FDTS vs. VSS

Last updated Jun 4, 2026

FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both Foreign Small & Mid Cap Equities funds - FDTS tracks the NASDAQ AlphaDEX DM Ex-US Small Cap Index while VSS tracks the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, FDTS returned 10.50%/yr vs 8.07%/yr for VSS. A 0.58 correlation means they provide meaningful diversification when combined. FDTS charges 0.80%/yr vs 0.07%/yr for VSS.

Performance

FDTS vs. VSS - 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 All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDTS achieves a 16.64% return, which is significantly higher than VSS's 10.57% return. Over the past 10 years, FDTS has outperformed VSS with an annualized return of 10.50%, while VSS has yielded a comparatively lower 8.07% annualized return.

FDTS

• 1D: -1.14%
• 1M: -2.48%
• YTD: 16.64%
• 6M: 19.06%
• 1Y: 45.71%
• 3Y*: 25.36%
• 5Y*: 10.59%
• 10Y*: 10.50%

VSS

• 1D: -1.12%
• 1M: 1.27%
• YTD: 10.57%
• 6M: 13.10%
• 1Y: 27.32%
• 3Y*: 16.67%
• 5Y*: 5.76%
• 10Y*: 8.07%

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

FDTS vs. VSS - 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	16.64%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	18.71%	-23.71%	36.01%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.57%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between FDTS and VSS 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	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Feb 17, 2012	0.58

Over the past year, FDTS and VSS have become more correlated (0.91) than their long-term average of 0.58, meaning their price movements have been converging.

FDTS vs. VSS - Sectors Allocation Comparison

Sectors	FDTS	VSS
Industrials	23.0%	18.7%
Consumer Cyclical	18.4%	9.3%
Technology	13.4%	13.3%
Financial Services	11.7%	10.8%
Basic Materials	11.2%	12.1%
Consumer Defensive	5.0%	3.4%
Real Estate	4.3%	7.3%
Energy	4.3%	4.9%
Healthcare	3.0%	6.2%
Communication Services	3.0%	2.3%
Utilities	2.7%	2.5%

Return for Risk

FDTS vs. VSS — Risk / Return Rank

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

FDTS

FDTS Risk / Return Rank: 76
FDTS Sharpe Ratio Rank: 82
FDTS Sortino Ratio Rank: 78
FDTS Omega Ratio Rank: 77
FDTS Calmar Ratio Rank: 73
FDTS Martin Ratio Rank: 71

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 51
VSS Omega Ratio Rank: 54
VSS Calmar Ratio Rank: 47
VSS Martin Ratio Rank: 53

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. VSS - 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 All-World ex-US Small-Cap ETF (VSS). 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.

	FDTS	VSS	Difference
Sharpe ratio: Return per unit of total volatility	2.69	1.85	+0.84
Sortino ratio: Return per unit of downside risk	3.52	2.54	+0.98
Omega ratio: Gain probability vs. loss probability	1.46	1.34	+0.12
Calmar ratio: Return relative to maximum drawdown	3.64	2.36	+1.28
Martin ratio: Return relative to average drawdown	13.32	9.13	+4.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FDTS vs. VSS - Sharpe Ratio Comparison

The current FDTS Sharpe Ratio is 2.69, which is higher than the VSS Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of FDTS and VSS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FDTS	VSS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.69	1.85	+0.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.36	0.35	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.42	0.47	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.55	-0.18

Drawdowns

FDTS vs. VSS - Drawdown Comparison

The maximum FDTS drawdown since its inception was -51.26%, which is greater than VSS's maximum drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for FDTS and VSS.

Drawdown Indicators

	FDTS	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-51.26%	-43.51%	-7.75%
Max Drawdown (1Y) Largest decline over 1 year	-12.61%	-11.62%	-0.99%
Max Drawdown (3Y) Largest decline over 3 years	-13.19%	-15.73%	+2.54%
Max Drawdown (5Y) Largest decline over 5 years	-33.11%	-33.93%	+0.82%
Max Drawdown (10Y) Largest decline over 10 years	-51.26%	-43.51%	-7.75%
Current Drawdown Current decline from peak	-6.49%	-2.58%	-3.91%
Average Drawdown Average peak-to-trough decline	-10.65%	-9.64%	-1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.44%	3.00%	+0.44%

Volatility

FDTS vs. VSS - Volatility Comparison

First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) has a higher volatility of 6.54% compared to Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) at 5.33%. This indicates that FDTS's price experiences larger fluctuations and is considered to be riskier than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDTS	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.54%	5.33%	+1.21%
Volatility (6M) Calculated over the trailing 6-month period	14.09%	12.64%	+1.45%
Volatility (1Y) Calculated over the trailing 1-year period	17.05%	14.81%	+2.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.28%	16.46%	+12.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.85%	17.27%	+7.58%

FDTS vs. VSS - Expense Ratio Comparison

FDTS has a 0.80% expense ratio, which is higher than VSS's 0.07% expense ratio.

Dividends

FDTS vs. VSS - Dividend Comparison

FDTS's dividend yield for the trailing twelve months is around 2.58%, less than VSS's 3.07% 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	2.58%	2.94%	3.94%	2.90%	3.71%	3.01%	2.02%	2.30%	1.96%	2.08%	1.78%	1.73%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.07%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both FDTS and VSS in my portfolio?

With a correlation of 0.91, FDTS and VSS 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, FDTS or VSS?

FDTS has higher volatility (6.54%) compared to VSS (5.33%). In terms of maximum drawdown, FDTS dropped -51.26% vs VSS's -43.51%.

Which ETF is better, FDTS or VSS?

On 10-year performance, FDTS leads with 10.50% vs 8.07% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, VSS has been the lower-risk option at 5.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDTS or VSS?

Over the 10-year period, FDTS has performed better with a 10.50% return vs 8.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDTS or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.80% for FDTS.

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

VSS has the higher dividend yield at 3.07%, compared with 2.58% for FDTS.

What is the main difference between FDTS and VSS?

FDTS tracks NASDAQ AlphaDEX DM Ex-US Small Cap Index, while VSS tracks FTSE Global Small Cap ex US Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.80% for FDTS and 0.07% for VSS.

Which has better risk-adjusted returns?

FDTS currently has the higher Sharpe Ratio (2.69 vs 1.85), 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.