FLM vs. DGS

Last updated Jun 4, 2026

FLM (First Trust Global Engineering and Construction ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - FLM is a Building & Construction fund tracking the ISE Global Engineering & Construction Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, FLM returned 8.40%/yr vs 9.93%/yr for DGS. A 0.64 correlation means they provide meaningful diversification when combined. FLM charges 0.70%/yr vs 0.58%/yr for DGS.

Performance

FLM vs. DGS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Global Engineering and Construction ETF (FLM) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLM achieves a 19.89% return, which is significantly higher than DGS's 14.53% return. Over the past 10 years, FLM has underperformed DGS with an annualized return of 8.40%, while DGS has yielded a comparatively higher 9.93% annualized return.

FLM

• 1D: -0.36%
• 1M: 0.95%
• YTD: 19.89%
• 6M: 18.51%
• 1Y: 28.68%
• 3Y*: 22.72%
• 5Y*: 10.76%
• 10Y*: 8.40%

DGS

• 1D: -1.37%
• 1M: 2.58%
• YTD: 14.53%
• 6M: 15.57%
• 1Y: 27.26%
• 3Y*: 16.17%
• 5Y*: 7.85%
• 10Y*: 9.93%

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

FLM vs. DGS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLM First Trust Global Engineering and Construction ETF	19.89%	13.99%	17.94%	19.36%	-9.87%	12.98%	0.51%	12.81%	-21.72%	22.95%
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	14.53%	21.18%	1.13%	19.08%	-12.35%	15.33%	4.06%	18.90%	-16.52%	37.47%

Correlation

The correlation between FLM and DGS is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Oct 20, 2008	0.64

The correlation between FLM and DGS has been stable across timeframes, ranging from 0.57 to 0.64 - a consistent structural relationship.

Return for Risk

FLM vs. DGS — Risk / Return Rank

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

FLM

FLM Risk / Return Rank: 68
FLM Sharpe Ratio Rank: 64
FLM Sortino Ratio Rank: 63
FLM Omega Ratio Rank: 60
FLM Calmar Ratio Rank: 79
FLM Martin Ratio Rank: 73

DGS

DGS Risk / Return Rank: 51
DGS Sharpe Ratio Rank: 50
DGS Sortino Ratio Rank: 49
DGS Omega Ratio Rank: 50
DGS Calmar Ratio Rank: 54
DGS 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.

FLM vs. DGS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Global Engineering and Construction ETF (FLM) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.

	FLM	DGS	Difference
Sharpe ratio: Return per unit of total volatility	2.15	1.76	+0.39
Sortino ratio: Return per unit of downside risk	2.93	2.43	+0.50
Omega ratio: Gain probability vs. loss probability	1.37	1.32	+0.05
Calmar ratio: Return relative to maximum drawdown	4.01	2.72	+1.28
Martin ratio: Return relative to average drawdown	13.80	9.16	+4.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLM vs. DGS - Sharpe Ratio Comparison

The current FLM Sharpe Ratio is 2.15, which is comparable to the DGS Sharpe Ratio of 1.76. The chart below compares the historical Sharpe Ratios of FLM and DGS, 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

	FLM	DGS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.15	1.76	+0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.64	0.53	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.58	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.23	+0.15

Drawdowns

FLM vs. DGS - Drawdown Comparison

The maximum FLM drawdown since its inception was -50.07%, smaller than the maximum DGS drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for FLM and DGS.

Drawdown Indicators

	FLM	DGS	Difference
Max Drawdown Largest peak-to-trough decline	-50.07%	-61.83%	+11.76%
Max Drawdown (1Y) Largest decline over 1 year	-7.19%	-10.06%	+2.87%
Max Drawdown (3Y) Largest decline over 3 years	-19.14%	-19.31%	+0.17%
Max Drawdown (5Y) Largest decline over 5 years	-23.71%	-24.86%	+1.15%
Max Drawdown (10Y) Largest decline over 10 years	-50.07%	-44.08%	-5.99%
Current Drawdown Current decline from peak	-0.71%	-1.40%	+0.69%
Average Drawdown Average peak-to-trough decline	-10.84%	-12.59%	+1.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.08%	2.98%	-0.90%

Volatility

FLM vs. DGS - Volatility Comparison

The current volatility for First Trust Global Engineering and Construction ETF (FLM) is 4.27%, while WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) has a volatility of 5.24%. This indicates that FLM experiences smaller price fluctuations and is considered to be less risky than DGS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLM	DGS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.27%	5.24%	-0.97%
Volatility (6M) Calculated over the trailing 6-month period	10.39%	13.03%	-2.64%
Volatility (1Y) Calculated over the trailing 1-year period	13.45%	15.56%	-2.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.82%	14.87%	+1.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.73%	17.32%	+1.41%

FLM vs. DGS - Expense Ratio Comparison

FLM has a 0.70% expense ratio, which is higher than DGS's 0.58% expense ratio.

Dividends

FLM vs. DGS - Dividend Comparison

FLM's dividend yield for the trailing twelve months is around 1.01%, less than DGS's 3.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	3.21%	3.45%	3.36%	4.55%	5.34%	3.98%	3.69%	3.95%	4.24%	2.81%	3.42%	3.28%
FLM First Trust Global Engineering and Construction ETF	1.01%	1.19%	1.31%	1.16%	2.10%	1.45%	2.88%	1.84%	1.74%	1.49%	2.01%	1.17%

Frequently Asked Questions

Can I hold both FLM and DGS in my portfolio?

FLM and DGS have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FLM or DGS?

DGS has higher volatility (5.24%) compared to FLM (4.27%). In terms of maximum drawdown, FLM dropped -50.07% vs DGS's -61.83%.

Which ETF is better, FLM or DGS?

On 10-year performance, DGS leads with 9.93% vs 8.40% for FLM. On fees, DGS is cheaper at 0.58% per year. On volatility, FLM has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLM or DGS?

Over the 10-year period, DGS has performed better with a 9.93% return vs 8.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLM or DGS?

DGS is cheaper with a 0.58% expense ratio, compared with 0.70% for FLM.

Which ETF pays a higher dividend yield, FLM or DGS?

DGS has the higher dividend yield at 3.21%, compared with 1.01% for FLM.

What is the main difference between FLM and DGS?

FLM is categorized as Building & Construction, while DGS is Emerging Markets Diversified. FLM tracks ISE Global Engineering & Construction Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: First Trust and WisdomTree. Their fees differ too: 0.70% for FLM and 0.58% for DGS.

Which has better risk-adjusted returns?

FLM currently has the higher Sharpe Ratio (2.15 vs 1.76), 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.