IPO vs. FAD

Last updated Jun 4, 2026

IPO (Renaissance IPO ETF) and FAD (First Trust Multi Cap Growth AlphaDEX Fund) are both Mid Cap Growth Equities funds - IPO tracks the Renaissance IPO Index while FAD tracks the NASDAQ AlphaDEX Multi Cap Growth Index. Both are passively managed. Over the past 10 years, IPO returned 11.27%/yr vs 14.53%/yr for FAD. A 0.79 correlation means they provide meaningful diversification when combined. IPO charges 0.60%/yr vs 0.63%/yr for FAD.

Performance

IPO vs. FAD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Renaissance IPO ETF (IPO) 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, IPO achieves a 24.62% return, which is significantly higher than FAD's 17.25% return. Over the past 10 years, IPO has underperformed FAD with an annualized return of 11.27%, while FAD has yielded a comparatively higher 14.53% annualized return.

IPO

• 1D: -1.25%
• 1M: 13.25%
• YTD: 24.62%
• 6M: 22.81%
• 1Y: 31.54%
• 3Y*: 23.03%
• 5Y*: -1.29%
• 10Y*: 11.27%

FAD

• 1D: -0.15%
• 1M: 6.70%
• YTD: 17.25%
• 6M: 17.16%
• 1Y: 34.52%
• 3Y*: 24.16%
• 5Y*: 11.25%
• 10Y*: 14.53%

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

IPO vs. FAD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IPO Renaissance IPO ETF	24.62%	5.45%	15.68%	52.55%	-57.26%	-10.31%	107.88%	34.11%	-17.24%	37.16%
FAD First Trust Multi Cap Growth AlphaDEX Fund	17.25%	17.23%	23.85%	19.07%	-24.06%	21.17%	34.92%	26.66%	-6.45%	25.75%

Correlation

The correlation between IPO and FAD is 0.75, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (10Y) Calculated over the trailing 10-year period	0.79
Correlation (All Time) Calculated using the full available price history since Oct 17, 2013	0.79

The correlation between IPO and FAD has been stable across timeframes, ranging from 0.75 to 0.82 - a consistent structural relationship.

IPO vs. FAD - Sectors Allocation Comparison

Sectors	IPO	FAD
Technology	40.3%	24.1%
Consumer Cyclical	14.4%	10.8%
Healthcare	10.8%	15.4%
Consumer Defensive	9.2%	2.4%
Industrials	9.1%	26.1%
Communication Services	6.6%	3.1%
Financial Services	4.3%	8.0%
Real Estate	4.0%	4.1%
Energy	1.1%	1.6%
Utilities	0.3%	1.6%
Basic Materials	-	3.0%

Return for Risk

IPO vs. FAD — Risk / Return Rank

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

IPO

IPO Risk / Return Rank: 27
IPO Sharpe Ratio Rank: 30
IPO Sortino Ratio Rank: 29
IPO Omega Ratio Rank: 28
IPO Calmar Ratio Rank: 25
IPO Martin Ratio Rank: 22

FAD

FAD Risk / Return Rank: 59
FAD Sharpe Ratio Rank: 55
FAD Sortino Ratio Rank: 53
FAD Omega Ratio Rank: 51
FAD Calmar Ratio Rank: 66
FAD Martin Ratio Rank: 68

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.

IPO vs. FAD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Renaissance IPO ETF (IPO) 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.

	IPO	FAD	Difference
Sharpe ratio: Return per unit of total volatility	1.10	1.88	-0.78
Sortino ratio: Return per unit of downside risk	1.62	2.59	-0.98
Omega ratio: Gain probability vs. loss probability	1.19	1.32	-0.13
Calmar ratio: Return relative to maximum drawdown	1.21	3.25	-2.04
Martin ratio: Return relative to average drawdown	2.71	12.54	-9.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IPO vs. FAD - Sharpe Ratio Comparison

The current IPO Sharpe Ratio is 1.10, which is lower than the FAD Sharpe Ratio of 1.88. The chart below compares the historical Sharpe Ratios of IPO 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.

