FXZ vs. FDL

Last updated Aug 2, 2026

FXZ (First Trust Materials AlphaDEX Fund) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - FXZ is a Materials fund tracking the StrataQuant Materials Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, FXZ returned 10.25%/yr vs 11.09%/yr for FDL. Their 0.65 correlation means they have sometimes moved together and sometimes differently. FXZ charges 0.67%/yr vs 0.43%/yr for FDL.

Performance

FXZ vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Materials AlphaDEX Fund (FXZ) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FXZ having a 18.92% return and FDL slightly lower at 18.16%. Over the past 10 years, FXZ has underperformed FDL with an annualized return of 10.25%, while FDL has yielded a comparatively higher 11.09% 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%

FDL

• 1D: 0.02%
• 1M: 3.27%
• 6M: 9.50%
• YTD: 18.16%
• 1Y: 27.65%
• 3Y*: 18.28%
• 5Y*: 13.98%
• 10Y*: 11.09%
• ALL TIME*: 8.94%

*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)
FDL First Trust Morningstar Dividend Leaders Index Fund	$52.24M	$50.06M	$42.95M
FXZ First Trust Materials AlphaDEX Fund	$3.44M	$3.68M	$4.56M

FXZ vs. FDL - 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%
FDL First Trust Morningstar Dividend Leaders Index Fund	18.16%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between FXZ and FDL is 0.34, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.34
Correlation (3Y) Balances recent behavior with more history.	0.56
Correlation (5Y) Shows whether the relationship held over a longer period.	0.63
Correlation (10Y) Provides a long-term view across more market conditions.	0.68
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.65

Over the past year, the correlation between FXZ and FDL has dropped to 0.34 - well below their long-term average of 0.65, suggesting their price drivers have been diverging.

FXZ vs. FDL - Sectors Allocation Comparison

Sectors	FXZ	FDL
Basic Materials	72.3%	0.4%
Industrials	23.4%	3.6%
Consumer Cyclical	4.3%	4.4%
Communication Services	-	11.2%
Consumer Defensive	-	24.3%
Energy	-	11.1%
Financial Services	-	13.7%
Healthcare	-	11.7%
Real Estate	-	-
Technology	-	4.3%
Utilities	-	15.4%

Return for Risk

FXZ vs. FDL — 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

FDL

FDL Risk / Return Rank: 92
FDL Sharpe Ratio Rank: 90
FDL Sortino Ratio Rank: 92
FDL Omega Ratio Rank: 88
FDL Calmar Ratio Rank: 96
FDL Martin Ratio Rank: 91

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. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Materials AlphaDEX Fund (FXZ) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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	FDL	Difference
Sharpe ratio: Return per unit of total volatility	1.57	2.26	-0.69
Sortino ratio: Return per unit of downside risk	2.23	3.41	-1.18
Omega ratio: Gain probability vs. loss probability	1.27	1.39	-0.13
Calmar ratio: Return relative to maximum drawdown	2.81	6.29	-3.48
Martin ratio: Return relative to average drawdown	8.65	14.86	-6.21

FXZ vs. FDL - Sharpe Ratio Comparison

The current FXZ Sharpe Ratio is 1.57, which is lower than the FDL Sharpe Ratio of 2.26. The chart below compares the historical Sharpe Ratios of FXZ and FDL, 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. FDL - Drawdown Comparison

The maximum FXZ drawdown since its inception was -65.46%, roughly equal to the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for FXZ and FDL.

Drawdown Indicators

	FXZ	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-65.46%	-65.93%	+0.47%
Max Drawdown (1Y) Largest decline over 1 year	-12.75%	-4.27%	-8.48%
Max Drawdown (3Y) Largest decline over 3 years	-33.99%	-12.24%	-21.75%
Max Drawdown (5Y) Largest decline over 5 years	-33.99%	-16.46%	-17.53%
Max Drawdown (10Y) Largest decline over 10 years	-49.41%	-41.40%	-8.01%
Current Drawdown Current decline from peak	-9.42%	-1.96%	-7.46%
Average Drawdown Average peak-to-trough decline	-11.31%	-9.59%	-1.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.13%	1.81%	+2.32%

Volatility

FXZ vs. FDL - Volatility Comparison

First Trust Materials AlphaDEX Fund (FXZ) has a higher volatility of 6.20% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 4.96%. This indicates that FXZ's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXZ	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.20%	4.96%	+1.24%
Volatility (6M) Calculated over the trailing 6-month period	17.54%	8.97%	+8.57%
Volatility (1Y) Calculated over the trailing 1-year period	22.84%	11.95%	+10.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.15%	14.44%	+9.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.94%	17.16%	+7.78%

FXZ vs. FDL - Expense Ratio Comparison

FXZ has a 0.67% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

FXZ vs. FDL - Dividend Comparison

FXZ's dividend yield for the trailing twelve months is around 1.42%, less than FDL's 3.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.59%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
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 FDL in my portfolio?

FXZ and FDL have a correlation of 0.34, 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 FDL?

FXZ has higher volatility (6.20%) compared to FDL (4.96%). In terms of maximum drawdown, FXZ dropped -65.46% vs FDL's -65.93%.

Which ETF is better, FXZ or FDL?

On 10-year performance, FDL leads with 11.09% vs 10.25% for FXZ. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 4.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXZ or FDL?

Over the 10-year period, FDL has performed better with a 11.09% 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 FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.67% for FXZ.

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

FDL has the higher dividend yield at 3.59%, compared with 1.42% for FXZ.

What is the main difference between FXZ and FDL?

FXZ is categorized as Materials, while FDL is Large Cap Value Equities. FXZ tracks StrataQuant Materials Index, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.67% for FXZ and 0.43% for FDL.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.26 vs 1.57), 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.