FRI vs. FDL

Last updated Jun 3, 2026

FRI (First Trust S&P REIT Index Fund) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - FRI is a REIT fund tracking the S&P United States REIT, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, FRI returned 5.60%/yr vs 11.27%/yr for FDL. A 0.61 correlation means they provide meaningful diversification when combined. FRI charges 0.50%/yr vs 0.45%/yr for FDL.

Performance

FRI vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust S&P REIT Index Fund (FRI) 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, FRI achieves a 11.66% return, which is significantly lower than FDL's 13.62% return. Over the past 10 years, FRI has underperformed FDL with an annualized return of 5.60%, while FDL has yielded a comparatively higher 11.27% annualized return.

FRI

• 1D: 0.38%
• 1M: -1.40%
• YTD: 11.66%
• 6M: 10.48%
• 1Y: 14.05%
• 3Y*: 11.01%
• 5Y*: 4.35%
• 10Y*: 5.60%

FDL

• 1D: 0.42%
• 1M: -0.81%
• YTD: 13.62%
• 6M: 16.42%
• 1Y: 24.43%
• 3Y*: 19.07%
• 5Y*: 12.64%
• 10Y*: 11.27%

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

FRI vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FRI First Trust S&P REIT Index Fund	11.66%	2.80%	7.84%	13.33%	-24.66%	42.55%	-7.90%	23.67%	-4.28%	3.86%
FDL First Trust Morningstar Dividend Leaders Index Fund	13.62%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between FRI and FDL is 0.50, 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	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.64
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.61

The correlation between FRI and FDL shifts across timeframes, from 0.50 (1 year) to 0.65 (5 years), reflecting how their relationship changes across market environments.

FRI vs. FDL - Sectors Allocation Comparison

Sectors	FRI	FDL
Real Estate	96.2%	-
Financial Services	2.3%	15.1%
Utilities	0.8%	6.5%
Basic Materials	-	0.3%
Communication Services	-	10.6%
Consumer Cyclical	-	3.8%
Consumer Defensive	-	14.7%
Energy	-	27.3%
Healthcare	-	16.8%
Industrials	-	3.8%
Technology	-	1.1%

Return for Risk

FRI vs. FDL — Risk / Return Rank

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

FRI

FRI Risk / Return Rank: 32
FRI Sharpe Ratio Rank: 30
FRI Sortino Ratio Rank: 28
FRI Omega Ratio Rank: 28
FRI Calmar Ratio Rank: 38
FRI Martin Ratio Rank: 38

FDL

FDL Risk / Return Rank: 73
FDL Sharpe Ratio Rank: 65
FDL Sortino Ratio Rank: 73
FDL Omega Ratio Rank: 62
FDL Calmar Ratio Rank: 91
FDL Martin Ratio Rank: 73

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.

FRI vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust S&P REIT Index Fund (FRI) 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.

	FRI	FDL	Difference
Sharpe ratio Return per unit of total volatility	1.08	2.18	-1.10
Sortino ratio Return per unit of downside risk	1.52	3.35	-1.82
Omega ratio Gain probability vs. loss probability	1.19	1.38	-0.19
Calmar ratio Return relative to maximum drawdown	1.88	5.74	-3.86
Martin ratio Return relative to average drawdown	6.00	14.05	-8.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FRI vs. FDL - Sharpe Ratio Comparison

The current FRI Sharpe Ratio is 1.08, which is lower than the FDL Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of FRI 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

	FRI	FDL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.08	2.18	-1.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.89	-0.65
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.66	-0.39
Sharpe Ratio (All Time) Calculated using the full available price history	0.18	0.45	-0.27

Drawdowns

FRI vs. FDL - Drawdown Comparison

The maximum FRI drawdown since its inception was -71.95%, which is greater than FDL's maximum drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for FRI and FDL.

Drawdown Indicators

	FRI	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-71.95%	-65.93%	-6.02%
Max Drawdown (1Y) Largest decline over 1 year	-7.57%	-4.27%	-3.30%
Max Drawdown (3Y) Largest decline over 3 years	-18.90%	-12.24%	-6.66%
Max Drawdown (5Y) Largest decline over 5 years	-31.21%	-16.46%	-14.75%
Max Drawdown (10Y) Largest decline over 10 years	-44.16%	-41.40%	-2.76%
Current Drawdown Current decline from peak	-3.44%	-1.92%	-1.52%
Average Drawdown Average peak-to-trough decline	-13.70%	-9.66%	-4.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.37%	1.75%	+0.62%

Volatility

FRI vs. FDL - Volatility Comparison

First Trust S&P REIT Index Fund (FRI) has a higher volatility of 3.99% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 2.95%. This indicates that FRI'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

	FRI	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.99%	2.95%	+1.04%
Volatility (6M) Calculated over the trailing 6-month period	9.21%	7.87%	+1.34%
Volatility (1Y) Calculated over the trailing 1-year period	13.05%	11.27%	+1.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.65%	14.31%	+4.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.06%	17.11%	+3.95%

FRI vs. FDL - Expense Ratio Comparison

FRI has a 0.50% expense ratio, which is higher than FDL's 0.45% expense ratio.

Dividends

FRI vs. FDL - Dividend Comparison

FRI's dividend yield for the trailing twelve months is around 2.60%, less than FDL's 3.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.67%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
FRI First Trust S&P REIT Index Fund	2.60%	2.99%	3.33%	3.24%	2.52%	1.44%	3.08%	2.28%	3.21%	2.82%	3.27%	2.66%

Frequently Asked Questions

Can I hold both FRI and FDL in my portfolio?

FRI and FDL have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRI or FDL?

FRI has higher volatility (3.99%) compared to FDL (2.95%). In terms of maximum drawdown, FRI dropped -71.95% vs FDL's -65.93%.

Which ETF is better, FRI or FDL?

On 10-year performance, FDL leads with 11.27% vs 5.60% for FRI. On fees, FDL is cheaper at 0.45% per year. On volatility, FDL has been the lower-risk option at 2.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FRI or FDL?

Over the 10-year period, FDL has performed better with a 11.27% return vs 5.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FRI or FDL?

FDL is cheaper with a 0.45% expense ratio, compared with 0.50% for FRI.

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

FDL has the higher dividend yield at 3.67%, compared with 2.60% for FRI.

What is the main difference between FRI and FDL?

FRI is categorized as REIT, while FDL is Large Cap Value Equities. FRI tracks S&P United States REIT, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.50% for FRI and 0.45% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.18 vs 1.08), 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.