FXO vs. KCE
Compare and contrast key facts about First Trust Financials AlphaDEX Fund (FXO) and SPDR S&P Capital Markets ETF (KCE).
FXO and KCE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXO is a passively managed fund by First Trust that tracks the performance of the StrataQuant Financials Index. It was launched on May 8, 2007. KCE is a passively managed fund by State Street that tracks the performance of the S&P Capital Markets Select Industry Index. It was launched on Nov 8, 2005. Both FXO and KCE 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: FXO or KCE.
Key characteristics
| FXO | KCE | |
|---|---|---|
| YTD Return | 5.12% | 6.56% |
| 1Y Return | 25.57% | 36.50% |
| 3Y Return (Ann) | 3.70% | 8.56% |
| 5Y Return (Ann) | 10.22% | 16.15% |
| 10Y Return (Ann) | 10.19% | 11.25% |
| Sharpe Ratio | 1.40 | 2.24 |
| Daily Std Dev | 19.92% | 16.92% |
| Max Drawdown | -71.30% | -74.00% |
| Current Drawdown | -4.57% | -2.46% |
Correlation
The correlation between FXO and KCE is 0.85, 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
FXO vs. KCE - Performance Comparison
In the year-to-date period, FXO achieves a 5.12% return, which is significantly lower than KCE's 6.56% return. Over the past 10 years, FXO has underperformed KCE with an annualized return of 10.19%, while KCE has yielded a comparatively higher 11.25% 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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FXO vs. KCE - Expense Ratio Comparison
FXO has a 0.62% expense ratio, which is higher than KCE's 0.35% expense ratio.
Risk-Adjusted Performance
FXO vs. KCE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Financials AlphaDEX Fund (FXO) and SPDR S&P Capital Markets ETF (KCE). 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
FXO vs. KCE - Dividend Comparison
FXO's dividend yield for the trailing twelve months is around 2.73%, more than KCE's 1.82% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXO First Trust Financials AlphaDEX Fund | 2.73% | 2.98% | 2.49% | 1.91% | 2.60% | 1.72% | 2.60% | 1.62% | 1.35% | 1.51% | 1.54% | 1.21% |
KCE SPDR S&P Capital Markets ETF | 1.82% | 1.82% | 2.42% | 1.53% | 2.20% | 2.32% | 2.67% | 1.95% | 2.30% | 2.43% | 1.59% | 1.73% |
Drawdowns
FXO vs. KCE - Drawdown Comparison
The maximum FXO drawdown since its inception was -71.30%, roughly equal to the maximum KCE drawdown of -74.00%. Use the drawdown chart below to compare losses from any high point for FXO and KCE. For additional features, visit the drawdowns tool.
Volatility
FXO vs. KCE - Volatility Comparison
First Trust Financials AlphaDEX Fund (FXO) and SPDR S&P Capital Markets ETF (KCE) have volatilities of 4.37% and 4.58%, 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.