IMCG vs. FAD

Last updated Aug 2, 2026

IMCG (iShares Morningstar Mid-Cap Growth ETF) and FAD (First Trust Multi Cap Growth AlphaDEX Fund) are both Mid Cap Growth Equities funds - IMCG tracks the Morningstar US Mid Cap Broad Growth Index while FAD tracks the NASDAQ AlphaDEX Multi Cap Growth Index. Both are passively managed. Over the past 10 years, IMCG returned 14.11%/yr vs 13.70%/yr for FAD. Their correlation of 0.87 means they have usually moved in the same direction. IMCG charges 0.06%/yr vs 0.63%/yr for FAD.

Performance

IMCG vs. FAD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Morningstar Mid-Cap Growth ETF (IMCG) and First Trust Multi Cap Growth AlphaDEX Fund (FAD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IMCG achieves a 19.44% return, which is significantly higher than FAD's 13.47% return. Both investments have delivered pretty close results over the past 10 years, with IMCG having a 14.11% annualized return and FAD not far behind at 13.70%.

IMCG

• 1D: -0.08%
• 1M: -2.22%
• 6M: 16.42%
• YTD: 19.44%
• 1Y: 19.29%
• 3Y*: 15.82%
• 5Y*: 7.06%
• 10Y*: 14.11%
• ALL TIME*: 11.36%

FAD

• 1D: -0.06%
• 1M: -4.21%
• 6M: 10.52%
• YTD: 13.47%
• 1Y: 24.70%
• 3Y*: 19.42%
• 5Y*: 9.39%
• 10Y*: 13.70%
• ALL TIME*: 10.35%

*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)
FAD First Trust Multi Cap Growth AlphaDEX Fund	$3.18M	$2.71M	$2.70M
IMCG iShares Morningstar Mid-Cap Growth ETF	$8.72M	$8.89M	$9.03M

IMCG vs. FAD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IMCG iShares Morningstar Mid-Cap Growth ETF	19.44%	6.55%	18.14%	20.73%	-25.79%	15.39%	45.64%	35.70%	-3.68%	25.57%
FAD First Trust Multi Cap Growth AlphaDEX Fund	13.47%	17.23%	23.85%	19.07%	-24.06%	21.17%	34.92%	26.66%	-6.45%	25.75%

Correlation

The correlation between IMCG and FAD is 0.94, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.94
Correlation (3Y) Balances recent behavior with more history.	0.95
Correlation (5Y) Shows whether the relationship held over a longer period.	0.95
Correlation (10Y) Provides a long-term view across more market conditions.	0.94
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.87

The correlation between IMCG and FAD has been stable across timeframes, ranging from 0.87 to 0.95 - a consistent structural relationship.

IMCG vs. FAD - Sectors Allocation Comparison

Sectors	IMCG	FAD
Technology	25.1%	28.2%
Industrials	24.5%	24.4%
Financial Services	11.7%	7.6%
Consumer Cyclical	9.8%	9.9%
Healthcare	7.2%	15.9%
Basic Materials	6.8%	2.5%
Real Estate	3.9%	3.8%
Utilities	3.3%	1.4%
Energy	3.2%	1.4%
Communication Services	2.2%	2.8%
Consumer Defensive	2.0%	2.1%

Return for Risk

IMCG vs. FAD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IMCG

IMCG Risk / Return Rank: 45
IMCG Sharpe Ratio Rank: 41
IMCG Sortino Ratio Rank: 41
IMCG Omega Ratio Rank: 39
IMCG Calmar Ratio Rank: 48
IMCG Martin Ratio Rank: 55

FAD

FAD Risk / Return Rank: 49
FAD Sharpe Ratio Rank: 44
FAD Sortino Ratio Rank: 44
FAD Omega Ratio Rank: 42
FAD Calmar Ratio Rank: 59
FAD Martin Ratio Rank: 55

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.

IMCG vs. FAD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Morningstar Mid-Cap Growth ETF (IMCG) and First Trust Multi Cap Growth AlphaDEX Fund (FAD). 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.

