D: 0.34%
• 1M: 3.58%
• YTD: 14.73%
• 6M: 16.65%
• 1Y: 31.41%
• 3Y*: 19.03%
• 5Y*: 9.51%
• 10Y*: 10.72%

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

FDTS vs. VEA - 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	18.78%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	18.71%	-23.71%	36.01%
VEA Vanguard FTSE Developed Markets ETF	14.73%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	22.62%	-14.75%	26.42%

Correlation

The correlation between FDTS and VEA is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.62
Correlation (All Time) Calculated using the full available price history since Feb 16, 2012	0.55

Over the past year, FDTS and VEA have become more correlated (0.86) than their long-term average of 0.55, meaning their price movements have been converging.

FDTS vs. VEA - Sectors Allocation Comparison

Sectors	FDTS	VEA
Industrials	22.2%	19.2%
Consumer Cyclical	18.9%	7.5%
Technology	14.1%	13.8%
Financial Services	11.9%	23.3%
Basic Materials	11.3%	7.5%
Consumer Defensive	4.7%	5.6%
Real Estate	4.3%	2.7%
Energy	4.0%	5.4%
Communication Services	3.2%	3.4%
Healthcare	2.8%	8.2%
Utilities	2.7%	3.3%

Return for Risk

FDTS vs. VEA — Risk / Return Rank

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

FDTS

FDTS Risk / Return Rank: 79
FDTS Sharpe Ratio Rank: 84
FDTS Sortino Ratio Rank: 81
FDTS Omega Ratio Rank: 81
FDTS Calmar Ratio Rank: 76
FDTS Martin Ratio Rank: 72

VEA

VEA Risk / Return Rank: 62
VEA Sharpe Ratio Rank: 63
VEA Sortino Ratio Rank: 62
VEA Omega Ratio Rank: 63
VEA Calmar Ratio Rank: 59
VEA Martin Ratio Rank: 63

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. VEA - 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 Vanguard FTSE Developed Markets ETF (VEA). 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	VEA	Difference
Sharpe ratio: Return per unit of total volatility	2.37	1.81	+0.56
Sortino ratio: Return per unit of downside risk	3.15	2.50	+0.64
Omega ratio: Gain probability vs. loss probability	1.42	1.33	+0.09
Calmar ratio: Return relative to maximum drawdown	3.43	2.58	+0.85
Martin ratio: Return relative to average drawdown	11.78	9.92	+1.86

FDTS vs. VEA - Sharpe Ratio Comparison

The current FDTS Sharpe Ratio is 2.37, which is higher than the VEA Sharpe Ratio of 1.81. The chart below compares the historical Sharpe Ratios of FDTS and VEA, 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. VEA - Drawdown Comparison

The maximum FDTS drawdown since its inception was -51.26%, smaller than the maximum VEA drawdown of -60.68%. Use the drawdown chart below to compare losses from any high point for FDTS and VEA.

Drawdown Indicators

	FDTS	VEA	Difference
Max Drawdown Largest peak-to-trough decline	-51.26%	-60.68%	+9.42%
Max Drawdown (1Y) Largest decline over 1 year	-12.61%	-11.63%	-0.98%
Max Drawdown (3Y) Largest decline over 3 years	-13.19%	-13.45%	+0.26%
Max Drawdown (5Y) Largest decline over 5 years	-33.11%	-29.71%	-3.40%
Max Drawdown (10Y) Largest decline over 10 years	-51.26%	-35.73%	-15.53%
Current Drawdown Current decline from peak	-4.77%	-1.06%	-3.71%
Average Drawdown Average peak-to-trough decline	-10.64%	-13.28%	+2.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.66%	3.02%	+0.64%

Volatility

FDTS vs. VEA - Volatility Comparison

First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) has a higher volatility of 8.44% compared to Vanguard FTSE Developed Markets ETF (VEA) at 6.84%. This indicates that FDTS's price experiences larger fluctuations and is considered to be riskier than VEA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDTS	VEA	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.44%	6.84%	+1.60%
Volatility (6M) Calculated over the trailing 6-month period	15.54%	14.38%	+1.16%
Volatility (1Y) Calculated over the trailing 1-year period	18.27%	16.58%	+1.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.42%	16.72%	+12.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.92%	17.40%	+7.52%

FDTS vs. VEA - Expense Ratio Comparison

FDTS has a 0.80% expense ratio, which is higher than VEA's 0.03% expense ratio.

Dividends

FDTS vs. VEA - Dividend Comparison

FDTS's dividend yield for the trailing twelve months is around 2.53%, less than VEA's 2.62% 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	2.53%	2.94%	3.94%	2.90%	3.71%	3.01%	2.02%	2.30%	1.96%	2.08%	1.78%	1.73%
VEA Vanguard FTSE Developed Markets ETF	2.62%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both FDTS and VEA in my portfolio?

FDTS and VEA have a correlation of 0.86, 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 VEA?

FDTS has higher volatility (8.44%) compared to VEA (6.84%). In terms of maximum drawdown, FDTS dropped -51.26% vs VEA's -60.68%.

Which ETF is better, FDTS or VEA?

On 10-year performance, FDTS leads with 10.96% vs 10.72% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 6.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDTS or VEA?

Over the 10-year period, FDTS has performed better with a 10.96% return vs 10.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDTS or VEA?

VEA is cheaper with a 0.03% expense ratio, compared with 0.80% for FDTS.

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

VEA has the higher dividend yield at 2.62%, compared with 2.53% for FDTS.

What is the main difference between FDTS and VEA?

FDTS is categorized as Foreign Small & Mid Cap Equities, while VEA is Foreign Large Cap Equities. FDTS tracks NASDAQ AlphaDEX DM Ex-US Small Cap Index, while VEA tracks FTSE Developed All Cap ex US Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.80% for FDTS and 0.03% for VEA.

Which has better risk-adjusted returns?

FDTS currently has the higher Sharpe Ratio (2.37 vs 1.81), 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.