FTXO vs. FXO

Last updated Jun 4, 2026

FTXO (First Trust Nasdaq Bank ETF) and FXO (First Trust Financials AlphaDEX Fund) are both Financials Equities funds from First Trust - FTXO tracks the NASDAQ US Banks Index while FXO tracks the StrataQuant Financials Index. Both are passively managed. Over the past 5 years, FTXO returned 5.35%/yr vs 7.43%/yr for FXO. Their correlation of 0.91 suggests significant overlap in exposure. FTXO charges 0.60%/yr vs 0.62%/yr for FXO.

Performance

FTXO vs. FXO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Nasdaq Bank ETF (FTXO) and First Trust Financials AlphaDEX Fund (FXO). 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 higher than FXO's -3.33% return.

FTXO

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

FXO

• 1D: -1.14%
• 1M: -2.00%
• YTD: -3.33%
• 6M: -1.77%
• 1Y: 9.07%
• 3Y*: 18.83%
• 5Y*: 7.43%
• 10Y*: 11.86%

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

FTXO vs. FXO - 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%
FXO First Trust Financials AlphaDEX Fund	-3.33%	13.59%	27.72%	9.28%	-9.24%	37.76%	5.95%	26.31%	-11.72%	17.88%

Correlation

The correlation between FTXO and FXO is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (All Time) Calculated using the full available price history since Oct 10, 2016	0.91

The correlation between FTXO and FXO has been stable across timeframes, ranging from 0.88 to 0.93 - a consistent structural relationship.

FTXO vs. FXO - Sectors Allocation Comparison

Sectors	FTXO	FXO
Financial Services	100.0%	94.3%
Technology	0.4%	0.6%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	5.1%
Utilities	-	-

Return for Risk

FTXO vs. FXO — 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

FXO

FXO Risk / Return Rank: 18
FXO Sharpe Ratio Rank: 18
FXO Sortino Ratio Rank: 17
FXO Omega Ratio Rank: 17
FXO Calmar Ratio Rank: 19
FXO Martin Ratio Rank: 20

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. FXO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Nasdaq Bank ETF (FTXO) and First Trust Financials AlphaDEX Fund (FXO). 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	FXO	Difference
Sharpe ratio: Return per unit of total volatility	1.13	0.58	+0.55
Sortino ratio: Return per unit of downside risk	1.62	0.89	+0.73
Omega ratio: Gain probability vs. loss probability	1.21	1.11	+0.10
Calmar ratio: Return relative to maximum drawdown	1.41	0.78	+0.63
Martin ratio: Return relative to average drawdown	3.90	2.33	+1.58
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. FXO - Sharpe Ratio Comparison

The current FTXO Sharpe Ratio is 1.13, which is higher than the FXO Sharpe Ratio of 0.58. The chart below compares the historical Sharpe Ratios of FTXO and FXO, 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	FXO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	0.58	+0.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.34	-0.14
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.30	0.00

Drawdowns

FTXO vs. FXO - Drawdown Comparison

The maximum FTXO drawdown since its inception was -55.26%, smaller than the maximum FXO drawdown of -71.30%. Use the drawdown chart below to compare losses from any high point for FTXO and FXO.

Drawdown Indicators

	FTXO	FXO	Difference
Max Drawdown Largest peak-to-trough decline	-55.26%	-71.30%	+16.04%
Max Drawdown (1Y) Largest decline over 1 year	-16.69%	-11.72%	-4.97%
Max Drawdown (3Y) Largest decline over 3 years	-25.84%	-21.35%	-4.49%
Max Drawdown (5Y) Largest decline over 5 years	-46.55%	-28.80%	-17.75%
Max Drawdown (10Y) Largest decline over 10 years	—	-48.55%	—
Current Drawdown Current decline from peak	-8.10%	-6.22%	-1.88%
Average Drawdown Average peak-to-trough decline	-15.88%	-13.12%	-2.76%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	3.91%	+2.10%

Volatility

FTXO vs. FXO - Volatility Comparison

First Trust Nasdaq Bank ETF (FTXO) has a higher volatility of 5.69% compared to First Trust Financials AlphaDEX Fund (FXO) at 3.63%. This indicates that FTXO's price experiences larger fluctuations and is considered to be riskier than FXO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTXO	FXO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.69%	3.63%	+2.06%
Volatility (6M) Calculated over the trailing 6-month period	15.46%	10.74%	+4.72%
Volatility (1Y) Calculated over the trailing 1-year period	20.80%	15.63%	+5.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.01%	21.96%	+5.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.98%	24.13%	+5.85%

FTXO vs. FXO - Expense Ratio Comparison

FTXO has a 0.60% expense ratio, which is lower than FXO's 0.62% expense ratio.

Dividends

FTXO vs. FXO - Dividend Comparison

FTXO's dividend yield for the trailing twelve months is around 1.78%, less than FXO's 2.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
FXO First Trust Financials AlphaDEX Fund	2.23%	1.78%	1.97%	2.98%	2.49%	1.91%	2.60%	1.72%	2.60%	1.62%	1.35%	1.51%

Frequently Asked Questions

Can I hold both FTXO and FXO in my portfolio?

FTXO and FXO have a correlation of 0.88, 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 FXO?

FTXO has higher volatility (5.69%) compared to FXO (3.63%). In terms of maximum drawdown, FTXO dropped -55.26% vs FXO's -71.30%.

Which ETF is better, FTXO or FXO?

On 5-year performance, FXO leads with 7.43% vs 5.35% for FTXO. On fees, FTXO is cheaper at 0.60% per year. On volatility, FXO has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTXO or FXO?

Over the 5-year period, FXO has performed better with a 7.43% 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 FXO?

FTXO is cheaper with a 0.60% expense ratio, compared with 0.62% for FXO.

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

FXO has the higher dividend yield at 2.23%, compared with 1.78% for FTXO.

What is the main difference between FTXO and FXO?

FTXO tracks NASDAQ US Banks Index, while FXO tracks StrataQuant Financials Index. Their fees differ too: 0.60% for FTXO and 0.62% for FXO.

Which has better risk-adjusted returns?

FTXO currently has the higher Sharpe Ratio (1.13 vs 0.58), 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.