FTSM vs. AGG
Compare and contrast key facts about First Trust Enhanced Short Maturity ETF (FTSM) and iShares Core U.S. Aggregate Bond ETF (AGG).
FTSM and AGG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FTSM is an actively managed fund by First Trust. It was launched on Aug 5, 2014. AGG is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Sep 22, 2003.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FTSM or AGG.
Key characteristics
| FTSM | AGG | |
|---|---|---|
| YTD Return | 4.55% | 2.47% |
| 1Y Return | 5.67% | 8.21% |
| 3Y Return (Ann) | 3.52% | -2.17% |
| 5Y Return (Ann) | 2.41% | 0.06% |
| 10Y Return (Ann) | 1.94% | 1.54% |
| Sharpe Ratio | 11.15 | 1.43 |
| Sortino Ratio | 28.76 | 2.10 |
| Omega Ratio | 6.40 | 1.25 |
| Calmar Ratio | 84.26 | 0.55 |
| Martin Ratio | 349.48 | 5.25 |
| Ulcer Index | 0.02% | 1.63% |
| Daily Std Dev | 0.51% | 5.99% |
| Max Drawdown | -4.12% | -18.43% |
| Current Drawdown | 0.00% | -7.89% |
Correlation
The correlation between FTSM and AGG is 0.23, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
FTSM vs. AGG - Performance Comparison
In the year-to-date period, FTSM achieves a 4.55% return, which is significantly higher than AGG's 2.47% return. Over the past 10 years, FTSM has outperformed AGG with an annualized return of 1.94%, while AGG has yielded a comparatively lower 1.54% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FTSM vs. AGG - Expense Ratio Comparison
FTSM has a 0.25% expense ratio, which is higher than AGG's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
FTSM vs. AGG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Enhanced Short Maturity ETF (FTSM) and iShares Core U.S. Aggregate Bond ETF (AGG). 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.
Dividends
FTSM vs. AGG - Dividend Comparison
FTSM's dividend yield for the trailing twelve months is around 4.96%, more than AGG's 3.93% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTSM First Trust Enhanced Short Maturity ETF | 4.96% | 4.62% | 1.62% | 0.39% | 1.20% | 2.38% | 2.15% | 1.38% | 1.03% | 0.48% | 0.19% | 0.00% |
AGG iShares Core U.S. Aggregate Bond ETF | 3.93% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.96% | 2.32% | 2.39% | 2.45% | 2.40% | 2.32% |
Drawdowns
FTSM vs. AGG - Drawdown Comparison
The maximum FTSM drawdown since its inception was -4.12%, smaller than the maximum AGG drawdown of -18.43%. Use the drawdown chart below to compare losses from any high point for FTSM and AGG. For additional features, visit the drawdowns tool.
Volatility
FTSM vs. AGG - Volatility Comparison
The current volatility for First Trust Enhanced Short Maturity ETF (FTSM) is 0.14%, while iShares Core U.S. Aggregate Bond ETF (AGG) has a volatility of 1.67%. This indicates that FTSM experiences smaller price fluctuations and is considered to be less risky than AGG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.