FTCS vs. FDL

Last updated Jul 14, 2026

FTCS (First Trust Capital Strength ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - FTCS is a Large Cap Blend Equities fund tracking the The Capital Strength Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, FTCS returned 10.37%/yr vs 10.76%/yr for FDL. A 0.73 correlation means they provide meaningful diversification when combined. FTCS charges 0.53%/yr vs 0.43%/yr for FDL.

Performance

FTCS vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Capital Strength ETF (FTCS) 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, FTCS achieves a 5.41% return, which is significantly lower than FDL's 15.23% return. Both investments have delivered pretty close results over the past 10 years, with FTCS having a 10.37% annualized return and FDL not far ahead at 10.76%.

FTCS

• 1D: 0.34%
• 1M: 2.84%
• 6M: 2.28%
• YTD: 5.41%
• 1Y: 7.84%
• 3Y*: 10.17%
• 5Y*: 6.07%
• 10Y*: 10.37%

FDL

• 1D: 0.80%
• 1M: -0.89%
• 6M: 12.56%
• YTD: 15.23%
• 1Y: 20.80%
• 3Y*: 18.71%
• 5Y*: 13.58%
• 10Y*: 10.76%

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

FTCS vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTCS First Trust Capital Strength ETF	5.41%	6.46%	11.19%	8.48%	-10.22%	26.75%	13.05%	26.71%	-4.22%	26.57%
FDL First Trust Morningstar Dividend Leaders Index Fund	15.23%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between FTCS and FDL is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Jul 11, 2006	0.73

The correlation between FTCS and FDL shifts across timeframes, from 0.61 (1 year) to 0.73 (5 years), reflecting how their relationship changes across market environments.

FTCS vs. FDL - Sectors Allocation Comparison

Sectors	FTCS	FDL
Financial Services	20.0%	15.2%
Industrials	19.6%	3.9%
Healthcare	18.5%	17.6%
Consumer Defensive	14.2%	14.4%
Technology	13.6%	1.4%
Consumer Cyclical	7.7%	4.7%
Communication Services	2.3%	10.6%
Energy	2.1%	25.7%
Basic Materials	2.1%	0.3%
Real Estate	-	-
Utilities	-	6.5%

Return for Risk

FTCS vs. FDL — Risk / Return Rank

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

FTCS

FTCS Risk / Return Rank: 25
FTCS Sharpe Ratio Rank: 27
FTCS Sortino Ratio Rank: 27
FTCS Omega Ratio Rank: 24
FTCS Calmar Ratio Rank: 26
FTCS Martin Ratio Rank: 23

FDL

FDL Risk / Return Rank: 76
FDL Sharpe Ratio Rank: 70
FDL Sortino Ratio Rank: 77
FDL Omega Ratio Rank: 65
FDL Calmar Ratio Rank: 92
FDL Martin Ratio Rank: 75

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.

FTCS vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Capital Strength ETF (FTCS) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FTCS	FDL	Difference
Sharpe ratio: Return per unit of total volatility	0.77	1.80	-1.02
Sortino ratio: Return per unit of downside risk	1.22	2.72	-1.50
Omega ratio: Gain probability vs. loss probability	1.14	1.31	-0.17
Calmar ratio: Return relative to maximum drawdown	1.02	4.89	-3.87
Martin ratio: Return relative to average drawdown	2.27	11.11	-8.84

FTCS vs. FDL - Sharpe Ratio Comparison

The current FTCS Sharpe Ratio is 0.77, which is lower than the FDL Sharpe Ratio of 1.80. The chart below compares the historical Sharpe Ratios of FTCS 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.

Drawdowns

FTCS vs. FDL - Drawdown Comparison

The maximum FTCS drawdown since its inception was -53.64%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for FTCS and FDL.

Drawdown Indicators

	FTCS	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-53.64%	-65.93%	+12.29%
Max Drawdown (1Y) Largest decline over 1 year	-7.74%	-4.27%	-3.47%
Max Drawdown (3Y) Largest decline over 3 years	-12.62%	-12.24%	-0.38%
Max Drawdown (5Y) Largest decline over 5 years	-20.93%	-16.46%	-4.47%
Max Drawdown (10Y) Largest decline over 10 years	-31.93%	-41.40%	+9.47%
Current Drawdown Current decline from peak	-1.93%	-0.89%	-1.04%
Average Drawdown Average peak-to-trough decline	-6.91%	-9.62%	+2.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	1.88%	+1.57%

Volatility

FTCS vs. FDL - Volatility Comparison

The current volatility for First Trust Capital Strength ETF (FTCS) is 3.60%, while First Trust Morningstar Dividend Leaders Index Fund (FDL) has a volatility of 4.65%. This indicates that FTCS experiences smaller price fluctuations and is considered to be less risky than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTCS	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.60%	4.65%	-1.05%
Volatility (6M) Calculated over the trailing 6-month period	7.51%	8.37%	-0.86%
Volatility (1Y) Calculated over the trailing 1-year period	10.17%	11.65%	-1.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.18%	14.37%	-1.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.52%	17.12%	-1.60%

FTCS vs. FDL - Expense Ratio Comparison

FTCS has a 0.53% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

FTCS vs. FDL - Dividend Comparison

FTCS's dividend yield for the trailing twelve months is around 1.10%, less than FDL's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.68%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
FTCS First Trust Capital Strength ETF	1.10%	1.04%	1.33%	1.47%	1.23%	1.06%	0.93%	1.26%	1.26%	1.15%	1.43%	1.50%

Frequently Asked Questions

Can I hold both FTCS and FDL in my portfolio?

FTCS and FDL have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTCS or FDL?

FDL has higher volatility (4.65%) compared to FTCS (3.60%). In terms of maximum drawdown, FTCS dropped -53.64% vs FDL's -65.93%.

Which ETF is better, FTCS or FDL?

On 10-year performance, FDL leads with 10.76% vs 10.37% for FTCS. On fees, FDL is cheaper at 0.43% per year. On volatility, FTCS has been the lower-risk option at 3.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTCS or FDL?

Over the 10-year period, FDL has performed better with a 10.76% return vs 10.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTCS or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.53% for FTCS.

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

FDL has the higher dividend yield at 3.68%, compared with 1.10% for FTCS.

What is the main difference between FTCS and FDL?

FTCS is categorized as Large Cap Blend Equities, while FDL is Large Cap Value Equities. FTCS tracks The Capital Strength Index, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.53% for FTCS and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (1.80 vs 0.77), 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.