FIW vs. FDL

Last updated Jun 4, 2026

FIW (First Trust Water ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - FIW is a Water Equities fund tracking the ISE Clean Edge Water Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, FIW returned 12.18%/yr vs 11.24%/yr for FDL. A 0.70 correlation means they provide meaningful diversification when combined. FIW charges 0.54%/yr vs 0.45%/yr for FDL.

Performance

FIW vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Water ETF (FIW) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FIW achieves a -3.78% return, which is significantly lower than FDL's 13.33% return. Over the past 10 years, FIW has outperformed FDL with an annualized return of 12.18%, while FDL has yielded a comparatively lower 11.24% annualized return.

FIW

• 1D: 0.28%
• 1M: -0.84%
• YTD: -3.78%
• 6M: -6.34%
• 1Y: -2.02%
• 3Y*: 7.84%
• 5Y*: 5.36%
• 10Y*: 12.18%

FDL

• 1D: -0.26%
• 1M: -0.26%
• YTD: 13.33%
• 6M: 14.76%
• 1Y: 23.67%
• 3Y*: 18.97%
• 5Y*: 12.51%
• 10Y*: 11.24%

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

FIW vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FIW First Trust Water ETF	-3.78%	7.20%	8.38%	20.35%	-15.70%	32.00%	21.15%	37.37%	-9.23%	24.69%
FDL First Trust Morningstar Dividend Leaders Index Fund	13.33%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between FIW and FDL is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.64
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since May 14, 2007	0.70

Over the past year, the correlation between FIW and FDL has dropped to 0.46 - well below their long-term average of 0.70, suggesting their price drivers have been diverging.

FIW vs. FDL - Sectors Allocation Comparison

Sectors	FIW	FDL
Industrials	54.1%	3.8%
Utilities	16.2%	6.5%
Healthcare	8.1%	16.8%
Technology	8.1%	1.1%
Basic Materials	5.4%	0.3%
Consumer Cyclical	2.7%	3.8%
Consumer Defensive	2.7%	14.7%
Communication Services	-	10.6%
Energy	-	27.3%
Financial Services	-	15.1%
Real Estate	-	-

Return for Risk

FIW vs. FDL — Risk / Return Rank

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

FIW

FIW Risk / Return Rank: 7
FIW Sharpe Ratio Rank: 7
FIW Sortino Ratio Rank: 7
FIW Omega Ratio Rank: 7
FIW Calmar Ratio Rank: 7
FIW Martin Ratio Rank: 7

FDL

FDL Risk / Return Rank: 70
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 70
FDL Omega Ratio Rank: 59
FDL Calmar Ratio Rank: 90
FDL 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.

FIW vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Water ETF (FIW) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	FIW	FDL	Difference
Sharpe ratio: Return per unit of total volatility	-0.13	2.11	-2.24
Sortino ratio: Return per unit of downside risk	-0.08	3.25	-3.34
Omega ratio: Gain probability vs. loss probability	0.99	1.37	-0.38
Calmar ratio: Return relative to maximum drawdown	-0.15	5.56	-5.71
Martin ratio: Return relative to average drawdown	-0.38	13.56	-13.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FIW vs. FDL - Sharpe Ratio Comparison

The current FIW Sharpe Ratio is -0.13, which is lower than the FDL Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of FIW and FDL, 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

	FIW	FDL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.13	2.11	-2.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.29	0.88	-0.59
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.66	-0.05
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.45	-0.02

Drawdowns

FIW vs. FDL - Drawdown Comparison

The maximum FIW drawdown since its inception was -52.75%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for FIW and FDL.

Drawdown Indicators

	FIW	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-52.75%	-65.93%	+13.18%
Max Drawdown (1Y) Largest decline over 1 year	-13.81%	-4.27%	-9.54%
Max Drawdown (3Y) Largest decline over 3 years	-18.32%	-12.24%	-6.08%
Max Drawdown (5Y) Largest decline over 5 years	-28.53%	-16.46%	-12.07%
Max Drawdown (10Y) Largest decline over 10 years	-36.60%	-41.40%	+4.80%
Current Drawdown Current decline from peak	-9.76%	-2.18%	-7.58%
Average Drawdown Average peak-to-trough decline	-8.30%	-9.66%	+1.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.33%	1.75%	+3.58%

Volatility

FIW vs. FDL - Volatility Comparison

First Trust Water ETF (FIW) has a higher volatility of 4.45% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 2.85%. This indicates that FIW's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FIW	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.45%	2.85%	+1.60%
Volatility (6M) Calculated over the trailing 6-month period	11.42%	7.87%	+3.55%
Volatility (1Y) Calculated over the trailing 1-year period	15.50%	11.28%	+4.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	14.31%	+4.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.90%	17.11%	+2.79%

FIW vs. FDL - Expense Ratio Comparison

FIW has a 0.54% expense ratio, which is higher than FDL's 0.45% expense ratio.

Dividends

FIW vs. FDL - Dividend Comparison

FIW's dividend yield for the trailing twelve months is around 0.79%, less than FDL's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.68%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
FIW First Trust Water ETF	0.79%	0.69%	0.69%	0.68%	0.67%	0.37%	0.56%	0.55%	0.73%	1.13%	0.51%	0.76%

Frequently Asked Questions

Can I hold both FIW and FDL in my portfolio?

FIW and FDL have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FIW or FDL?

FIW has higher volatility (4.45%) compared to FDL (2.85%). In terms of maximum drawdown, FIW dropped -52.75% vs FDL's -65.93%.

Which ETF is better, FIW or FDL?

On 10-year performance, FIW leads with 12.18% vs 11.24% for FDL. On fees, FDL is cheaper at 0.45% per year. On volatility, FDL has been the lower-risk option at 2.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FIW or FDL?

Over the 10-year period, FIW has performed better with a 12.18% return vs 11.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FIW or FDL?

FDL is cheaper with a 0.45% expense ratio, compared with 0.54% for FIW.

Which ETF pays a higher dividend yield, FIW or FDL?

FDL has the higher dividend yield at 3.68%, compared with 0.79% for FIW.

What is the main difference between FIW and FDL?

FIW is categorized as Water Equities, while FDL is Large Cap Value Equities. FIW tracks ISE Clean Edge Water Index, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.54% for FIW and 0.45% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.11 vs -0.13), 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.