FTDS vs. USMF

Last updated Aug 2, 2026

FTDS (First Trust Dividend Strength ETF) and USMF (WisdomTree US Multifactor Fund) are both Mid Cap Blend Equities funds - FTDS tracks the Dividend Strength Index while USMF tracks the WisdomTree US Multifactor Index. Both are passively managed. Over the past 5 years, FTDS returned 8.13%/yr vs 7.39%/yr for USMF. Their 0.72 correlation means they have sometimes moved together and sometimes differently. FTDS charges 0.70%/yr vs 0.28%/yr for USMF.

Performance

FTDS vs. USMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Dividend Strength ETF (FTDS) and WisdomTree US Multifactor Fund (USMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTDS achieves a 15.08% return, which is significantly higher than USMF's 3.98% return.

FTDS

• 1D: 0.31%
• 1M: 4.00%
• 6M: 8.67%
• YTD: 15.08%
• 1Y: 24.87%
• 3Y*: 15.10%
• 5Y*: 8.13%
• 10Y*: 11.18%
• ALL TIME*: 6.70%

USMF

• 1D: 0.14%
• 1M: 0.09%
• 6M: 3.76%
• YTD: 3.98%
• 1Y: 6.68%
• 3Y*: 11.64%
• 5Y*: 7.39%
• 10Y*: —
• ALL TIME*: 10.32%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FTDS First Trust Dividend Strength ETF	$146.70K	$150.71K	$191.32K
USMF WisdomTree US Multifactor Fund	$1.11M	$1.03M	$1.79M

FTDS vs. USMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTDS First Trust Dividend Strength ETF	15.08%	13.64%	11.12%	11.75%	-13.54%	24.79%	14.16%	24.29%	-10.35%	11.84%
USMF WisdomTree US Multifactor Fund	3.98%	4.60%	19.65%	13.47%	-8.82%	21.26%	12.01%	24.06%	-4.72%	11.27%

Correlation

The correlation between FTDS and USMF is 0.50, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.50
Correlation (3Y) Balances recent behavior with more history.	0.71
Correlation (5Y) Shows whether the relationship held over a longer period.	0.78
Correlation (All Time) Calculated using the full available price history since Aug 24, 2017	0.72

Over the past year, the correlation between FTDS and USMF has dropped to 0.50 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

FTDS vs. USMF - Sectors Allocation Comparison

Sectors	FTDS	USMF
Financial Services	30.2%	11.4%
Industrials	20.6%	9.9%
Energy	17.6%	2.7%
Healthcare	9.6%	9.7%
Technology	8.6%	35.6%
Basic Materials	8.3%	1.4%
Consumer Cyclical	3.3%	10.4%
Consumer Defensive	1.9%	4.5%
Communication Services	-	10.3%
Real Estate	-	2.0%
Utilities	-	2.1%

Return for Risk

FTDS vs. USMF — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FTDS

FTDS Risk / Return Rank: 81
FTDS Sharpe Ratio Rank: 81
FTDS Sortino Ratio Rank: 84
FTDS Omega Ratio Rank: 78
FTDS Calmar Ratio Rank: 88
FTDS Martin Ratio Rank: 75

USMF

USMF Risk / Return Rank: 26
USMF Sharpe Ratio Rank: 23
USMF Sortino Ratio Rank: 23
USMF Omega Ratio Rank: 22
USMF Calmar Ratio Rank: 29
USMF Martin Ratio Rank: 32

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FTDS vs. USMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Dividend Strength ETF (FTDS) and WisdomTree US Multifactor Fund (USMF). 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.

