FRDM vs. FDT

Last updated Jun 9, 2026

FRDM (Freedom 100 Emerging Markets ETF) and FDT (First Trust Developed Markets ex-US AlphaDEX Fund) are both exchange-traded funds - FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index, while FDT is a Foreign Large Cap Equities fund tracking the NASDAQ AlphaDEX DM Ex-US Index. Both are passively managed. Over the past 5 years, FRDM returned 17.60%/yr vs 11.81%/yr for FDT. A 0.79 correlation means they provide meaningful diversification when combined. FRDM charges 0.49%/yr vs 0.80%/yr for FDT.

Performance

FRDM vs. FDT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Freedom 100 Emerging Markets ETF (FRDM) and First Trust Developed Markets ex-US AlphaDEX Fund (FDT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FRDM achieves a 33.53% return, which is significantly higher than FDT's 20.41% return.

FRDM

• 1D: 2.14%
• 1M: -1.02%
• YTD: 33.53%
• 6M: 40.61%
• 1Y: 79.74%
• 3Y*: 32.52%
• 5Y*: 17.60%
• 10Y*: —

FDT

• 1D: 1.18%
• 1M: -3.96%
• YTD: 20.41%
• 6M: 22.67%
• 1Y: 47.32%
• 3Y*: 27.66%
• 5Y*: 11.81%
• 10Y*: 10.61%

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

FRDM vs. FDT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FRDM Freedom 100 Emerging Markets ETF	33.53%	61.27%	1.70%	22.77%	-14.45%	6.13%	16.90%	12.33%
FDT First Trust Developed Markets ex-US AlphaDEX Fund	20.41%	52.21%	6.97%	15.03%	-19.51%	11.43%	4.29%	10.77%

Correlation

The correlation between FRDM and FDT is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since May 24, 2019	0.79

The correlation between FRDM and FDT has been stable across timeframes, ranging from 0.75 to 0.83 - a consistent structural relationship.

FRDM vs. FDT - Sectors Allocation Comparison

Sectors	FRDM	FDT
Technology	41.1%	8.1%
Financial Services	22.1%	10.2%
Industrials	8.6%	34.0%
Consumer Cyclical	7.8%	11.5%
Basic Materials	7.4%	9.6%
Communication Services	3.9%	2.7%
Utilities	2.6%	5.2%
Real Estate	2.5%	5.3%
Consumer Defensive	2.2%	2.8%
Healthcare	1.8%	1.4%
Energy	0.1%	9.2%

Return for Risk

FRDM vs. FDT — Risk / Return Rank

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

FRDM

FRDM Risk / Return Rank: 90
FRDM Sharpe Ratio Rank: 93
FRDM Sortino Ratio Rank: 87
FRDM Omega Ratio Rank: 90
FRDM Calmar Ratio Rank: 88
FRDM Martin Ratio Rank: 90

FDT

FDT Risk / Return Rank: 80
FDT Sharpe Ratio Rank: 85
FDT Sortino Ratio Rank: 80
FDT Omega Ratio Rank: 83
FDT Calmar Ratio Rank: 77
FDT Martin Ratio Rank: 78

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.

FRDM vs. FDT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Freedom 100 Emerging Markets ETF (FRDM) and First Trust Developed Markets ex-US AlphaDEX Fund (FDT). 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.

	FRDM	FDT	Difference
Sharpe ratio: Return per unit of total volatility	3.08	2.49	+0.59
Sortino ratio: Return per unit of downside risk	3.57	3.18	+0.39
Omega ratio: Gain probability vs. loss probability	1.53	1.45	+0.08
Calmar ratio: Return relative to maximum drawdown	4.75	3.55	+1.21
Martin ratio: Return relative to average drawdown	18.69	13.67	+5.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FRDM vs. FDT - Sharpe Ratio Comparison

The current FRDM Sharpe Ratio is 3.08, which is comparable to the FDT Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of FRDM and FDT, 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

	FRDM	FDT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.08	2.49	+0.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	0.65	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.57	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.79	0.38	+0.41

Drawdowns

FRDM vs. FDT - Drawdown Comparison

The maximum FRDM drawdown since its inception was -40.49%, smaller than the maximum FDT drawdown of -46.10%. Use the drawdown chart below to compare losses from any high point for FRDM and FDT.

Drawdown Indicators

	FRDM	FDT	Difference
Max Drawdown Largest peak-to-trough decline	-40.49%	-46.10%	+5.61%
Max Drawdown (1Y) Largest decline over 1 year	-16.87%	-13.41%	-3.46%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	-14.29%	-2.58%
Max Drawdown (5Y) Largest decline over 5 years	-29.25%	-33.04%	+3.79%
Max Drawdown (10Y) Largest decline over 10 years	—	-46.10%	—
Current Drawdown Current decline from peak	-8.86%	-5.58%	-3.28%
Average Drawdown Average peak-to-trough decline	-7.10%	-10.77%	+3.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.28%	3.47%	+0.81%

Volatility

FRDM vs. FDT - Volatility Comparison

Freedom 100 Emerging Markets ETF (FRDM) has a higher volatility of 13.53% compared to First Trust Developed Markets ex-US AlphaDEX Fund (FDT) at 8.24%. This indicates that FRDM's price experiences larger fluctuations and is considered to be riskier than FDT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRDM	FDT	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.53%	8.24%	+5.29%
Volatility (6M) Calculated over the trailing 6-month period	23.53%	16.73%	+6.80%
Volatility (1Y) Calculated over the trailing 1-year period	26.09%	19.12%	+6.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.15%	18.36%	+2.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.98%	18.59%	+4.39%

FRDM vs. FDT - Expense Ratio Comparison

FRDM has a 0.49% expense ratio, which is lower than FDT's 0.80% expense ratio.

Dividends

FRDM vs. FDT - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.64%, less than FDT's 2.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDT First Trust Developed Markets ex-US AlphaDEX Fund	2.96%	3.27%	3.89%	4.36%	2.29%	3.80%	2.42%	2.78%	2.13%	1.57%	1.76%	1.83%
FRDM Freedom 100 Emerging Markets ETF	1.64%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FRDM and FDT in my portfolio?

FRDM and FDT have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRDM or FDT?

FRDM has higher volatility (13.53%) compared to FDT (8.24%). In terms of maximum drawdown, FRDM dropped -40.49% vs FDT's -46.10%.

Which ETF is better, FRDM or FDT?

On 5-year performance, FRDM leads with 17.60% vs 11.81% for FDT. On fees, FRDM is cheaper at 0.49% per year. On volatility, FDT has been the lower-risk option at 8.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRDM or FDT?

Over the 5-year period, FRDM has performed better with a 17.60% return vs 11.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRDM or FDT?

FRDM is cheaper with a 0.49% expense ratio, compared with 0.80% for FDT.

Which ETF pays a higher dividend yield, FRDM or FDT?

FDT has the higher dividend yield at 2.96%, compared with 1.64% for FRDM.

What is the main difference between FRDM and FDT?

FRDM is categorized as Emerging Markets Diversified, while FDT is Foreign Large Cap Equities. FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index, while FDT tracks NASDAQ AlphaDEX DM Ex-US Index. They also come from different issuers: Freedom Funds and First Trust. Their fees differ too: 0.49% for FRDM and 0.80% for FDT.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (3.08 vs 2.49), 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.