Sharpe Ratios by Period

	IPO	FAD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.10	1.88	-0.78
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.04	0.55	-0.59
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.36	0.69	-0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.50	-0.20

Drawdowns

IPO vs. FAD - Drawdown Comparison

The maximum IPO drawdown since its inception was -68.76%, which is greater than FAD's maximum drawdown of -54.33%. Use the drawdown chart below to compare losses from any high point for IPO and FAD.

Drawdown Indicators

	IPO	FAD	Difference
Max Drawdown Largest peak-to-trough decline	-68.76%	-54.33%	-14.43%
Max Drawdown (1Y) Largest decline over 1 year	-26.24%	-10.66%	-15.58%
Max Drawdown (3Y) Largest decline over 3 years	-32.04%	-23.55%	-8.49%
Max Drawdown (5Y) Largest decline over 5 years	-66.02%	-31.99%	-34.03%
Max Drawdown (10Y) Largest decline over 10 years	-68.76%	-37.25%	-31.51%
Current Drawdown Current decline from peak	-24.70%	-0.15%	-24.55%
Average Drawdown Average peak-to-trough decline	-22.93%	-9.64%	-13.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.67%	2.76%	+8.91%

Volatility

IPO vs. FAD - Volatility Comparison

Renaissance IPO ETF (IPO) has a higher volatility of 9.64% compared to First Trust Multi Cap Growth AlphaDEX Fund (FAD) at 6.01%. This indicates that IPO's price experiences larger fluctuations and is considered to be riskier than FAD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IPO	FAD	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.64%	6.01%	+3.63%
Volatility (6M) Calculated over the trailing 6-month period	22.28%	14.14%	+8.14%
Volatility (1Y) Calculated over the trailing 1-year period	28.91%	18.50%	+10.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.85%	20.53%	+15.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.50%	21.18%	+10.32%

IPO vs. FAD - Expense Ratio Comparison

IPO has a 0.60% expense ratio, which is lower than FAD's 0.63% expense ratio.

Dividends

IPO vs. FAD - Dividend Comparison

IPO's dividend yield for the trailing twelve months is around 0.46%, more than FAD's 0.09% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FAD First Trust Multi Cap Growth AlphaDEX Fund	0.09%	0.09%	0.59%	0.51%	0.60%	0.09%	0.32%	0.48%	0.20%	0.22%	0.64%	0.41%
IPO Renaissance IPO ETF	0.46%	0.66%	0.12%	0.00%	0.00%	0.00%	0.10%	0.26%	0.49%	0.43%	0.40%	0.11%

Frequently Asked Questions

Can I hold both IPO and FAD in my portfolio?

IPO and FAD have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IPO or FAD?

IPO has higher volatility (9.64%) compared to FAD (6.01%). In terms of maximum drawdown, IPO dropped -68.76% vs FAD's -54.33%.

Which ETF is better, IPO or FAD?

On 10-year performance, FAD leads with 14.53% vs 11.27% for IPO. On fees, IPO is cheaper at 0.60% per year. On volatility, FAD has been the lower-risk option at 6.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IPO or FAD?

Over the 10-year period, FAD has performed better with a 14.53% return vs 11.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IPO or FAD?

IPO is cheaper with a 0.60% expense ratio, compared with 0.63% for FAD.

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

IPO has the higher dividend yield at 0.46%, compared with 0.09% for FAD.

What is the main difference between IPO and FAD?

IPO tracks Renaissance IPO Index, while FAD tracks NASDAQ AlphaDEX Multi Cap Growth Index. They also come from different issuers: Renaissance Capital and First Trust. Their fees differ too: 0.60% for IPO and 0.63% for FAD.

Which has better risk-adjusted returns?

FAD currently has the higher Sharpe Ratio (1.88 vs 1.10), 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.