FYC vs. ESML

Last updated Jun 24, 2026

FYC (First Trust Small Cap Growth AlphaDEX Fund) and ESML (iShares ESG Aware MSCI USA Small-Cap ETF) are both Small Cap Growth Equities funds - FYC tracks the NASDAQ AlphaDEX Small Cap Growth Index while ESML tracks the MSCI USA Small Cap Extended ESG Focus Index. Both are passively managed. Over the past 5 years, FYC returned 10.63%/yr vs 7.24%/yr for ESML. Their correlation of 0.94 suggests significant overlap in exposure. FYC charges 0.71%/yr vs 0.17%/yr for ESML.

Performance

FYC vs. ESML - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Small Cap Growth AlphaDEX Fund (FYC) and iShares ESG Aware MSCI USA Small-Cap ETF (ESML). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FYC achieves a 25.16% return, which is significantly higher than ESML's 18.00% return.

FYC

• 1D: -0.75%
• 1M: 5.13%
• YTD: 25.16%
• 6M: 22.15%
• 1Y: 56.72%
• 3Y*: 28.14%
• 5Y*: 10.63%
• 10Y*: 15.10%

ESML

• 1D: -1.21%
• 1M: 3.69%
• YTD: 18.00%
• 6M: 15.71%
• 1Y: 34.55%
• 3Y*: 17.87%
• 5Y*: 7.24%
• 10Y*: —

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

FYC vs. ESML - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FYC First Trust Small Cap Growth AlphaDEX Fund	25.16%	24.24%	23.99%	14.52%	-25.86%	21.64%	32.34%	16.79%	-8.43%
ESML iShares ESG Aware MSCI USA Small-Cap ETF	18.00%	10.62%	12.01%	17.27%	-17.28%	19.28%	19.56%	29.12%	-10.72%

Correlation

The correlation between FYC and ESML is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (All Time) Calculated using the full available price history since Apr 12, 2018	0.94

The correlation between FYC and ESML has been stable across timeframes, ranging from 0.91 to 0.96 - a consistent structural relationship.

FYC vs. ESML - Sectors Allocation Comparison

Sectors	FYC	ESML
Healthcare	25.3%	12.8%
Industrials	18.7%	17.8%
Technology	17.5%	20.8%
Consumer Cyclical	9.5%	10.7%
Financial Services	8.9%	13.8%
Real Estate	5.7%	6.5%
Communication Services	3.7%	2.5%
Basic Materials	3.7%	4.0%
Consumer Defensive	3.2%	3.4%
Energy	2.2%	4.8%
Utilities	1.6%	2.8%

Return for Risk

FYC vs. ESML — Risk / Return Rank

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

FYC

FYC Risk / Return Rank: 85
FYC Sharpe Ratio Rank: 86
FYC Sortino Ratio Rank: 84
FYC Omega Ratio Rank: 76
FYC Calmar Ratio Rank: 91
FYC Martin Ratio Rank: 90

ESML

ESML Risk / Return Rank: 70
ESML Sharpe Ratio Rank: 66
ESML Sortino Ratio Rank: 67
ESML Omega Ratio Rank: 60
ESML Calmar Ratio Rank: 79
ESML Martin Ratio Rank: 78

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.

FYC vs. ESML - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Small Cap Growth AlphaDEX Fund (FYC) and iShares ESG Aware MSCI USA Small-Cap ETF (ESML). 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.

	FYC	ESML	Difference
Sharpe ratio: Return per unit of total volatility	2.64	2.03	+0.61
Sortino ratio: Return per unit of downside risk	3.51	2.88	+0.63
Omega ratio: Gain probability vs. loss probability	1.42	1.34	+0.08
Calmar ratio: Return relative to maximum drawdown	5.44	3.84	+1.60
Martin ratio: Return relative to average drawdown	19.70	14.09	+5.61

FYC vs. ESML - Sharpe Ratio Comparison

The current FYC Sharpe Ratio is 2.64, which is higher than the ESML Sharpe Ratio of 2.03. The chart below compares the historical Sharpe Ratios of FYC and ESML, 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

FYC vs. ESML - Drawdown Comparison

The maximum FYC drawdown since its inception was -47.85%, which is greater than ESML's maximum drawdown of -41.97%. Use the drawdown chart below to compare losses from any high point for FYC and ESML.

Drawdown Indicators

	FYC	ESML	Difference
Max Drawdown Largest peak-to-trough decline	-47.85%	-41.97%	-5.88%
Max Drawdown (1Y) Largest decline over 1 year	-10.48%	-9.04%	-1.44%
Max Drawdown (3Y) Largest decline over 3 years	-27.79%	-26.68%	-1.11%
Max Drawdown (5Y) Largest decline over 5 years	-35.37%	-28.61%	-6.76%
Max Drawdown (10Y) Largest decline over 10 years	-47.85%	—	—
Current Drawdown Current decline from peak	-0.75%	-1.21%	+0.46%
Average Drawdown Average peak-to-trough decline	-9.63%	-8.91%	-0.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	2.46%	+0.43%

Volatility

FYC vs. ESML - Volatility Comparison

First Trust Small Cap Growth AlphaDEX Fund (FYC) has a higher volatility of 7.00% compared to iShares ESG Aware MSCI USA Small-Cap ETF (ESML) at 5.52%. This indicates that FYC's price experiences larger fluctuations and is considered to be riskier than ESML based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FYC	ESML	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.00%	5.52%	+1.48%
Volatility (6M) Calculated over the trailing 6-month period	15.77%	12.38%	+3.39%
Volatility (1Y) Calculated over the trailing 1-year period	21.65%	17.15%	+4.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.73%	21.29%	+2.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.61%	23.39%	+1.22%

FYC vs. ESML - Expense Ratio Comparison

FYC has a 0.71% expense ratio, which is higher than ESML's 0.17% expense ratio.

Dividends

FYC vs. ESML - Dividend Comparison

FYC's dividend yield for the trailing twelve months is around 0.06%, less than ESML's 0.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESML iShares ESG Aware MSCI USA Small-Cap ETF	0.92%	1.08%	1.22%	1.31%	1.46%	0.94%	0.99%	1.10%	1.07%	0.00%	0.00%	0.00%
FYC First Trust Small Cap Growth AlphaDEX Fund	0.06%	0.08%	0.72%	0.58%	0.00%	0.63%	0.12%	0.39%	0.09%	0.10%	0.31%	0.21%

Frequently Asked Questions

Can I hold both FYC and ESML in my portfolio?

With a correlation of 0.91, FYC and ESML move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FYC or ESML?

FYC has higher volatility (7.00%) compared to ESML (5.52%). In terms of maximum drawdown, FYC dropped -47.85% vs ESML's -41.97%.

Which ETF is better, FYC or ESML?

On 5-year performance, FYC leads with 10.63% vs 7.24% for ESML. On fees, ESML is cheaper at 0.17% per year. On volatility, ESML has been the lower-risk option at 5.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FYC or ESML?

Over the 5-year period, FYC has performed better with a 10.63% return vs 7.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FYC or ESML?

ESML is cheaper with a 0.17% expense ratio, compared with 0.71% for FYC.

Which ETF pays a higher dividend yield, FYC or ESML?

ESML has the higher dividend yield at 0.92%, compared with 0.06% for FYC.

What is the main difference between FYC and ESML?

FYC tracks NASDAQ AlphaDEX Small Cap Growth Index, while ESML tracks MSCI USA Small Cap Extended ESG Focus Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.71% for FYC and 0.17% for ESML.

Which has better risk-adjusted returns?

FYC currently has the higher Sharpe Ratio (2.64 vs 2.03), 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.