FXN vs. XLE
Compare and contrast key facts about First Trust Energy AlphaDEX Fund (FXN) and Energy Select Sector SPDR Fund (XLE).
FXN and XLE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXN is a passively managed fund by First Trust that tracks the performance of the StrataQuant Energy Index. It was launched on May 8, 2007. XLE is a passively managed fund by State Street that tracks the performance of the Energy Select Sector Index. It was launched on Dec 16, 1998. Both FXN and XLE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FXN or XLE.
Key characteristics
| FXN | XLE | |
|---|---|---|
| YTD Return | 13.51% | 14.18% |
| 1Y Return | 28.29% | 24.31% |
| 3Y Return (Ann) | 23.43% | 26.12% |
| 5Y Return (Ann) | 12.47% | 13.71% |
| 10Y Return (Ann) | -1.32% | 4.10% |
| Sharpe Ratio | 1.56 | 1.39 |
| Daily Std Dev | 19.89% | 18.20% |
| Max Drawdown | -87.39% | -71.54% |
| Current Drawdown | -20.94% | -3.18% |
Correlation
The correlation between FXN and XLE is 0.92, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FXN vs. XLE - Performance Comparison
The year-to-date returns for both investments are quite close, with FXN having a 13.51% return and XLE slightly higher at 14.18%. Over the past 10 years, FXN has underperformed XLE with an annualized return of -1.32%, while XLE has yielded a comparatively higher 4.10% 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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FXN vs. XLE - Expense Ratio Comparison
FXN has a 0.64% expense ratio, which is higher than XLE's 0.13% expense ratio.
Risk-Adjusted Performance
FXN vs. XLE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Energy AlphaDEX Fund (FXN) and Energy Select Sector SPDR Fund (XLE). 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
FXN vs. XLE - Dividend Comparison
FXN's dividend yield for the trailing twelve months is around 1.90%, less than XLE's 3.07% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXN First Trust Energy AlphaDEX Fund | 1.90% | 3.09% | 2.28% | 0.87% | 4.71% | 1.47% | 1.43% | 1.17% | 1.05% | 2.36% | 1.74% | 0.82% |
XLE Energy Select Sector SPDR Fund | 3.07% | 3.55% | 3.68% | 4.21% | 5.62% | 5.73% | 3.54% | 3.03% | 2.26% | 3.39% | 2.35% | 1.73% |
Drawdowns
FXN vs. XLE - Drawdown Comparison
The maximum FXN drawdown since its inception was -87.39%, which is greater than XLE's maximum drawdown of -71.54%. Use the drawdown chart below to compare losses from any high point for FXN and XLE. For additional features, visit the drawdowns tool.
Volatility
FXN vs. XLE - Volatility Comparison
First Trust Energy AlphaDEX Fund (FXN) has a higher volatility of 5.44% compared to Energy Select Sector SPDR Fund (XLE) at 4.64%. This indicates that FXN's price experiences larger fluctuations and is considered to be riskier than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.