FTXO vs. FDL

Last updated Jun 4, 2026

FTXO (First Trust Nasdaq Bank ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - FTXO is a Financials Equities fund tracking the NASDAQ US Banks Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 5 years, FTXO returned 5.35%/yr vs 12.51%/yr for FDL. A 0.66 correlation means they provide meaningful diversification when combined. FTXO charges 0.60%/yr vs 0.45%/yr for FDL.

Performance

FTXO vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Nasdaq Bank ETF (FTXO) 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, FTXO achieves a 0.81% return, which is significantly lower than FDL's 13.33% return.

FTXO

• 1D: -1.34%
• 1M: -0.87%
• YTD: 0.81%
• 6M: 4.64%
• 1Y: 23.41%
• 3Y*: 24.18%
• 5Y*: 5.35%
• 10Y*: —

FDL

• 1D: -0.26%
• 1M: -0.26%
• YTD: 13.33%
• 6M: 14.76%
• 1Y: 23.67%
• 3Y*: 18.97%
• 5Y*: 12.51%
• 10Y*: 11.24%

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

FTXO vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FTXO First Trust Nasdaq Bank ETF	0.81%	21.32%	29.05%	0.05%	-17.93%	40.53%	-12.53%	30.11%	-21.79%	14.25%
FDL First Trust Morningstar Dividend Leaders Index Fund	13.33%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between FTXO and FDL is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (All Time) Calculated using the full available price history since Oct 10, 2016	0.66

The correlation between FTXO and FDL shifts across timeframes, from 0.48 (1 year) to 0.68 (5 years), reflecting how their relationship changes across market environments.

FTXO vs. FDL - Sectors Allocation Comparison

Sectors	FTXO	FDL
Financial Services	100.0%	15.1%
Technology	0.4%	1.1%
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%
Real Estate	-	-
Utilities	-	6.5%

Return for Risk

FTXO vs. FDL — Risk / Return Rank

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

FTXO

FTXO Risk / Return Rank: 30
FTXO Sharpe Ratio Rank: 31
FTXO Sortino Ratio Rank: 30
FTXO Omega Ratio Rank: 30
FTXO Calmar Ratio Rank: 29
FTXO Martin Ratio Rank: 28

FDL

FDL Risk / Return Rank: 70
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 70
FDL Omega Ratio Rank: 59
FDL Calmar Ratio Rank: 90
FDL Martin Ratio Rank: 71

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.

FTXO vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Nasdaq Bank ETF (FTXO) 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.

	FTXO	FDL	Difference
Sharpe ratio: Return per unit of total volatility	1.13	2.11	-0.98
Sortino ratio: Return per unit of downside risk	1.62	3.25	-1.64
Omega ratio: Gain probability vs. loss probability	1.21	1.37	-0.16
Calmar ratio: Return relative to maximum drawdown	1.41	5.56	-4.15
Martin ratio: Return relative to average drawdown	3.90	13.56	-9.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTXO vs. FDL - Sharpe Ratio Comparison

The current FTXO Sharpe Ratio is 1.13, which is lower than the FDL Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of FTXO 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

	FTXO	FDL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	2.11	-0.98
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.88	-0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.45	-0.14

Drawdowns

FTXO vs. FDL - Drawdown Comparison

The maximum FTXO drawdown since its inception was -55.26%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for FTXO and FDL.

Drawdown Indicators

	FTXO	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-55.26%	-65.93%	+10.67%
Max Drawdown (1Y) Largest decline over 1 year	-16.69%	-4.27%	-12.42%
Max Drawdown (3Y) Largest decline over 3 years	-25.84%	-12.24%	-13.60%
Max Drawdown (5Y) Largest decline over 5 years	-46.55%	-16.46%	-30.09%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-8.10%	-2.18%	-5.92%
Average Drawdown Average peak-to-trough decline	-15.88%	-9.66%	-6.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	1.75%	+4.26%

Volatility

FTXO vs. FDL - Volatility Comparison

First Trust Nasdaq Bank ETF (FTXO) has a higher volatility of 5.69% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 2.85%. This indicates that FTXO'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

	FTXO	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	2.85%	+2.84%
Volatility (6M) Calculated over the trailing 6-month period	15.46%	7.87%	+7.59%
Volatility (1Y) Calculated over the trailing 1-year period	20.80%	11.28%	+9.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.01%	14.31%	+12.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.98%	17.11%	+12.87%

FTXO vs. FDL - Expense Ratio Comparison

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

Dividends

FTXO vs. FDL - Dividend Comparison

FTXO's dividend yield for the trailing twelve months is around 1.78%, 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%
FTXO First Trust Nasdaq Bank ETF	1.78%	1.92%	2.18%	3.20%	2.94%	1.64%	2.74%	2.53%	3.51%	1.09%	0.16%	0.00%

Frequently Asked Questions

Can I hold both FTXO and FDL in my portfolio?

FTXO and FDL have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTXO or FDL?

FTXO has higher volatility (5.69%) compared to FDL (2.85%). In terms of maximum drawdown, FTXO dropped -55.26% vs FDL's -65.93%.

Which ETF is better, FTXO or FDL?

On 5-year performance, FDL leads with 12.51% vs 5.35% for FTXO. On fees, FDL is cheaper at 0.45% per year. On volatility, FDL has been the lower-risk option at 2.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTXO or FDL?

Over the 5-year period, FDL has performed better with a 12.51% return vs 5.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTXO or FDL?

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

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

FDL has the higher dividend yield at 3.68%, compared with 1.78% for FTXO.

What is the main difference between FTXO and FDL?

FTXO is categorized as Financials Equities, while FDL is Large Cap Value Equities. FTXO tracks NASDAQ US Banks Index, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.60% for FTXO and 0.45% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.11 vs 1.13), 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.