FXN vs. VDE

Last updated Jun 24, 2026

FXN (First Trust Energy AlphaDEX Fund) and VDE (Vanguard Energy ETF) are both Energy Equities funds - FXN tracks the StrataQuant Energy Index while VDE tracks the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, FXN returned 5.82%/yr vs 8.90%/yr for VDE. Their correlation of 0.93 suggests significant overlap in exposure. FXN charges 0.64%/yr vs 0.09%/yr for VDE.

Performance

FXN vs. VDE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Energy AlphaDEX Fund (FXN) and Vanguard Energy ETF (VDE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXN achieves a 25.36% return, which is significantly higher than VDE's 23.55% return. Over the past 10 years, FXN has underperformed VDE with an annualized return of 5.82%, while VDE has yielded a comparatively higher 8.90% annualized return.

FXN

• 1D: 0.10%
• 1M: -7.84%
• YTD: 25.36%
• 6M: 25.74%
• 1Y: 36.81%
• 3Y*: 13.95%
• 5Y*: 15.13%
• 10Y*: 5.82%

VDE

• 1D: 0.60%
• 1M: -7.94%
• YTD: 23.55%
• 6M: 24.06%
• 1Y: 31.01%
• 3Y*: 16.13%
• 5Y*: 18.74%
• 10Y*: 8.90%

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

FXN vs. VDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXN First Trust Energy AlphaDEX Fund	25.36%	3.39%	0.27%	0.97%	46.92%	51.79%	-19.91%	-6.76%	-24.79%	-5.02%
VDE Vanguard Energy ETF	23.55%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%

Correlation

The correlation between FXN and VDE is 0.94, 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	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.93

The correlation between FXN and VDE has been stable across timeframes, ranging from 0.93 to 0.95 - a consistent structural relationship.

FXN vs. VDE - Sectors Allocation Comparison

Sectors	FXN	VDE
Energy	92.2%	99.5%
Technology	7.8%	-
Basic Materials	-	0.4%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Utilities	-	-

Return for Risk

FXN vs. VDE — Risk / Return Rank

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

FXN

FXN Risk / Return Rank: 49
FXN Sharpe Ratio Rank: 48
FXN Sortino Ratio Rank: 44
FXN Omega Ratio Rank: 42
FXN Calmar Ratio Rank: 62
FXN Martin Ratio Rank: 51

VDE

VDE Risk / Return Rank: 43
VDE Sharpe Ratio Rank: 45
VDE Sortino Ratio Rank: 41
VDE Omega Ratio Rank: 40
VDE Calmar Ratio Rank: 45
VDE Martin Ratio Rank: 43

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.

FXN vs. VDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Energy AlphaDEX Fund (FXN) and Vanguard Energy ETF (VDE). 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.

	FXN	VDE	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.51	+0.06
Sortino ratio: Return per unit of downside risk	2.10	2.04	+0.06
Omega ratio: Gain probability vs. loss probability	1.26	1.25	+0.01
Calmar ratio: Return relative to maximum drawdown	2.85	2.19	+0.65
Martin ratio: Return relative to average drawdown	8.08	6.75	+1.33

FXN vs. VDE - Sharpe Ratio Comparison

The current FXN Sharpe Ratio is 1.57, which is comparable to the VDE Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of FXN and VDE, 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

FXN vs. VDE - Drawdown Comparison

The maximum FXN drawdown since its inception was -87.39%, which is greater than VDE's maximum drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for FXN and VDE.

Drawdown Indicators

	FXN	VDE	Difference
Max Drawdown Largest peak-to-trough decline	-87.39%	-74.20%	-13.19%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-14.20%	+1.21%
Max Drawdown (3Y) Largest decline over 3 years	-31.69%	-21.41%	-10.28%
Max Drawdown (5Y) Largest decline over 5 years	-31.69%	-26.58%	-5.11%
Max Drawdown (10Y) Largest decline over 10 years	-80.63%	-69.29%	-11.34%
Current Drawdown Current decline from peak	-11.26%	-12.59%	+1.33%
Average Drawdown Average peak-to-trough decline	-37.90%	-19.94%	-17.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.57%	4.61%	-0.04%

Volatility

FXN vs. VDE - Volatility Comparison

First Trust Energy AlphaDEX Fund (FXN) and Vanguard Energy ETF (VDE) have volatilities of 7.38% and 7.06%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXN	VDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.38%	7.06%	+0.32%
Volatility (6M) Calculated over the trailing 6-month period	17.15%	16.61%	+0.54%
Volatility (1Y) Calculated over the trailing 1-year period	23.85%	20.80%	+3.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.95%	26.37%	+2.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	34.94%	29.94%	+5.00%

FXN vs. VDE - Expense Ratio Comparison

FXN has a 0.64% expense ratio, which is higher than VDE's 0.09% expense ratio.

Dividends

FXN vs. VDE - Dividend Comparison

FXN's dividend yield for the trailing twelve months is around 1.91%, less than VDE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXN First Trust Energy AlphaDEX Fund	1.91%	2.53%	2.50%	3.09%	2.28%	0.87%	4.71%	1.47%	1.43%	1.17%	1.05%	2.36%
VDE Vanguard Energy ETF	2.54%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%

Frequently Asked Questions

Can I hold both FXN and VDE in my portfolio?

With a correlation of 0.94, FXN and VDE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FXN or VDE?

FXN has higher volatility (7.38%) compared to VDE (7.06%). In terms of maximum drawdown, FXN dropped -87.39% vs VDE's -74.20%.

Which ETF is better, FXN or VDE?

On 10-year performance, VDE leads with 8.90% vs 5.82% for FXN. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 7.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXN or VDE?

Over the 10-year period, VDE has performed better with a 8.90% return vs 5.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXN or VDE?

VDE is cheaper with a 0.09% expense ratio, compared with 0.64% for FXN.

Which ETF pays a higher dividend yield, FXN or VDE?

VDE has the higher dividend yield at 2.54%, compared with 1.91% for FXN.

What is the main difference between FXN and VDE?

FXN tracks StrataQuant Energy Index, while VDE tracks MSCI US Investable Market Energy 25/50 Index. They also come from different issuers: First Trust and Vanguard. Their fees differ too: 0.64% for FXN and 0.09% for VDE.

Which has better risk-adjusted returns?

FXN currently has the higher Sharpe Ratio (1.57 vs 1.51), 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.