FEX vs. ESN

Last updated Aug 4, 2026

FEX (First Trust Large Cap Core AlphaDEX Fund) and ESN (Essential 40 Stock ETF) are both Large Cap Blend Equities funds - FEX tracks the Nasdaq AlphaDEX Large Cap Core Index while ESN tracks the Essential 40 Stock Index. Both are passively managed. Over the past year, FEX returned 26.18% vs 28.79% for ESN. Their correlation of 0.82 means they have usually moved in the same direction. FEX charges 0.57%/yr vs 0.70%/yr for ESN.

Performance

FEX vs. ESN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Large Cap Core AlphaDEX Fund (FEX) and Essential 40 Stock ETF (ESN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEX achieves a 16.59% return, which is significantly lower than ESN's 17.69% return.

FEX

• 1D: 1.03%
• 1M: 0.43%
• 6M: 11.73%
• YTD: 16.59%
• 1Y: 26.18%
• 3Y*: 18.57%
• 5Y*: 10.92%
• 10Y*: 12.82%
• ALL TIME*: 9.64%

ESN

• 1D: 0.90%
• 1M: 0.63%
• 6M: 12.36%
• YTD: 17.69%
• 1Y: 28.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 17.00%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ESN Essential 40 Stock ETF	$2.27M	$1.62M	$1.62M
FEX First Trust Large Cap Core AlphaDEX Fund	$3.97M	$3.32M	$3.45M

FEX vs. ESN - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FEX First Trust Large Cap Core AlphaDEX Fund	16.59%	15.05%	-1.84%
ESN Essential 40 Stock ETF	17.69%	16.52%	-3.53%

Correlation

The correlation between FEX and ESN is 0.77, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.77
Correlation (All Time) Calculated using the full available price history since Oct 21, 2024	0.82

The correlation between FEX and ESN has been stable across timeframes, ranging from 0.77 to 0.82 - a consistent structural relationship.

Return for Risk

FEX vs. ESN — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FEX

FEX Risk / Return Rank: 84
FEX Sharpe Ratio Rank: 81
FEX Sortino Ratio Rank: 80
FEX Omega Ratio Rank: 78
FEX Calmar Ratio Rank: 91
FEX Martin Ratio Rank: 88

ESN

ESN Risk / Return Rank: 94
ESN Sharpe Ratio Rank: 95
ESN Sortino Ratio Rank: 94
ESN Omega Ratio Rank: 93
ESN Calmar Ratio Rank: 92
ESN Martin Ratio Rank: 93

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FEX vs. ESN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Large Cap Core AlphaDEX Fund (FEX) and Essential 40 Stock ETF (ESN). 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.

	FEX	ESN	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.91	-0.92
Sortino ratio: Return per unit of downside risk	2.77	4.00	-1.23
Omega ratio: Gain probability vs. loss probability	1.35	1.51	-0.16
Calmar ratio: Return relative to maximum drawdown	4.22	4.50	-0.28
Martin ratio: Return relative to average drawdown	14.07	18.06	-4.00

FEX vs. ESN - Sharpe Ratio Comparison

The current FEX Sharpe Ratio is 1.98, which is lower than the ESN Sharpe Ratio of 2.91. The chart below compares the historical Sharpe Ratios of FEX and ESN, 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

FEX vs. ESN - Drawdown Comparison

The maximum FEX drawdown since its inception was -58.81%, which is greater than ESN's maximum drawdown of -13.60%. Use the drawdown chart below to compare losses from any high point for FEX and ESN.

Drawdown Indicators

	FEX	ESN	Difference
Max Drawdown Largest peak-to-trough decline	-58.81%	-13.60%	-45.21%
Max Drawdown (1Y) Largest decline over 1 year	-6.23%	-6.42%	+0.19%
Max Drawdown (3Y) Largest decline over 3 years	-19.58%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-21.27%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-39.51%	—	—
Current Drawdown Current decline from peak	-1.56%	0.00%	-1.56%
Average Drawdown Average peak-to-trough decline	-7.83%	-1.80%	-6.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.87%	1.60%	+0.27%

Volatility

FEX vs. ESN - Volatility Comparison

First Trust Large Cap Core AlphaDEX Fund (FEX) has a higher volatility of 2.89% compared to Essential 40 Stock ETF (ESN) at 2.69%. This indicates that FEX's price experiences larger fluctuations and is considered to be riskier than ESN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEX	ESN	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.89%	2.69%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	10.07%	7.51%	+2.56%
Volatility (1Y) Calculated over the trailing 1-year period	13.28%	9.97%	+3.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.56%	13.04%	+3.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.57%	13.04%	+5.53%

FEX vs. ESN - Expense Ratio Comparison

FEX has a 0.57% expense ratio, which is lower than ESN's 0.70% expense ratio.

Dividends

FEX vs. ESN - Dividend Comparison

FEX's dividend yield for the trailing twelve months is around 0.94%, more than ESN's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESN Essential 40 Stock ETF	0.77%	0.91%	0.76%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FEX First Trust Large Cap Core AlphaDEX Fund	0.94%	1.10%	1.18%	1.38%	1.61%	0.80%	1.21%	1.32%	1.34%	1.07%	1.29%	1.33%

Frequently Asked Questions

Can I hold both FEX and ESN in my portfolio?

FEX and ESN have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEX or ESN?

FEX has higher volatility (2.89%) compared to ESN (2.69%). In terms of maximum drawdown, FEX dropped -58.81% vs ESN's -13.60%.

Which ETF is better, FEX or ESN?

On 1-year performance, ESN leads with 28.79% vs 26.18% for FEX. On fees, FEX is cheaper at 0.57% per year. On volatility, ESN has been the lower-risk option at 2.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEX or ESN?

Over the 1-year period, ESN has performed better with a 28.79% return vs 26.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEX or ESN?

FEX is cheaper with a 0.57% expense ratio, compared with 0.70% for ESN.

Which ETF pays a higher dividend yield, FEX or ESN?

FEX has the higher dividend yield at 0.94%, compared with 0.77% for ESN.

What is the main difference between FEX and ESN?

FEX tracks Nasdaq AlphaDEX Large Cap Core Index, while ESN tracks Essential 40 Stock Index. They also come from different issuers: First Trust and KKM. Their fees differ too: 0.57% for FEX and 0.70% for ESN.

Which has better risk-adjusted returns?

ESN currently has the higher Sharpe Ratio (2.91 vs 1.98), 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.