	FTDS	USMF	Difference
Sharpe ratio: Return per unit of total volatility	1.86	0.53	+1.34
Sortino ratio: Return per unit of downside risk	2.76	0.83	+1.94
Omega ratio: Gain probability vs. loss probability	1.33	1.10	+0.23
Calmar ratio: Return relative to maximum drawdown	3.61	0.95	+2.66
Martin ratio: Return relative to average drawdown	9.38	2.89	+6.49

FTDS vs. USMF - Sharpe Ratio Comparison

The current FTDS Sharpe Ratio is 1.86, which is higher than the USMF Sharpe Ratio of 0.53. The chart below compares the historical Sharpe Ratios of FTDS and USMF, 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

FTDS vs. USMF - Drawdown Comparison

The maximum FTDS drawdown since its inception was -56.53%, which is greater than USMF's maximum drawdown of -36.24%. Use the drawdown chart below to compare losses from any high point for FTDS and USMF.

Drawdown Indicators

	FTDS	USMF	Difference
Max Drawdown Largest peak-to-trough decline	-56.53%	-36.24%	-20.29%
Max Drawdown (1Y) Largest decline over 1 year	-6.57%	-6.47%	-0.10%
Max Drawdown (3Y) Largest decline over 3 years	-18.04%	-15.39%	-2.65%
Max Drawdown (5Y) Largest decline over 5 years	-23.35%	-18.10%	-5.25%
Max Drawdown (10Y) Largest decline over 10 years	-42.47%	—	—
Current Drawdown Current decline from peak	-0.74%	-2.50%	+1.76%
Average Drawdown Average peak-to-trough decline	-9.81%	-4.12%	-5.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	2.11%	+0.42%

Volatility

FTDS vs. USMF - Volatility Comparison

The current volatility for First Trust Dividend Strength ETF (FTDS) is 3.55%, while WisdomTree US Multifactor Fund (USMF) has a volatility of 3.96%. This indicates that FTDS experiences smaller price fluctuations and is considered to be less risky than USMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTDS	USMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.55%	3.96%	-0.41%
Volatility (6M) Calculated over the trailing 6-month period	8.28%	9.25%	-0.97%
Volatility (1Y) Calculated over the trailing 1-year period	12.81%	11.66%	+1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.52%	14.40%	+3.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.05%	16.95%	+3.10%

FTDS vs. USMF - Expense Ratio Comparison

FTDS has a 0.70% expense ratio, which is higher than USMF's 0.28% expense ratio.

Dividends

FTDS vs. USMF - Dividend Comparison

FTDS's dividend yield for the trailing twelve months is around 1.53%, more than USMF's 1.32% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTDS First Trust Dividend Strength ETF	1.53%	1.59%	2.05%	2.15%	2.31%	0.72%	0.99%	1.13%	1.14%	0.79%	1.24%	0.95%
USMF WisdomTree US Multifactor Fund	1.32%	1.37%	1.22%	1.33%	1.74%	1.42%	1.34%	1.38%	1.45%	0.67%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FTDS and USMF in my portfolio?

FTDS and USMF 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, FTDS or USMF?

USMF has higher volatility (3.96%) compared to FTDS (3.55%). In terms of maximum drawdown, FTDS dropped -56.53% vs USMF's -36.24%.

Which ETF is better, FTDS or USMF?

On 5-year performance, FTDS leads with 8.13% vs 7.39% for USMF. On fees, USMF is cheaper at 0.28% per year. On volatility, FTDS has been the lower-risk option at 3.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTDS or USMF?

Over the 5-year period, FTDS has performed better with a 8.13% return vs 7.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTDS or USMF?

USMF is cheaper with a 0.28% expense ratio, compared with 0.70% for FTDS.

Which ETF pays a higher dividend yield, FTDS or USMF?

FTDS has the higher dividend yield at 1.53%, compared with 1.32% for USMF.

What is the main difference between FTDS and USMF?

FTDS tracks Dividend Strength Index, while USMF tracks WisdomTree US Multifactor Index. They also come from different issuers: First Trust and WisdomTree. Their fees differ too: 0.70% for FTDS and 0.28% for USMF.

Which has better risk-adjusted returns?

FTDS currently has the higher Sharpe Ratio (1.86 vs 0.53), 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.