FXR vs. XAR

Last updated Jun 24, 2026

FXR (First Trust Industrials/Producer Durables AlphaDEX Fund) and XAR (SPDR S&P Aerospace & Defense ETF) are both exchange-traded funds - FXR is a Industrials Equities fund tracking the StrataQuant Industrials Index, while XAR is a Aerospace & Defense fund tracking the S&P Aerospace & Defense Select Industry Index. Both are passively managed. Over the past 10 years, FXR returned 13.33%/yr vs 18.43%/yr for XAR. A 0.77 correlation means they provide meaningful diversification when combined. FXR charges 0.64%/yr vs 0.35%/yr for XAR.

Performance

FXR vs. XAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) and SPDR S&P Aerospace & Defense ETF (XAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXR achieves a 9.23% return, which is significantly lower than XAR's 14.20% return. Over the past 10 years, FXR has underperformed XAR with an annualized return of 13.33%, while XAR has yielded a comparatively higher 18.43% annualized return.

FXR

• 1D: -1.51%
• 1M: 1.86%
• YTD: 9.23%
• 6M: 7.46%
• 1Y: 20.59%
• 3Y*: 15.76%
• 5Y*: 9.01%
• 10Y*: 13.33%

XAR

• 1D: -0.92%
• 1M: 1.55%
• YTD: 14.20%
• 6M: 10.14%
• 1Y: 37.38%
• 3Y*: 33.41%
• 5Y*: 16.10%
• 10Y*: 18.43%

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

FXR vs. XAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXR First Trust Industrials/Producer Durables AlphaDEX Fund	9.23%	7.56%	16.19%	26.98%	-16.68%	25.07%	12.82%	33.42%	-15.12%	24.20%
XAR SPDR S&P Aerospace & Defense ETF	14.20%	46.15%	23.32%	23.79%	-5.02%	2.31%	6.18%	39.33%	-4.58%	33.00%

Correlation

The correlation between FXR and XAR is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Sep 29, 2011	0.77

The correlation between FXR and XAR shifts across timeframes, from 0.68 (1 year) to 0.78 (10 years), reflecting how their relationship changes across market environments.

FXR vs. XAR - Sectors Allocation Comparison

Sectors	FXR	XAR
Industrials	70.5%	99.3%
Technology	10.3%	0.7%
Consumer Cyclical	7.5%	-
Basic Materials	6.2%	-
Financial Services	3.4%	-
Healthcare	0.7%	-
Utilities	0.7%	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-

Return for Risk

FXR vs. XAR — Risk / Return Rank

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

FXR

FXR Risk / Return Rank: 32
FXR Sharpe Ratio Rank: 31
FXR Sortino Ratio Rank: 33
FXR Omega Ratio Rank: 29
FXR Calmar Ratio Rank: 32
FXR Martin Ratio Rank: 34

XAR

XAR Risk / Return Rank: 40
XAR Sharpe Ratio Rank: 39
XAR Sortino Ratio Rank: 41
XAR Omega Ratio Rank: 35
XAR Calmar Ratio Rank: 45
XAR Martin Ratio Rank: 40

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.

FXR vs. XAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) and SPDR S&P Aerospace & Defense ETF (XAR). 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.

	FXR	XAR	Difference
Sharpe ratio: Return per unit of total volatility	1.06	1.34	-0.28
Sortino ratio: Return per unit of downside risk	1.66	2.01	-0.35
Omega ratio: Gain probability vs. loss probability	1.19	1.23	-0.04
Calmar ratio: Return relative to maximum drawdown	1.51	2.18	-0.67
Martin ratio: Return relative to average drawdown	4.70	6.08	-1.38

FXR vs. XAR - Sharpe Ratio Comparison

The current FXR Sharpe Ratio is 1.06, which is comparable to the XAR Sharpe Ratio of 1.34. The chart below compares the historical Sharpe Ratios of FXR and XAR, 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

FXR vs. XAR - Drawdown Comparison

The maximum FXR drawdown since its inception was -63.81%, which is greater than XAR's maximum drawdown of -46.37%. Use the drawdown chart below to compare losses from any high point for FXR and XAR.

Drawdown Indicators

	FXR	XAR	Difference
Max Drawdown Largest peak-to-trough decline	-63.81%	-46.37%	-17.44%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-17.22%	+3.56%
Max Drawdown (3Y) Largest decline over 3 years	-26.65%	-19.73%	-6.92%
Max Drawdown (5Y) Largest decline over 5 years	-26.85%	-32.40%	+5.55%
Max Drawdown (10Y) Largest decline over 10 years	-44.71%	-46.37%	+1.66%
Current Drawdown Current decline from peak	-4.67%	-5.89%	+1.22%
Average Drawdown Average peak-to-trough decline	-10.34%	-6.78%	-3.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.39%	6.16%	-1.77%

Volatility

FXR vs. XAR - Volatility Comparison

The current volatility for First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) is 6.19%, while SPDR S&P Aerospace & Defense ETF (XAR) has a volatility of 10.65%. This indicates that FXR experiences smaller price fluctuations and is considered to be less risky than XAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXR	XAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.19%	10.65%	-4.46%
Volatility (6M) Calculated over the trailing 6-month period	15.19%	23.46%	-8.27%
Volatility (1Y) Calculated over the trailing 1-year period	19.55%	27.98%	-8.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.67%	23.69%	-3.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.91%	24.74%	-2.83%

FXR vs. XAR - Expense Ratio Comparison

FXR has a 0.64% expense ratio, which is higher than XAR's 0.35% expense ratio.

Dividends

FXR vs. XAR - Dividend Comparison

FXR's dividend yield for the trailing twelve months is around 0.62%, more than XAR's 0.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXR First Trust Industrials/Producer Durables AlphaDEX Fund	0.62%	0.71%	0.72%	0.77%	0.92%	0.52%	1.06%	0.74%	1.18%	0.55%	0.52%	0.62%
XAR SPDR S&P Aerospace & Defense ETF	0.29%	0.40%	0.66%	0.54%	0.50%	0.83%	0.63%	0.75%	1.19%	0.76%	1.09%	2.31%

Frequently Asked Questions

Can I hold both FXR and XAR in my portfolio?

FXR and XAR have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXR or XAR?

XAR has higher volatility (10.65%) compared to FXR (6.19%). In terms of maximum drawdown, FXR dropped -63.81% vs XAR's -46.37%.

Which ETF is better, FXR or XAR?

On 10-year performance, XAR leads with 18.43% vs 13.33% for FXR. On fees, XAR is cheaper at 0.35% per year. On volatility, FXR has been the lower-risk option at 6.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXR or XAR?

Over the 10-year period, XAR has performed better with a 18.43% return vs 13.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXR or XAR?

XAR is cheaper with a 0.35% expense ratio, compared with 0.64% for FXR.

Which ETF pays a higher dividend yield, FXR or XAR?

FXR has the higher dividend yield at 0.62%, compared with 0.29% for XAR.

What is the main difference between FXR and XAR?

FXR is categorized as Industrials Equities, while XAR is Aerospace & Defense. FXR tracks StrataQuant Industrials Index, while XAR tracks S&P Aerospace & Defense Select Industry Index. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.64% for FXR and 0.35% for XAR.

Which has better risk-adjusted returns?

XAR currently has the higher Sharpe Ratio (1.34 vs 1.06), 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.