FXZ vs. AIRR

Last updated Aug 2, 2026

FXZ (First Trust Materials AlphaDEX Fund) and AIRR (First Trust RBA American Industrial Renaissance ETF) are both exchange-traded funds - FXZ is a Materials fund tracking the StrataQuant Materials Index, while AIRR is a Building & Construction fund tracking the Richard Bernstein Advisors American Industrial Renaissance Index. Both are passively managed. Over the past 10 years, FXZ returned 10.25%/yr vs 20.11%/yr for AIRR. Their 0.76 correlation means they have sometimes moved together and sometimes differently. FXZ charges 0.67%/yr vs 0.69%/yr for AIRR.

Performance

FXZ vs. AIRR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Materials AlphaDEX Fund (FXZ) and First Trust RBA American Industrial Renaissance ETF (AIRR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FXZ having a 18.92% return and AIRR slightly higher at 19.12%. Over the past 10 years, FXZ has underperformed AIRR with an annualized return of 10.25%, while AIRR has yielded a comparatively higher 20.11% annualized return.

FXZ

• 1D: -1.69%
• 1M: -2.68%
• 6M: 7.26%
• YTD: 18.92%
• 1Y: 38.67%
• 3Y*: 5.94%
• 5Y*: 7.59%
• 10Y*: 10.25%
• ALL TIME*: 8.86%

AIRR

• 1D: 1.59%
• 1M: -7.04%
• 6M: 6.28%
• YTD: 19.12%
• 1Y: 37.54%
• 3Y*: 29.02%
• 5Y*: 23.37%
• 10Y*: 20.11%
• ALL TIME*: 15.59%

*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)
AIRR First Trust RBA American Industrial Renaissance ETF	$86.28M	$88.15M	$93.52M
FXZ First Trust Materials AlphaDEX Fund	$3.44M	$3.68M	$4.56M

FXZ vs. AIRR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXZ First Trust Materials AlphaDEX Fund	18.92%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%
AIRR First Trust RBA American Industrial Renaissance ETF	19.12%	27.92%	33.45%	31.43%	-2.08%	33.01%	17.17%	33.97%	-20.57%	16.28%

Correlation

The correlation between FXZ and AIRR is 0.69, 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.	0.69
Correlation (3Y) Balances recent behavior with more history.	0.69
Correlation (5Y) Shows whether the relationship held over a longer period.	0.72
Correlation (10Y) Provides a long-term view across more market conditions.	0.76
Correlation (All Time) Calculated using the full available price history since Mar 11, 2014	0.76

The correlation between FXZ and AIRR has been stable across timeframes, ranging from 0.69 to 0.76 - a consistent structural relationship.

FXZ vs. AIRR - Sectors Allocation Comparison

Sectors	FXZ	AIRR
Basic Materials	72.3%	3.4%
Industrials	23.4%	77.6%
Consumer Cyclical	4.3%	1.9%
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	1.7%
Financial Services	-	12.1%
Healthcare	-	-
Real Estate	-	-
Technology	-	3.4%
Utilities	-	-

Return for Risk

FXZ vs. AIRR — Risk / Return Rank

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

FXZ

FXZ Risk / Return Rank: 70
FXZ Sharpe Ratio Rank: 69
FXZ Sortino Ratio Rank: 68
FXZ Omega Ratio Rank: 62
FXZ Calmar Ratio Rank: 79
FXZ Martin Ratio Rank: 71

AIRR

AIRR Risk / Return Rank: 54
AIRR Sharpe Ratio Rank: 51
AIRR Sortino Ratio Rank: 50
AIRR Omega Ratio Rank: 46
AIRR Calmar Ratio Rank: 57
AIRR Martin Ratio Rank: 64

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.

FXZ vs. AIRR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Materials AlphaDEX Fund (FXZ) and First Trust RBA American Industrial Renaissance ETF (AIRR). 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.

