FXO vs. FNCL

Last updated Aug 5, 2026

FXO (First Trust Financials AlphaDEX Fund) and FNCL (Fidelity MSCI Financials Index ETF) are both Financials Equities funds - FXO tracks the StrataQuant Financials Index while FNCL tracks the MSCI USA IMI Financials Index. Both are passively managed. Over the past 10 years, FXO returned 13.29%/yr vs 13.33%/yr for FNCL. Their correlation of 0.95 means they have usually moved in the same direction. FXO charges 0.62%/yr vs 0.08%/yr for FNCL.

Performance

FXO vs. FNCL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Financials AlphaDEX Fund (FXO) and Fidelity MSCI Financials Index ETF (FNCL). 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 FNCL's 7.18% return. Both investments have delivered pretty close results over the past 10 years, with FXO having a 13.29% annualized return and FNCL not far ahead at 13.33%.

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%

FNCL

• 1D: 0.86%
• 1M: 4.13%
• 6M: 9.09%
• YTD: 7.18%
• 1Y: 13.76%
• 3Y*: 20.82%
• 5Y*: 11.39%
• 10Y*: 13.33%
• ALL TIME*: 11.92%

*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)
FNCL Fidelity MSCI Financials Index ETF	$8.22M	$8.28M	$7.86M
FXO First Trust Financials AlphaDEX Fund	$3.33M	$3.32M	$3.46M

FXO vs. FNCL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXO First Trust Financials AlphaDEX Fund	12.28%	13.59%	27.72%	9.28%	-9.24%	37.76%	5.95%	26.31%	-11.72%	17.88%
FNCL Fidelity MSCI Financials Index ETF	7.18%	14.94%	30.44%	14.10%	-12.28%	34.92%	-2.19%	31.59%	-13.44%	19.99%

Correlation

The correlation between FXO and FNCL is 0.90, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.90
Correlation (3Y) Balances recent behavior with more history.	0.93
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (10Y) Provides a long-term view across more market conditions.	0.94
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.95

The correlation between FXO and FNCL has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

FXO vs. FNCL - Sectors Allocation Comparison

Sectors	FXO	FNCL
Financial Services	94.8%	97.0%
Real Estate	4.8%	0.7%
Technology	0.5%	1.9%
Basic Materials	-	-
Communication Services	-	0.0%
Consumer Cyclical	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	0.1%
Industrials	-	0.2%
Utilities	-	-

Return for Risk

FXO vs. FNCL — 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

FNCL

FNCL Risk / Return Rank: 31
FNCL Sharpe Ratio Rank: 34
FNCL Sortino Ratio Rank: 32
FNCL Omega Ratio Rank: 32
FNCL Calmar Ratio Rank: 27
FNCL Martin Ratio Rank: 27

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. FNCL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Financials AlphaDEX Fund (FXO) and Fidelity MSCI Financials Index ETF (FNCL). 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	FNCL	Difference
Sharpe ratio: Return per unit of total volatility	1.35	0.93	+0.42
Sortino ratio: Return per unit of downside risk	1.90	1.34	+0.56
Omega ratio: Gain probability vs. loss probability	1.24	1.17	+0.07
Calmar ratio: Return relative to maximum drawdown	1.78	0.93	+0.85
Martin ratio: Return relative to average drawdown	5.33	2.43	+2.90

FXO vs. FNCL - Sharpe Ratio Comparison

The current FXO Sharpe Ratio is 1.35, which is higher than the FNCL Sharpe Ratio of 0.93. The chart below compares the historical Sharpe Ratios of FXO and FNCL, 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. FNCL - Drawdown Comparison

The maximum FXO drawdown since its inception was -71.30%, which is greater than FNCL's maximum drawdown of -44.38%. Use the drawdown chart below to compare losses from any high point for FXO and FNCL.

Drawdown Indicators

	FXO	FNCL	Difference
Max Drawdown Largest peak-to-trough decline	-71.30%	-44.38%	-26.92%
Max Drawdown (1Y) Largest decline over 1 year	-11.72%	-14.78%	+3.06%
Max Drawdown (3Y) Largest decline over 3 years	-21.35%	-17.29%	-4.06%
Max Drawdown (5Y) Largest decline over 5 years	-28.80%	-25.68%	-3.12%
Max Drawdown (10Y) Largest decline over 10 years	-48.55%	-44.38%	-4.17%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-13.01%	-6.85%	-6.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.91%	5.67%	-1.76%

Volatility

FXO vs. FNCL - Volatility Comparison

First Trust Financials AlphaDEX Fund (FXO) has a higher volatility of 4.15% compared to Fidelity MSCI Financials Index ETF (FNCL) at 3.82%. This indicates that FXO's price experiences larger fluctuations and is considered to be riskier than FNCL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXO	FNCL	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.15%	3.82%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	11.07%	11.16%	-0.09%
Volatility (1Y) Calculated over the trailing 1-year period	15.51%	14.90%	+0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.72%	19.09%	+2.63%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.06%	22.28%	+1.78%

FXO vs. FNCL - Expense Ratio Comparison

FXO has a 0.62% expense ratio, which is higher than FNCL's 0.08% expense ratio.

Dividends

FXO vs. FNCL - Dividend Comparison

FXO's dividend yield for the trailing twelve months is around 1.95%, more than FNCL's 1.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FNCL Fidelity MSCI Financials Index ETF	1.53%	1.45%	1.52%	1.91%	2.29%	1.75%	2.26%	2.17%	2.37%	1.60%	1.81%	2.17%
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 FNCL in my portfolio?

With a correlation of 0.90, FXO and FNCL 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, FXO or FNCL?

FXO has higher volatility (4.15%) compared to FNCL (3.82%). In terms of maximum drawdown, FXO dropped -71.30% vs FNCL's -44.38%.

Which ETF is better, FXO or FNCL?

On 10-year performance, FNCL leads with 13.33% vs 13.29% for FXO. On fees, FNCL is cheaper at 0.08% per year. On volatility, FNCL has been the lower-risk option at 3.82%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXO or FNCL?

Over the 10-year period, FNCL has performed better with a 13.33% return vs 13.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXO or FNCL?

FNCL is cheaper with a 0.08% expense ratio, compared with 0.62% for FXO.

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

FXO has the higher dividend yield at 1.95%, compared with 1.53% for FNCL.

What is the main difference between FXO and FNCL?

FXO tracks StrataQuant Financials Index, while FNCL tracks MSCI USA IMI Financials Index. They also come from different issuers: First Trust and Fidelity. Their fees differ too: 0.62% for FXO and 0.08% for FNCL.

Which has better risk-adjusted returns?

FXO currently has the higher Sharpe Ratio (1.35 vs 0.93), 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.