FRDM vs. FDTS

Last updated Jun 9, 2026

FRDM (Freedom 100 Emerging Markets ETF) and FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) are both exchange-traded funds - FRDM is a Emerging Markets Diversified fund tracking the Life + Liberty Freedom 100 Emerging Markets Index, while FDTS is a Foreign Small & Mid Cap Equities fund tracking the NASDAQ AlphaDEX DM Ex-US Small Cap Index. Both are passively managed. Over the past 5 years, FRDM returned 17.60%/yr vs 10.11%/yr for FDTS. A 0.56 correlation means they provide meaningful diversification when combined. FRDM charges 0.49%/yr vs 0.80%/yr for FDTS.

Performance

FRDM vs. FDTS - 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 Small Cap AlphaDEX Fund (FDTS). 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 FDTS's 14.34% return.

FRDM

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

FDTS

• 1D: 1.24%
• 1M: -8.33%
• YTD: 14.34%
• 6M: 16.46%
• 1Y: 40.77%
• 3Y*: 23.77%
• 5Y*: 10.11%
• 10Y*: 9.93%

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

FRDM vs. FDTS - 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%
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	14.34%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	13.18%

Correlation

The correlation between FRDM and FDTS is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (All Time) Calculated using the full available price history since May 24, 2019	0.56

The correlation between FRDM and FDTS shifts across timeframes, from 0.56 (all time) to 0.75 (1 year), reflecting how their relationship changes across market environments.

FRDM vs. FDTS - Sectors Allocation Comparison

Sectors	FRDM	FDTS
Technology	41.1%	13.4%
Financial Services	22.1%	11.7%
Industrials	8.6%	23.0%
Consumer Cyclical	7.8%	18.4%
Basic Materials	7.4%	11.2%
Communication Services	3.9%	3.0%
Utilities	2.6%	2.7%
Real Estate	2.5%	4.3%
Consumer Defensive	2.2%	5.0%
Healthcare	1.8%	3.0%
Energy	0.1%	4.3%

Return for Risk

FRDM vs. FDTS — 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

FDTS

FDTS Risk / Return Rank: 74
FDTS Sharpe Ratio Rank: 80
FDTS Sortino Ratio Rank: 75
FDTS Omega Ratio Rank: 76
FDTS Calmar Ratio Rank: 71
FDTS Martin Ratio Rank: 69

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. FDTS - 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 Small Cap AlphaDEX Fund (FDTS). 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	FDTS	Difference
Sharpe ratio: Return per unit of total volatility	3.08	2.32	+0.76
Sortino ratio: Return per unit of downside risk	3.57	3.01	+0.56
Omega ratio: Gain probability vs. loss probability	1.53	1.40	+0.13
Calmar ratio: Return relative to maximum drawdown	4.75	3.25	+1.50
Martin ratio: Return relative to average drawdown	18.69	11.52	+7.17
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. FDTS - Sharpe Ratio Comparison

The current FRDM Sharpe Ratio is 3.08, which is higher than the FDTS Sharpe Ratio of 2.32. The chart below compares the historical Sharpe Ratios of FRDM and FDTS, 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	FDTS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.08	2.32	+0.76
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.84	0.35	+0.49
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.40	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.79	0.36	+0.42

Drawdowns

FRDM vs. FDTS - Drawdown Comparison

The maximum FRDM drawdown since its inception was -40.49%, smaller than the maximum FDTS drawdown of -51.26%. Use the drawdown chart below to compare losses from any high point for FRDM and FDTS.

Drawdown Indicators

	FRDM	FDTS	Difference
Max Drawdown Largest peak-to-trough decline	-40.49%	-51.26%	+10.77%
Max Drawdown (1Y) Largest decline over 1 year	-16.87%	-12.61%	-4.26%
Max Drawdown (3Y) Largest decline over 3 years	-16.87%	-13.19%	-3.68%
Max Drawdown (5Y) Largest decline over 5 years	-29.25%	-33.11%	+3.86%
Max Drawdown (10Y) Largest decline over 10 years	—	-51.26%	—
Current Drawdown Current decline from peak	-8.86%	-8.33%	-0.53%
Average Drawdown Average peak-to-trough decline	-7.10%	-10.65%	+3.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.28%	3.55%	+0.73%

Volatility

FRDM vs. FDTS - Volatility Comparison

Freedom 100 Emerging Markets ETF (FRDM) has a higher volatility of 13.53% compared to First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) at 7.49%. This indicates that FRDM's price experiences larger fluctuations and is considered to be riskier than FDTS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FRDM	FDTS	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.53%	7.49%	+6.04%
Volatility (6M) Calculated over the trailing 6-month period	23.53%	14.83%	+8.70%
Volatility (1Y) Calculated over the trailing 1-year period	26.09%	17.67%	+8.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.15%	29.35%	-8.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.98%	24.88%	-1.90%

FRDM vs. FDTS - Expense Ratio Comparison

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

Dividends

FRDM vs. FDTS - Dividend Comparison

FRDM's dividend yield for the trailing twelve months is around 1.64%, less than FDTS's 2.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	2.63%	2.94%	3.94%	2.90%	3.71%	3.01%	2.02%	2.30%	1.96%	2.08%	1.78%	1.73%
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 FDTS in my portfolio?

FRDM and FDTS have a correlation of 0.75, 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 FDTS?

FRDM has higher volatility (13.53%) compared to FDTS (7.49%). In terms of maximum drawdown, FRDM dropped -40.49% vs FDTS's -51.26%.

Which ETF is better, FRDM or FDTS?

On 5-year performance, FRDM leads with 17.60% vs 10.11% for FDTS. On fees, FRDM is cheaper at 0.49% per year. On volatility, FDTS has been the lower-risk option at 7.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRDM or FDTS?

Over the 5-year period, FRDM has performed better with a 17.60% return vs 10.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRDM or FDTS?

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

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

FDTS has the higher dividend yield at 2.63%, compared with 1.64% for FRDM.

What is the main difference between FRDM and FDTS?

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

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (3.08 vs 2.32), 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.