	FXZ	AIRR	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.23	+0.34
Sortino ratio: Return per unit of downside risk	2.23	1.77	+0.46
Omega ratio: Gain probability vs. loss probability	1.27	1.21	+0.06
Calmar ratio: Return relative to maximum drawdown	2.81	2.01	+0.79
Martin ratio: Return relative to average drawdown	8.65	7.71	+0.94

FXZ vs. AIRR - Sharpe Ratio Comparison

The current FXZ Sharpe Ratio is 1.57, which is comparable to the AIRR Sharpe Ratio of 1.23. The chart below compares the historical Sharpe Ratios of FXZ and AIRR, 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

FXZ vs. AIRR - Drawdown Comparison

The maximum FXZ drawdown since its inception was -65.46%, which is greater than AIRR's maximum drawdown of -42.37%. Use the drawdown chart below to compare losses from any high point for FXZ and AIRR.

Drawdown Indicators

	FXZ	AIRR	Difference
Max Drawdown Largest peak-to-trough decline	-65.46%	-42.37%	-23.09%
Max Drawdown (1Y) Largest decline over 1 year	-12.75%	-17.18%	+4.43%
Max Drawdown (3Y) Largest decline over 3 years	-33.99%	-27.95%	-6.04%
Max Drawdown (5Y) Largest decline over 5 years	-33.99%	-27.95%	-6.04%
Max Drawdown (10Y) Largest decline over 10 years	-49.41%	-42.37%	-7.04%
Current Drawdown Current decline from peak	-9.42%	-12.16%	+2.74%
Average Drawdown Average peak-to-trough decline	-11.31%	-7.46%	-3.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.13%	4.48%	-0.35%

Volatility

FXZ vs. AIRR - Volatility Comparison

The current volatility for First Trust Materials AlphaDEX Fund (FXZ) is 6.20%, while First Trust RBA American Industrial Renaissance ETF (AIRR) has a volatility of 10.08%. This indicates that FXZ experiences smaller price fluctuations and is considered to be less risky than AIRR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXZ	AIRR	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.20%	10.08%	-3.88%
Volatility (6M) Calculated over the trailing 6-month period	17.54%	22.37%	-4.83%
Volatility (1Y) Calculated over the trailing 1-year period	22.84%	28.07%	-5.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.15%	25.72%	-1.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.94%	26.47%	-1.53%

FXZ vs. AIRR - Expense Ratio Comparison

FXZ has a 0.67% expense ratio, which is lower than AIRR's 0.69% expense ratio.

Dividends

FXZ vs. AIRR - Dividend Comparison

FXZ's dividend yield for the trailing twelve months is around 1.42%, more than AIRR's 0.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AIRR First Trust RBA American Industrial Renaissance ETF	0.09%	0.19%	0.18%	0.23%	0.12%	0.05%	0.10%	0.20%	0.43%	0.30%	0.08%	0.47%
FXZ First Trust Materials AlphaDEX Fund	1.42%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%

Frequently Asked Questions

Can I hold both FXZ and AIRR in my portfolio?

FXZ and AIRR have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXZ or AIRR?

AIRR has higher volatility (10.08%) compared to FXZ (6.20%). In terms of maximum drawdown, FXZ dropped -65.46% vs AIRR's -42.37%.

Which ETF is better, FXZ or AIRR?

On 10-year performance, AIRR leads with 20.11% vs 10.25% for FXZ. On fees, FXZ is cheaper at 0.67% per year. On volatility, FXZ has been the lower-risk option at 6.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXZ or AIRR?

Over the 10-year period, AIRR has performed better with a 20.11% return vs 10.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXZ or AIRR?

FXZ is cheaper with a 0.67% expense ratio, compared with 0.69% for AIRR.

Which ETF pays a higher dividend yield, FXZ or AIRR?

FXZ has the higher dividend yield at 1.42%, compared with 0.09% for AIRR.

What is the main difference between FXZ and AIRR?

FXZ is categorized as Materials, while AIRR is Building & Construction. FXZ tracks StrataQuant Materials Index, while AIRR tracks Richard Bernstein Advisors American Industrial Renaissance Index. Their fees differ too: 0.67% for FXZ and 0.69% for AIRR.

Which has better risk-adjusted returns?

FXZ currently has the higher Sharpe Ratio (1.57 vs 1.23), 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.