FXO vs. FBDC

Last updated Aug 5, 2026

FXO (First Trust Financials AlphaDEX Fund) and FBDC (FT Confluence BDC & Specialty Finance Income ETF) are both Financials Equities funds from First Trust. FXO is passively managed, while FBDC is actively managed. Over the past year, FXO returned 20.77% vs -7.42% for FBDC. Their 0.56 correlation means they have sometimes moved together and sometimes differently. FXO charges 0.62%/yr vs 1.35%/yr for FBDC.

Performance

FXO vs. FBDC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Financials AlphaDEX Fund (FXO) and FT Confluence BDC & Specialty Finance Income ETF (FBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXO achieves a 12.28% return, which is significantly higher than FBDC's -3.55% return.

FXO

• 1D: 0.71%
• 1M: 4.66%
• 6M: 10.72%
• YTD: 12.28%
• 1Y: 20.77%
• 3Y*: 20.31%
• 5Y*: 11.44%
• 10Y*: 13.29%
• ALL TIME*: 8.63%

FBDC

• 1D: 1.71%
• 1M: 3.54%
• 6M: 1.08%
• YTD: -3.55%
• 1Y: -7.42%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -5.61%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FBDC FT Confluence BDC & Specialty Finance Income ETF	$236.15K	$201.18K	$193.83K
FXO First Trust Financials AlphaDEX Fund	$3.33M	$3.32M	$3.46M

FXO vs. FBDC - Yearly Performance Comparison

	2026 (YTD)	2025
FXO First Trust Financials AlphaDEX Fund	12.28%	9.56%
FBDC FT Confluence BDC & Specialty Finance Income ETF	-3.55%	-2.66%

Correlation

The correlation between FXO and FBDC is 0.57, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.57
Correlation (All Time) Calculated using the full available price history since Jun 30, 2025	0.56

The correlation between FXO and FBDC has been stable across timeframes, ranging from 0.56 to 0.57 - a consistent structural relationship.

Return for Risk

FXO vs. FBDC — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FXO

FXO Risk / Return Rank: 45
FXO Sharpe Ratio Rank: 48
FXO Sortino Ratio Rank: 46
FXO Omega Ratio Rank: 45
FXO Calmar Ratio Rank: 44
FXO Martin Ratio Rank: 43

FBDC

FBDC Risk / Return Rank: 6
FBDC Sharpe Ratio Rank: 6
FBDC Sortino Ratio Rank: 5
FBDC Omega Ratio Rank: 6
FBDC Calmar Ratio Rank: 6
FBDC Martin Ratio Rank: 6

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FXO vs. FBDC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Financials AlphaDEX Fund (FXO) and FT Confluence BDC & Specialty Finance Income ETF (FBDC). 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.

	FXO	FBDC	Difference
Sharpe ratio: Return per unit of total volatility	1.35	-0.41	+1.76
Sortino ratio: Return per unit of downside risk	1.90	-0.47	+2.36
Omega ratio: Gain probability vs. loss probability	1.24	0.95	+0.29
Calmar ratio: Return relative to maximum drawdown	1.78	-0.41	+2.19
Martin ratio: Return relative to average drawdown	5.33	-0.73	+6.06

FXO vs. FBDC - Sharpe Ratio Comparison

The current FXO Sharpe Ratio is 1.35, which is higher than the FBDC Sharpe Ratio of -0.41. The chart below compares the historical Sharpe Ratios of FXO and FBDC, 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

FXO vs. FBDC - Drawdown Comparison

The maximum FXO drawdown since its inception was -71.30%, which is greater than FBDC's maximum drawdown of -20.60%. Use the drawdown chart below to compare losses from any high point for FXO and FBDC.

Drawdown Indicators

	FXO	FBDC	Difference
Max Drawdown Largest peak-to-trough decline	-71.30%	-20.60%	-50.70%
Max Drawdown (1Y) Largest decline over 1 year	-11.72%	-18.08%	+6.36%
Max Drawdown (3Y) Largest decline over 3 years	-21.35%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-28.80%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-48.55%	—	—
Current Drawdown Current decline from peak	0.00%	-11.79%	+11.79%
Average Drawdown Average peak-to-trough decline	-13.01%	-10.92%	-2.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.91%	10.16%	-6.25%

Volatility

FXO vs. FBDC - Volatility Comparison

The current volatility for First Trust Financials AlphaDEX Fund (FXO) is 4.15%, while FT Confluence BDC & Specialty Finance Income ETF (FBDC) has a volatility of 5.49%. This indicates that FXO experiences smaller price fluctuations and is considered to be less risky than FBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXO	FBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.15%	5.49%	-1.34%
Volatility (6M) Calculated over the trailing 6-month period	11.07%	14.77%	-3.70%
Volatility (1Y) Calculated over the trailing 1-year period	15.51%	18.37%	-2.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.72%	17.96%	+3.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.06%	17.96%	+6.10%

FXO vs. FBDC - Expense Ratio Comparison

FXO has a 0.62% expense ratio, which is lower than FBDC's 1.35% expense ratio.

Dividends

FXO vs. FBDC - Dividend Comparison

FXO's dividend yield for the trailing twelve months is around 1.95%, less than FBDC's 11.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FBDC FT Confluence BDC & Specialty Finance Income ETF	11.88%	5.41%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FXO First Trust Financials AlphaDEX Fund	1.95%	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 FXO and FBDC in my portfolio?

FXO and FBDC have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXO or FBDC?

FBDC has higher volatility (5.49%) compared to FXO (4.15%). In terms of maximum drawdown, FXO dropped -71.30% vs FBDC's -20.60%.

Which ETF is better, FXO or FBDC?

On 1-year performance, FXO leads with 20.77% vs -7.42% for FBDC. On fees, FXO is cheaper at 0.62% per year. On volatility, FXO has been the lower-risk option at 4.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXO or FBDC?

Over the 1-year period, FXO has performed better with a 20.77% return vs -7.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXO or FBDC?

FXO is cheaper with a 0.62% expense ratio, compared with 1.35% for FBDC.

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

FBDC has the higher dividend yield at 11.88%, compared with 1.95% for FXO.

What is the main difference between FXO and FBDC?

Their fees differ too: 0.62% for FXO and 1.35% for FBDC.

Which has better risk-adjusted returns?

FXO currently has the higher Sharpe Ratio (1.35 vs -0.41), 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.