FTCE vs. FDL

Last updated Jun 3, 2026

FTCE (First Trust New Constructs Core Earnings Leaders ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - FTCE is a Large Cap Blend Equities fund tracking the Bloomberg New Constructs Core Earnings Leaders Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past year, FTCE returned 37.80% vs 24.43% for FDL. At a 0.42 correlation, their price movements are largely independent. FTCE charges 0.60%/yr vs 0.45%/yr for FDL.

Performance

FTCE vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust New Constructs Core Earnings Leaders ETF (FTCE) 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, FTCE achieves a 14.69% return, which is significantly higher than FDL's 13.62% return.

FTCE

• 1D: 0.28%
• 1M: 10.79%
• YTD: 14.69%
• 6M: 15.43%
• 1Y: 37.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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)

FTCE vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FTCE First Trust New Constructs Core Earnings Leaders ETF	14.69%	26.14%	-0.04%
FDL First Trust Morningstar Dividend Leaders Index Fund	13.62%	14.79%	-1.24%

Correlation

The correlation between FTCE and FDL is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (All Time) Calculated using the full available price history since Oct 4, 2024	0.42

The correlation between FTCE and FDL shifts across timeframes, from 0.29 (1 year) to 0.42 (all time), reflecting how their relationship changes across market environments.

FTCE vs. FDL - Sectors Allocation Comparison

Sectors	FTCE	FDL
Technology	21.8%	1.1%
Industrials	15.8%	3.8%
Financial Services	14.9%	15.1%
Healthcare	10.9%	16.8%
Utilities	7.9%	6.5%
Real Estate	6.9%	-
Consumer Cyclical	5.9%	3.8%
Energy	5.0%	27.3%
Basic Materials	4.0%	0.3%
Consumer Defensive	4.0%	14.7%
Communication Services	2.0%	10.6%

Return for Risk

FTCE vs. FDL — Risk / Return Rank

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

FTCE

FTCE Risk / Return Rank: 81
FTCE Sharpe Ratio Rank: 86
FTCE Sortino Ratio Rank: 86
FTCE Omega Ratio Rank: 83
FTCE Calmar Ratio Rank: 74
FTCE Martin Ratio Rank: 75

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.

FTCE vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust New Constructs Core Earnings Leaders ETF (FTCE) 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.

	FTCE	FDL	Difference
Sharpe ratio Return per unit of total volatility	2.91	2.18	+0.74
Sortino ratio Return per unit of downside risk	3.94	3.35	+0.60
Omega ratio Gain probability vs. loss probability	1.51	1.38	+0.13
Calmar ratio Return relative to maximum drawdown	3.77	5.74	-1.97
Martin ratio Return relative to average drawdown	14.49	14.05	+0.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTCE vs. FDL - Sharpe Ratio Comparison

The current FTCE Sharpe Ratio is 2.91, which is higher than the FDL Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of FTCE 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

	FTCE	FDL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.91	2.18	+0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.89	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.50	0.45	+1.05

Drawdowns

FTCE vs. FDL - Drawdown Comparison

The maximum FTCE drawdown since its inception was -18.11%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for FTCE and FDL.

Drawdown Indicators

	FTCE	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-18.11%	-65.93%	+47.82%
Max Drawdown (1Y) Largest decline over 1 year	-10.16%	-4.27%	-5.89%
Max Drawdown (3Y) Largest decline over 3 years	—	-12.24%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-16.46%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	0.00%	-1.92%	+1.92%
Average Drawdown Average peak-to-trough decline	-2.50%	-9.66%	+7.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	1.75%	+0.89%

Volatility

FTCE vs. FDL - Volatility Comparison

First Trust New Constructs Core Earnings Leaders ETF (FTCE) has a higher volatility of 3.33% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 2.95%. This indicates that FTCE'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

	FTCE	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.33%	2.95%	+0.38%
Volatility (6M) Calculated over the trailing 6-month period	10.16%	7.87%	+2.29%
Volatility (1Y) Calculated over the trailing 1-year period	13.03%	11.27%	+1.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.76%	14.31%	+2.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.76%	17.11%	-0.35%

FTCE vs. FDL - Expense Ratio Comparison

FTCE has a 0.60% expense ratio, which is higher than FDL's 0.45% expense ratio.

Dividends

FTCE vs. FDL - Dividend Comparison

FTCE's dividend yield for the trailing twelve months is around 0.79%, 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%
FTCE First Trust New Constructs Core Earnings Leaders ETF	0.79%	0.96%	0.28%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FTCE and FDL in my portfolio?

FTCE and FDL have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTCE or FDL?

FTCE has higher volatility (3.33%) compared to FDL (2.95%). In terms of maximum drawdown, FTCE dropped -18.11% vs FDL's -65.93%.

Which ETF is better, FTCE or FDL?

On 1-year performance, FTCE leads with 37.80% vs 24.43% for FDL. 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, FTCE or FDL?

Over the 1-year period, FTCE has performed better with a 37.80% return vs 24.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTCE or FDL?

FDL is cheaper with a 0.45% expense ratio, compared with 0.60% for FTCE.

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

FDL has the higher dividend yield at 3.67%, compared with 0.79% for FTCE.

What is the main difference between FTCE and FDL?

FTCE is categorized as Large Cap Blend Equities, while FDL is Large Cap Value Equities. FTCE tracks Bloomberg New Constructs Core Earnings Leaders Index, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.60% for FTCE and 0.45% for FDL.

Which has better risk-adjusted returns?

FTCE currently has the higher Sharpe Ratio (2.91 vs 2.18), 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.