FXZ vs. WOOD

Last updated Aug 2, 2026

FXZ (First Trust Materials AlphaDEX Fund) and WOOD (iShares Global Timber & Forestry ETF) are both Materials funds - FXZ tracks the StrataQuant Materials Index while WOOD tracks the S&P Global Timber & Forestry Index. Both are passively managed. Over the past 10 years, FXZ returned 10.25%/yr vs 6.04%/yr for WOOD. Their 0.76 correlation means they have sometimes moved together and sometimes differently. FXZ charges 0.67%/yr vs 0.46%/yr for WOOD.

Performance

FXZ vs. WOOD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Materials AlphaDEX Fund (FXZ) and iShares Global Timber & Forestry ETF (WOOD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXZ achieves a 18.92% return, which is significantly higher than WOOD's 0.84% return. Over the past 10 years, FXZ has outperformed WOOD with an annualized return of 10.25%, while WOOD has yielded a comparatively lower 6.04% 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%

WOOD

• 1D: -0.18%
• 1M: 7.81%
• 6M: -2.77%
• YTD: 0.84%
• 1Y: 3.37%
• 3Y*: 0.18%
• 5Y*: -2.02%
• 10Y*: 6.04%
• ALL TIME*: 4.07%

*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)
FXZ First Trust Materials AlphaDEX Fund	$3.44M	$3.68M	$4.56M
WOOD iShares Global Timber & Forestry ETF	$922.15K	$727.96K	$1.06M

FXZ vs. WOOD - 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%
WOOD iShares Global Timber & Forestry ETF	0.84%	-3.27%	-4.21%	13.84%	-19.39%	17.03%	20.36%	19.75%	-17.73%	34.49%

Correlation

The correlation between FXZ and WOOD is 0.64, 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.	0.64
Correlation (3Y) Balances recent behavior with more history.	0.66
Correlation (5Y) Shows whether the relationship held over a longer period.	0.71
Correlation (10Y) Provides a long-term view across more market conditions.	0.72
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008	0.76

The correlation between FXZ and WOOD shifts across timeframes, from 0.64 (1 year) to 0.76 (all time), reflecting how their relationship changes across market environments.

FXZ vs. WOOD - Sectors Allocation Comparison

Sectors	FXZ	WOOD
Basic Materials	72.3%	65.3%
Industrials	23.4%	-
Consumer Cyclical	4.3%	22.5%
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	12.2%
Technology	-	-
Utilities	-	-

Return for Risk

FXZ vs. WOOD — 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

WOOD

WOOD Risk / Return Rank: 15
WOOD Sharpe Ratio Rank: 16
WOOD Sortino Ratio Rank: 15
WOOD Omega Ratio Rank: 15
WOOD Calmar Ratio Rank: 14
WOOD Martin Ratio Rank: 13

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. WOOD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Materials AlphaDEX Fund (FXZ) and iShares Global Timber & Forestry ETF (WOOD). 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	WOOD	Difference
Sharpe ratio: Return per unit of total volatility	1.57	0.21	+1.36
Sortino ratio: Return per unit of downside risk	2.23	0.44	+1.79
Omega ratio: Gain probability vs. loss probability	1.27	1.05	+0.22
Calmar ratio: Return relative to maximum drawdown	2.81	0.18	+2.62
Martin ratio: Return relative to average drawdown	8.65	0.34	+8.31

FXZ vs. WOOD - Sharpe Ratio Comparison

The current FXZ Sharpe Ratio is 1.57, which is higher than the WOOD Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of FXZ and WOOD, 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. WOOD - Drawdown Comparison

The maximum FXZ drawdown since its inception was -65.46%, roughly equal to the maximum WOOD drawdown of -63.25%. Use the drawdown chart below to compare losses from any high point for FXZ and WOOD.

Drawdown Indicators

	FXZ	WOOD	Difference
Max Drawdown Largest peak-to-trough decline	-65.46%	-63.25%	-2.21%
Max Drawdown (1Y) Largest decline over 1 year	-12.75%	-21.64%	+8.89%
Max Drawdown (3Y) Largest decline over 3 years	-33.99%	-22.79%	-11.20%
Max Drawdown (5Y) Largest decline over 5 years	-33.99%	-30.71%	-3.28%
Max Drawdown (10Y) Largest decline over 10 years	-49.41%	-50.20%	+0.79%
Current Drawdown Current decline from peak	-9.42%	-17.97%	+8.55%
Average Drawdown Average peak-to-trough decline	-11.31%	-14.83%	+3.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.13%	11.43%	-7.30%

Volatility

FXZ vs. WOOD - Volatility Comparison

First Trust Materials AlphaDEX Fund (FXZ) has a higher volatility of 6.20% compared to iShares Global Timber & Forestry ETF (WOOD) at 5.30%. This indicates that FXZ's price experiences larger fluctuations and is considered to be riskier than WOOD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXZ	WOOD	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.20%	5.30%	+0.90%
Volatility (6M) Calculated over the trailing 6-month period	17.54%	14.61%	+2.93%
Volatility (1Y) Calculated over the trailing 1-year period	22.84%	18.65%	+4.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.15%	19.74%	+4.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.94%	21.74%	+3.20%

FXZ vs. WOOD - Expense Ratio Comparison

FXZ has a 0.67% expense ratio, which is higher than WOOD's 0.46% expense ratio.

Dividends

FXZ vs. WOOD - Dividend Comparison

FXZ's dividend yield for the trailing twelve months is around 1.42%, less than WOOD's 2.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
WOOD iShares Global Timber & Forestry ETF	2.34%	2.51%	2.09%	1.64%	2.26%	1.24%	0.98%	1.85%	2.82%	1.19%	1.65%	2.04%

Frequently Asked Questions

Can I hold both FXZ and WOOD in my portfolio?

FXZ and WOOD have a correlation of 0.64, 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 WOOD?

FXZ has higher volatility (6.20%) compared to WOOD (5.30%). In terms of maximum drawdown, FXZ dropped -65.46% vs WOOD's -63.25%.

Which ETF is better, FXZ or WOOD?

On 10-year performance, FXZ leads with 10.25% vs 6.04% for WOOD. On fees, WOOD is cheaper at 0.46% per year. On volatility, WOOD has been the lower-risk option at 5.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXZ or WOOD?

Over the 10-year period, FXZ has performed better with a 10.25% return vs 6.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXZ or WOOD?

WOOD is cheaper with a 0.46% expense ratio, compared with 0.67% for FXZ.

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

WOOD has the higher dividend yield at 2.34%, compared with 1.42% for FXZ.

What is the main difference between FXZ and WOOD?

FXZ tracks StrataQuant Materials Index, while WOOD tracks S&P Global Timber & Forestry Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.67% for FXZ and 0.46% for WOOD.

Which has better risk-adjusted returns?

FXZ currently has the higher Sharpe Ratio (1.57 vs 0.21), 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.