GRID vs. FIW
Compare and contrast key facts about First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) and First Trust Water ETF (FIW).
GRID and FIW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. GRID is a passively managed fund by First Trust that tracks the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. It was launched on Nov 17, 2009. FIW is a passively managed fund by First Trust that tracks the performance of the ISE Clean Edge Water Index. It was launched on May 8, 2007. Both GRID and FIW are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: GRID or FIW.
Key characteristics
| GRID | FIW | |
|---|---|---|
| YTD Return | 9.73% | 6.05% |
| 1Y Return | 20.16% | 23.34% |
| 3Y Return (Ann) | 10.58% | 7.68% |
| 5Y Return (Ann) | 21.18% | 14.70% |
| 10Y Return (Ann) | 13.48% | 12.42% |
| Sharpe Ratio | 1.30 | 1.58 |
| Daily Std Dev | 15.61% | 15.05% |
| Max Drawdown | -40.55% | -52.75% |
| Current Drawdown | -0.05% | -1.62% |
Correlation
The correlation between GRID and FIW is 0.69, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
GRID vs. FIW - Performance Comparison
In the year-to-date period, GRID achieves a 9.73% return, which is significantly higher than FIW's 6.05% return. Over the past 10 years, GRID has outperformed FIW with an annualized return of 13.48%, while FIW has yielded a comparatively lower 12.42% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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GRID vs. FIW - Expense Ratio Comparison
GRID has a 0.70% expense ratio, which is higher than FIW's 0.54% expense ratio.
Risk-Adjusted Performance
GRID vs. FIW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) and First Trust Water ETF (FIW). 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.
Dividends
GRID vs. FIW - Dividend Comparison
GRID's dividend yield for the trailing twelve months is around 1.14%, more than FIW's 0.64% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GRID First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index | 1.14% | 1.23% | 1.26% | 0.63% | 0.68% | 1.26% | 1.28% | 1.07% | 1.07% | 1.23% | 1.46% | 1.35% |
FIW First Trust Water ETF | 0.64% | 0.68% | 0.67% | 0.37% | 0.56% | 0.55% | 0.73% | 1.13% | 0.51% | 0.76% | 0.75% | 0.62% |
Drawdowns
GRID vs. FIW - Drawdown Comparison
The maximum GRID drawdown since its inception was -40.55%, smaller than the maximum FIW drawdown of -52.75%. Use the drawdown chart below to compare losses from any high point for GRID and FIW. For additional features, visit the drawdowns tool.
Volatility
GRID vs. FIW - Volatility Comparison
First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) and First Trust Water ETF (FIW) have volatilities of 3.87% and 3.88%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.