FEX vs. GARP

Last updated Jun 4, 2026

FEX (First Trust Large Cap Core AlphaDEX Fund) and GARP (iShares MSCI USA Quality GARP ETF) are both exchange-traded funds - FEX is a Large Cap Blend Equities fund tracking the Nasdaq AlphaDEX Large Cap Core Index, while GARP is a Large Cap Growth Equities fund tracking the MSCI USA Quality GARP Select Index. Both are passively managed. Over the past 5 years, FEX returned 11.10%/yr vs 20.26%/yr for GARP. A 0.77 correlation means they provide meaningful diversification when combined. FEX charges 0.57%/yr vs 0.15%/yr for GARP.

Performance

FEX vs. GARP - Performance Comparison

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

Returns By Period

In the year-to-date period, FEX achieves a 15.12% return, which is significantly lower than GARP's 21.29% return.

FEX

• 1D: -0.19%
• 1M: 5.13%
• YTD: 15.12%
• 6M: 15.57%
• 1Y: 29.38%
• 3Y*: 20.78%
• 5Y*: 11.10%
• 10Y*: 13.11%

GARP

• 1D: -0.72%
• 1M: 11.92%
• YTD: 21.29%
• 6M: 21.80%
• 1Y: 43.57%
• 3Y*: 33.60%
• 5Y*: 20.26%
• 10Y*: —

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

FEX vs. GARP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FEX First Trust Large Cap Core AlphaDEX Fund	15.12%	15.05%	17.07%	14.31%	-11.86%	26.83%	11.90%
GARP iShares MSCI USA Quality GARP ETF	21.29%	21.49%	37.42%	42.86%	-26.75%	27.99%	26.51%

Correlation

The correlation between FEX and GARP is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Jan 17, 2020	0.77

The correlation between FEX and GARP has been stable across timeframes, ranging from 0.73 to 0.80 - a consistent structural relationship.

FEX vs. GARP - Sectors Allocation Comparison

Sectors	FEX	GARP
Industrials	19.4%	6.9%
Technology	18.8%	56.7%
Financial Services	14.3%	7.5%
Healthcare	8.9%	5.4%
Consumer Cyclical	8.5%	6.1%
Utilities	7.5%	1.4%
Energy	6.3%	2.7%
Real Estate	4.7%	0.4%
Consumer Defensive	4.5%	-
Communication Services	3.6%	12.0%
Basic Materials	3.5%	0.9%

Return for Risk

FEX vs. GARP — Risk / Return Rank

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

FEX

FEX Risk / Return Rank: 76
FEX Sharpe Ratio Rank: 72
FEX Sortino Ratio Rank: 72
FEX Omega Ratio Rank: 69
FEX Calmar Ratio Rank: 85
FEX Martin Ratio Rank: 84

GARP

GARP Risk / Return Rank: 68
GARP Sharpe Ratio Rank: 73
GARP Sortino Ratio Rank: 68
GARP Omega Ratio Rank: 67
GARP Calmar Ratio Rank: 63
GARP Martin Ratio Rank: 68

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.

FEX vs. GARP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Large Cap Core AlphaDEX Fund (FEX) and iShares MSCI USA Quality GARP ETF (GARP). 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.

	FEX	GARP	Difference
Sharpe ratio: Return per unit of total volatility	2.36	2.45	-0.09
Sortino ratio: Return per unit of downside risk	3.28	3.18	+0.10
Omega ratio: Gain probability vs. loss probability	1.41	1.41	0.00
Calmar ratio: Return relative to maximum drawdown	4.74	3.20	+1.54
Martin ratio: Return relative to average drawdown	17.27	12.85	+4.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FEX vs. GARP - Sharpe Ratio Comparison

The current FEX Sharpe Ratio is 2.36, which is comparable to the GARP Sharpe Ratio of 2.45. The chart below compares the historical Sharpe Ratios of FEX and GARP, 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

	FEX	GARP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.36	2.45	-0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.93	-0.25
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.71	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.48	0.90	-0.42

Drawdowns

FEX vs. GARP - Drawdown Comparison

The maximum FEX drawdown since its inception was -58.81%, which is greater than GARP's maximum drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for FEX and GARP.

Drawdown Indicators

	FEX	GARP	Difference
Max Drawdown Largest peak-to-trough decline	-58.81%	-31.34%	-27.47%
Max Drawdown (1Y) Largest decline over 1 year	-6.23%	-13.69%	+7.46%
Max Drawdown (3Y) Largest decline over 3 years	-19.58%	-23.73%	+4.15%
Max Drawdown (5Y) Largest decline over 5 years	-21.27%	-30.61%	+9.34%
Max Drawdown (10Y) Largest decline over 10 years	-39.51%	—	—
Current Drawdown Current decline from peak	-0.19%	-0.73%	+0.54%
Average Drawdown Average peak-to-trough decline	-7.89%	-7.36%	-0.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.71%	3.40%	-1.69%

Volatility

FEX vs. GARP - Volatility Comparison

The current volatility for First Trust Large Cap Core AlphaDEX Fund (FEX) is 3.98%, while iShares MSCI USA Quality GARP ETF (GARP) has a volatility of 5.03%. This indicates that FEX experiences smaller price fluctuations and is considered to be less risky than GARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEX	GARP	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.98%	5.03%	-1.05%
Volatility (6M) Calculated over the trailing 6-month period	9.17%	13.89%	-4.72%
Volatility (1Y) Calculated over the trailing 1-year period	12.51%	17.89%	-5.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.47%	21.97%	-5.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.59%	23.89%	-5.30%

FEX vs. GARP - Expense Ratio Comparison

FEX has a 0.57% expense ratio, which is higher than GARP's 0.15% expense ratio.

Dividends

FEX vs. GARP - Dividend Comparison

FEX's dividend yield for the trailing twelve months is around 0.95%, more than GARP's 0.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEX First Trust Large Cap Core AlphaDEX Fund	0.95%	1.10%	1.18%	1.38%	1.61%	0.80%	1.21%	1.32%	1.34%	1.07%	1.29%	1.33%
GARP iShares MSCI USA Quality GARP ETF	0.25%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FEX and GARP in my portfolio?

FEX and GARP have a correlation of 0.73, 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 GARP?

GARP has higher volatility (5.03%) compared to FEX (3.98%). In terms of maximum drawdown, FEX dropped -58.81% vs GARP's -31.34%.

Which ETF is better, FEX or GARP?

On 5-year performance, GARP leads with 20.26% vs 11.10% for FEX. On fees, GARP is cheaper at 0.15% per year. On volatility, FEX has been the lower-risk option at 3.98%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEX or GARP?

Over the 5-year period, GARP has performed better with a 20.26% return vs 11.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEX or GARP?

GARP is cheaper with a 0.15% expense ratio, compared with 0.57% for FEX.

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

FEX has the higher dividend yield at 0.95%, compared with 0.25% for GARP.

What is the main difference between FEX and GARP?

FEX is categorized as Large Cap Blend Equities, while GARP is Large Cap Growth Equities. FEX tracks Nasdaq AlphaDEX Large Cap Core Index, while GARP tracks MSCI USA Quality GARP Select Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.57% for FEX and 0.15% for GARP.

Which has better risk-adjusted returns?

GARP currently has the higher Sharpe Ratio (2.45 vs 2.36), 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.