	IMCG	FAD	Difference
Sharpe ratio: Return per unit of total volatility	1.02	1.09	-0.07
Sortino ratio: Return per unit of downside risk	1.53	1.61	-0.08
Omega ratio: Gain probability vs. loss probability	1.18	1.19	-0.01
Calmar ratio: Return relative to maximum drawdown	1.70	2.10	-0.40
Martin ratio: Return relative to average drawdown	6.41	6.53	-0.12

IMCG vs. FAD - Sharpe Ratio Comparison

The current IMCG Sharpe Ratio is 1.02, which is comparable to the FAD Sharpe Ratio of 1.09. The chart below compares the historical Sharpe Ratios of IMCG and FAD, 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

IMCG vs. FAD - Drawdown Comparison

The maximum IMCG drawdown since its inception was -58.96%, which is greater than FAD's maximum drawdown of -54.33%. Use the drawdown chart below to compare losses from any high point for IMCG and FAD.

Drawdown Indicators

	IMCG	FAD	Difference
Max Drawdown Largest peak-to-trough decline	-58.96%	-54.33%	-4.63%
Max Drawdown (1Y) Largest decline over 1 year	-10.17%	-10.66%	+0.49%
Max Drawdown (3Y) Largest decline over 3 years	-21.92%	-23.55%	+1.63%
Max Drawdown (5Y) Largest decline over 5 years	-35.08%	-31.99%	-3.09%
Max Drawdown (10Y) Largest decline over 10 years	-35.08%	-37.25%	+2.17%
Current Drawdown Current decline from peak	-3.25%	-8.21%	+4.96%
Average Drawdown Average peak-to-trough decline	-9.17%	-9.60%	+0.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.70%	3.42%	-0.72%

Volatility

IMCG vs. FAD - Volatility Comparison

The current volatility for iShares Morningstar Mid-Cap Growth ETF (IMCG) is 3.48%, while First Trust Multi Cap Growth AlphaDEX Fund (FAD) has a volatility of 6.04%. This indicates that IMCG experiences smaller price fluctuations and is considered to be less risky than FAD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IMCG	FAD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.48%	6.04%	-2.56%
Volatility (6M) Calculated over the trailing 6-month period	14.04%	16.39%	-2.35%
Volatility (1Y) Calculated over the trailing 1-year period	16.92%	20.54%	-3.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.36%	20.87%	-0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.55%	21.35%	-0.80%

IMCG vs. FAD - Expense Ratio Comparison

IMCG has a 0.06% expense ratio, which is lower than FAD's 0.63% expense ratio.

Dividends

IMCG vs. FAD - Dividend Comparison

IMCG's dividend yield for the trailing twelve months is around 0.63%, more than FAD's 0.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAD First Trust Multi Cap Growth AlphaDEX Fund	0.10%	0.09%	0.59%	0.51%	0.60%	0.09%	0.32%	0.48%	0.20%	0.22%	0.64%	0.41%
IMCG iShares Morningstar Mid-Cap Growth ETF	0.63%	0.78%	0.78%	0.85%	0.91%	0.41%	0.09%	0.30%	0.35%	0.45%	0.52%	0.38%

Frequently Asked Questions

Can I hold both IMCG and FAD in my portfolio?

With a correlation of 0.94, IMCG and FAD 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, IMCG or FAD?

FAD has higher volatility (6.04%) compared to IMCG (3.48%). In terms of maximum drawdown, IMCG dropped -58.96% vs FAD's -54.33%.

Which ETF is better, IMCG or FAD?

On 10-year performance, IMCG leads with 14.11% vs 13.70% for FAD. On fees, IMCG is cheaper at 0.06% per year. On volatility, IMCG has been the lower-risk option at 3.48%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IMCG or FAD?

Over the 10-year period, IMCG has performed better with a 14.11% return vs 13.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IMCG or FAD?

IMCG is cheaper with a 0.06% expense ratio, compared with 0.63% for FAD.

Which ETF pays a higher dividend yield, IMCG or FAD?

IMCG has the higher dividend yield at 0.63%, compared with 0.10% for FAD.

What is the main difference between IMCG and FAD?

IMCG tracks Morningstar US Mid Cap Broad Growth Index, while FAD tracks NASDAQ AlphaDEX Multi Cap Growth Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.06% for IMCG and 0.63% for FAD.

Which has better risk-adjusted returns?

FAD currently has the higher Sharpe Ratio (1.09 vs 1.02), 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.