FXZ vs. SLX

Last updated Jun 24, 2026

FXZ (First Trust Materials AlphaDEX Fund) and SLX (VanEck Vectors Steel ETF) are both Materials funds - FXZ tracks the StrataQuant Materials Index while SLX tracks the NYSE Arca Steel Index. Both are passively managed. Over the past 10 years, FXZ returned 11.46%/yr vs 18.83%/yr for SLX. Their correlation of 0.82 suggests significant overlap in exposure. FXZ charges 0.67%/yr vs 0.56%/yr for SLX.

Performance

FXZ vs. SLX - Performance Comparison

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

Returns By Period

In the year-to-date period, FXZ achieves a 24.42% return, which is significantly higher than SLX's 19.94% return. Over the past 10 years, FXZ has underperformed SLX with an annualized return of 11.46%, while SLX has yielded a comparatively higher 18.83% annualized return.

FXZ

• 1D: -2.45%
• 1M: 0.61%
• YTD: 24.42%
• 6M: 22.36%
• 1Y: 44.84%
• 3Y*: 11.20%
• 5Y*: 8.66%
• 10Y*: 11.46%

SLX

• 1D: -2.86%
• 1M: -4.58%
• YTD: 19.94%
• 6M: 19.56%
• 1Y: 60.79%
• 3Y*: 21.27%
• 5Y*: 14.70%
• 10Y*: 18.83%

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

FXZ vs. SLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXZ First Trust Materials AlphaDEX Fund	24.42%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%
SLX VanEck Vectors Steel ETF	19.94%	47.45%	-17.94%	31.25%	14.28%	27.69%	20.57%	12.01%	-19.27%	24.59%

Correlation

The correlation between FXZ and SLX is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.82

The correlation between FXZ and SLX has been stable across timeframes, ranging from 0.81 to 0.86 - a consistent structural relationship.

FXZ vs. SLX - Sectors Allocation Comparison

Sectors	FXZ	SLX
Basic Materials	76.9%	93.2%
Industrials	15.4%	3.3%
Consumer Cyclical	5.1%	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	3.5%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

FXZ vs. SLX — Risk / Return Rank

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

FXZ

FXZ Risk / Return Rank: 66
FXZ Sharpe Ratio Rank: 64
FXZ Sortino Ratio Rank: 61
FXZ Omega Ratio Rank: 57
FXZ Calmar Ratio Rank: 74
FXZ Martin Ratio Rank: 73

SLX

SLX Risk / Return Rank: 75
SLX Sharpe Ratio Rank: 81
SLX Sortino Ratio Rank: 75
SLX Omega Ratio Rank: 71
SLX Calmar Ratio Rank: 76
SLX Martin Ratio Rank: 71

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. SLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Materials AlphaDEX Fund (FXZ) and VanEck Vectors Steel ETF (SLX). 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	SLX	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.43	-0.45
Sortino ratio: Return per unit of downside risk	2.68	3.15	-0.47
Omega ratio: Gain probability vs. loss probability	1.33	1.40	-0.07
Calmar ratio: Return relative to maximum drawdown	3.53	3.74	-0.20
Martin ratio: Return relative to average drawdown	13.08	12.59	+0.49

FXZ vs. SLX - Sharpe Ratio Comparison

The current FXZ Sharpe Ratio is 1.98, which is comparable to the SLX Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of FXZ and SLX, 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. SLX - Drawdown Comparison

The maximum FXZ drawdown since its inception was -65.46%, smaller than the maximum SLX drawdown of -82.14%. Use the drawdown chart below to compare losses from any high point for FXZ and SLX.

Drawdown Indicators

	FXZ	SLX	Difference
Max Drawdown Largest peak-to-trough decline	-65.46%	-82.14%	+16.68%
Max Drawdown (1Y) Largest decline over 1 year	-12.75%	-16.35%	+3.60%
Max Drawdown (3Y) Largest decline over 3 years	-33.99%	-27.39%	-6.60%
Max Drawdown (5Y) Largest decline over 5 years	-33.99%	-33.62%	-0.37%
Max Drawdown (10Y) Largest decline over 10 years	-49.41%	-61.64%	+12.23%
Current Drawdown Current decline from peak	-5.23%	-10.38%	+5.15%
Average Drawdown Average peak-to-trough decline	-11.33%	-38.63%	+27.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.44%	4.84%	-1.40%

Volatility

FXZ vs. SLX - Volatility Comparison

The current volatility for First Trust Materials AlphaDEX Fund (FXZ) is 7.83%, while VanEck Vectors Steel ETF (SLX) has a volatility of 9.40%. This indicates that FXZ experiences smaller price fluctuations and is considered to be less risky than SLX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXZ	SLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.83%	9.40%	-1.57%
Volatility (6M) Calculated over the trailing 6-month period	17.24%	19.29%	-2.05%
Volatility (1Y) Calculated over the trailing 1-year period	22.77%	25.19%	-2.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.19%	27.84%	-3.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.93%	30.90%	-5.97%

FXZ vs. SLX - Expense Ratio Comparison

FXZ has a 0.67% expense ratio, which is higher than SLX's 0.56% expense ratio.

Dividends

FXZ vs. SLX - Dividend Comparison

FXZ's dividend yield for the trailing twelve months is around 1.44%, more than SLX's 1.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXZ First Trust Materials AlphaDEX Fund	1.44%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%
SLX VanEck Vectors Steel ETF	1.29%	1.55%	3.56%	2.80%	4.97%	7.07%	1.87%	3.44%	6.26%	2.50%	1.06%	5.35%

Frequently Asked Questions

Can I hold both FXZ and SLX in my portfolio?

FXZ and SLX have a correlation of 0.81, 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 SLX?

SLX has higher volatility (9.40%) compared to FXZ (7.83%). In terms of maximum drawdown, FXZ dropped -65.46% vs SLX's -82.14%.

Which ETF is better, FXZ or SLX?

On 10-year performance, SLX leads with 18.83% vs 11.46% for FXZ. On fees, SLX is cheaper at 0.56% per year. On volatility, FXZ has been the lower-risk option at 7.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXZ or SLX?

Over the 10-year period, SLX has performed better with a 18.83% return vs 11.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXZ or SLX?

SLX is cheaper with a 0.56% expense ratio, compared with 0.67% for FXZ.

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

FXZ has the higher dividend yield at 1.44%, compared with 1.29% for SLX.

What is the main difference between FXZ and SLX?

FXZ tracks StrataQuant Materials Index, while SLX tracks NYSE Arca Steel Index. They also come from different issuers: First Trust and VanEck. Their fees differ too: 0.67% for FXZ and 0.56% for SLX.

Which has better risk-adjusted returns?

SLX currently has the higher Sharpe Ratio (2.43 vs 1.98), 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.