FKU vs. FEP

Last updated Jun 5, 2026

FKU (First Trust United Kingdom AlphaDEX Fund) and FEP (First Trust Europe AlphaDEX Fund) are both Europe Equities funds from First Trust - FKU tracks the NASDAQ AlphaDEX United Kingdom Index while FEP tracks the Defined Europe Index. Both are passively managed. Over the past 10 years, FKU returned 7.12%/yr vs 10.33%/yr for FEP. A 0.75 correlation means they provide meaningful diversification when combined. Both charge a 0.80% expense ratio.

Performance

FKU vs. FEP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust United Kingdom AlphaDEX Fund (FKU) and First Trust Europe AlphaDEX Fund (FEP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FKU achieves a 6.49% return, which is significantly lower than FEP's 10.92% return. Over the past 10 years, FKU has underperformed FEP with an annualized return of 7.12%, while FEP has yielded a comparatively higher 10.33% annualized return.

FKU

• 1D: 1.18%
• 1M: 2.77%
• YTD: 6.49%
• 6M: 12.08%
• 1Y: 21.04%
• 3Y*: 21.42%
• 5Y*: 7.43%
• 10Y*: 7.12%

FEP

• 1D: 0.85%
• 1M: 2.08%
• YTD: 10.92%
• 6M: 15.74%
• 1Y: 31.01%
• 3Y*: 25.34%
• 5Y*: 9.59%
• 10Y*: 10.33%

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

FKU vs. FEP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FKU First Trust United Kingdom AlphaDEX Fund	6.49%	37.97%	8.06%	20.59%	-24.12%	20.55%	-6.01%	32.90%	-16.21%	25.81%
FEP First Trust Europe AlphaDEX Fund	10.92%	55.72%	3.38%	16.85%	-22.97%	17.03%	4.12%	24.83%	-19.00%	36.27%

Correlation

The correlation between FKU and FEP is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Feb 28, 2012	0.75

The correlation between FKU and FEP shifts across timeframes, from 0.75 (all time) to 0.85 (1 year), reflecting how their relationship changes across market environments.

FKU vs. FEP - Sectors Allocation Comparison

Sectors	FKU	FEP
Financial Services	27.7%	9.8%
Basic Materials	17.8%	11.3%
Consumer Cyclical	13.2%	10.7%
Industrials	11.4%	25.4%
Communication Services	7.2%	3.7%
Consumer Defensive	6.7%	8.1%
Healthcare	5.3%	4.8%
Energy	4.0%	11.0%
Real Estate	4.0%	5.2%
Utilities	2.7%	7.1%
Technology	-	3.0%

Return for Risk

FKU vs. FEP — Risk / Return Rank

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

FKU

FKU Risk / Return Rank: 33
FKU Sharpe Ratio Rank: 34
FKU Sortino Ratio Rank: 34
FKU Omega Ratio Rank: 34
FKU Calmar Ratio Rank: 31
FKU Martin Ratio Rank: 33

FEP

FEP Risk / Return Rank: 55
FEP Sharpe Ratio Rank: 55
FEP Sortino Ratio Rank: 54
FEP Omega Ratio Rank: 54
FEP Calmar Ratio Rank: 53
FEP Martin Ratio Rank: 57

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.

FKU vs. FEP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust United Kingdom AlphaDEX Fund (FKU) and First Trust Europe AlphaDEX Fund (FEP). 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.

	FKU	FEP	Difference
Sharpe ratio: Return per unit of total volatility	1.21	1.86	-0.65
Sortino ratio: Return per unit of downside risk	1.77	2.54	-0.76
Omega ratio: Gain probability vs. loss probability	1.22	1.33	-0.11
Calmar ratio: Return relative to maximum drawdown	1.48	2.57	-1.09
Martin ratio: Return relative to average drawdown	4.99	9.98	-4.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FKU vs. FEP - Sharpe Ratio Comparison

The current FKU Sharpe Ratio is 1.21, which is lower than the FEP Sharpe Ratio of 1.86. The chart below compares the historical Sharpe Ratios of FKU and FEP, 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

	FKU	FEP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.21	1.86	-0.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.49	-0.16
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	0.50	-0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.34	-0.01

Drawdowns

FKU vs. FEP - Drawdown Comparison

The maximum FKU drawdown since its inception was -54.39%, which is greater than FEP's maximum drawdown of -46.05%. Use the drawdown chart below to compare losses from any high point for FKU and FEP.

Drawdown Indicators

	FKU	FEP	Difference
Max Drawdown Largest peak-to-trough decline	-54.39%	-46.05%	-8.34%
Max Drawdown (1Y) Largest decline over 1 year	-14.25%	-12.13%	-2.12%
Max Drawdown (3Y) Largest decline over 3 years	-14.25%	-15.83%	+1.58%
Max Drawdown (5Y) Largest decline over 5 years	-41.75%	-38.99%	-2.76%
Max Drawdown (10Y) Largest decline over 10 years	-54.39%	-46.05%	-8.34%
Current Drawdown Current decline from peak	-4.43%	-0.63%	-3.80%
Average Drawdown Average peak-to-trough decline	-10.81%	-12.02%	+1.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.23%	3.12%	+1.11%

Volatility

FKU vs. FEP - Volatility Comparison

First Trust United Kingdom AlphaDEX Fund (FKU) has a higher volatility of 6.21% compared to First Trust Europe AlphaDEX Fund (FEP) at 5.51%. This indicates that FKU's price experiences larger fluctuations and is considered to be riskier than FEP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FKU	FEP	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.21%	5.51%	+0.70%
Volatility (6M) Calculated over the trailing 6-month period	14.75%	13.96%	+0.79%
Volatility (1Y) Calculated over the trailing 1-year period	17.43%	16.73%	+0.70%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.90%	19.67%	+3.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.43%	20.73%	+3.70%

FKU vs. FEP - Expense Ratio Comparison

Both FKU and FEP have an expense ratio of 0.80%.

Dividends

FKU vs. FEP - Dividend Comparison

FKU's dividend yield for the trailing twelve months is around 2.71%, less than FEP's 2.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FEP First Trust Europe AlphaDEX Fund	2.95%	3.33%	4.94%	3.27%	3.00%	3.49%	2.32%	2.63%	2.62%	1.65%	2.14%	2.20%
FKU First Trust United Kingdom AlphaDEX Fund	2.71%	2.89%	4.07%	3.82%	5.55%	2.98%	1.48%	3.34%	5.12%	2.93%	2.60%	2.64%

Frequently Asked Questions

Can I hold both FKU and FEP in my portfolio?

FKU and FEP have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FKU or FEP?

FKU has higher volatility (6.21%) compared to FEP (5.51%). In terms of maximum drawdown, FKU dropped -54.39% vs FEP's -46.05%.

Which ETF is better, FKU or FEP?

On 10-year performance, FEP leads with 10.33% vs 7.12% for FKU. Both ETFs have the same 0.80% expense ratio. On volatility, FEP has been the lower-risk option at 5.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FKU or FEP?

Over the 10-year period, FEP has performed better with a 10.33% return vs 7.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FKU or FEP?

FKU and FEP have the same expense ratio: 0.80% per year.

Which ETF pays a higher dividend yield, FKU or FEP?

FEP has the higher dividend yield at 2.95%, compared with 2.71% for FKU.

What is the main difference between FKU and FEP?

FKU tracks NASDAQ AlphaDEX United Kingdom Index, while FEP tracks Defined Europe Index.

Which has better risk-adjusted returns?

FEP currently has the higher Sharpe Ratio (1.86 vs 1.21), 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.