FXZ vs. GRID

Last updated Jun 4, 2026

FXZ (First Trust Materials AlphaDEX Fund) and GRID (First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index) are both exchange-traded funds - FXZ is a Materials fund tracking the StrataQuant Materials Index, while GRID is a Alternative Energy Equities fund tracking the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. Both are passively managed. Over the past 10 years, FXZ returned 11.67%/yr vs 19.76%/yr for GRID. A 0.66 correlation means they provide meaningful diversification when combined. FXZ charges 0.67%/yr vs 0.70%/yr for GRID.

Performance

FXZ vs. GRID - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Materials AlphaDEX Fund (FXZ) and First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID). 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 29.62% return and GRID slightly lower at 28.91%. Over the past 10 years, FXZ has underperformed GRID with an annualized return of 11.67%, while GRID has yielded a comparatively higher 19.76% annualized return.

FXZ

• 1D: -0.40%
• 1M: 5.70%
• YTD: 29.62%
• 6M: 33.34%
• 1Y: 53.31%
• 3Y*: 13.07%
• 5Y*: 7.84%
• 10Y*: 11.67%

GRID

• 1D: -0.17%
• 1M: 3.85%
• YTD: 28.91%
• 6M: 29.60%
• 1Y: 51.55%
• 3Y*: 26.27%
• 5Y*: 17.84%
• 10Y*: 19.76%

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

FXZ vs. GRID - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXZ First Trust Materials AlphaDEX Fund	29.62%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%
GRID First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index	28.91%	29.65%	15.18%	21.57%	-13.89%	27.65%	48.84%	42.80%	-22.69%	27.44%

Correlation

The correlation between FXZ and GRID is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.65
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Nov 18, 2009	0.66

The correlation between FXZ and GRID has been stable across timeframes, ranging from 0.61 to 0.68 - a consistent structural relationship.

FXZ vs. GRID - Sectors Allocation Comparison

Sectors	FXZ	GRID
Basic Materials	75.7%	0.0%
Industrials	20.4%	65.2%
Consumer Cyclical	3.9%	3.5%
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	11.0%
Utilities	-	20.4%

Return for Risk

FXZ vs. GRID — Risk / Return Rank

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

FXZ

FXZ Risk / Return Rank: 74
FXZ Sharpe Ratio Rank: 75
FXZ Sortino Ratio Rank: 70
FXZ Omega Ratio Rank: 66
FXZ Calmar Ratio Rank: 81
FXZ Martin Ratio Rank: 80

GRID

GRID Risk / Return Rank: 79
GRID Sharpe Ratio Rank: 81
GRID Sortino Ratio Rank: 76
GRID Omega Ratio Rank: 74
GRID Calmar Ratio Rank: 82
GRID Martin Ratio Rank: 82

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.

FXZ vs. GRID - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Materials AlphaDEX Fund (FXZ) and First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID). 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.

	FXZ	GRID	Difference
Sharpe ratio: Return per unit of total volatility	2.45	2.67	-0.22
Sortino ratio: Return per unit of downside risk	3.21	3.50	-0.28
Omega ratio: Gain probability vs. loss probability	1.40	1.45	-0.05
Calmar ratio: Return relative to maximum drawdown	4.20	4.42	-0.22
Martin ratio: Return relative to average drawdown	15.80	16.72	-0.92
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXZ vs. GRID - Sharpe Ratio Comparison

The current FXZ Sharpe Ratio is 2.45, which is comparable to the GRID Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of FXZ and GRID, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FXZ	GRID	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.45	2.67	-0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.33	0.85	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.87	-0.40
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.57	-0.22

Drawdowns

FXZ vs. GRID - Drawdown Comparison

The maximum FXZ drawdown since its inception was -65.46%, which is greater than GRID's maximum drawdown of -40.56%. Use the drawdown chart below to compare losses from any high point for FXZ and GRID.

Drawdown Indicators

	FXZ	GRID	Difference
Max Drawdown Largest peak-to-trough decline	-65.46%	-40.56%	-24.90%
Max Drawdown (1Y) Largest decline over 1 year	-12.75%	-11.73%	-1.02%
Max Drawdown (3Y) Largest decline over 3 years	-33.99%	-20.77%	-13.22%
Max Drawdown (5Y) Largest decline over 5 years	-33.99%	-29.64%	-4.35%
Max Drawdown (10Y) Largest decline over 10 years	-49.41%	-40.56%	-8.85%
Current Drawdown Current decline from peak	-0.40%	-1.33%	+0.93%
Average Drawdown Average peak-to-trough decline	-11.36%	-8.43%	-2.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.38%	3.09%	+0.29%

Volatility

FXZ vs. GRID - Volatility Comparison

The current volatility for First Trust Materials AlphaDEX Fund (FXZ) is 7.04%, while First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) has a volatility of 7.95%. This indicates that FXZ experiences smaller price fluctuations and is considered to be less risky than GRID based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXZ	GRID	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.04%	7.95%	-0.91%
Volatility (6M) Calculated over the trailing 6-month period	16.40%	16.08%	+0.32%
Volatility (1Y) Calculated over the trailing 1-year period	21.87%	19.39%	+2.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.13%	21.00%	+3.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.87%	22.81%	+2.06%

FXZ vs. GRID - Expense Ratio Comparison

FXZ has a 0.67% expense ratio, which is lower than GRID's 0.70% expense ratio.

Dividends

FXZ vs. GRID - Dividend Comparison

FXZ's dividend yield for the trailing twelve months is around 1.38%, more than GRID's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXZ First Trust Materials AlphaDEX Fund	1.38%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%
GRID First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index	0.77%	1.01%	1.06%	1.23%	1.26%	0.63%	0.68%	1.26%	1.28%	1.07%	1.07%	1.23%

Frequently Asked Questions

Can I hold both FXZ and GRID in my portfolio?

FXZ and GRID have a correlation of 0.61, 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 GRID?

GRID has higher volatility (7.95%) compared to FXZ (7.04%). In terms of maximum drawdown, FXZ dropped -65.46% vs GRID's -40.56%.

Which ETF is better, FXZ or GRID?

On 10-year performance, GRID leads with 19.76% vs 11.67% for FXZ. On fees, FXZ is cheaper at 0.67% per year. On volatility, FXZ has been the lower-risk option at 7.04%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXZ or GRID?

Over the 10-year period, GRID has performed better with a 19.76% return vs 11.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXZ or GRID?

FXZ is cheaper with a 0.67% expense ratio, compared with 0.70% for GRID.

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

FXZ has the higher dividend yield at 1.38%, compared with 0.77% for GRID.

What is the main difference between FXZ and GRID?

FXZ is categorized as Materials, while GRID is Alternative Energy Equities. FXZ tracks StrataQuant Materials Index, while GRID tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. Their fees differ too: 0.67% for FXZ and 0.70% for GRID.

Which has better risk-adjusted returns?

GRID currently has the higher Sharpe Ratio (2.67 vs 2.45), 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.