IXG vs. FXO

Last updated Jun 23, 2026

IXG (iShares Global Financials ETF) and FXO (First Trust Financials AlphaDEX Fund) are both Financials Equities funds - IXG tracks the S&P Global Financials Sector Index while FXO tracks the StrataQuant Financials Index. Both are passively managed. Over the past 10 years, IXG returned 13.29%/yr vs 13.20%/yr for FXO. Their correlation of 0.85 suggests significant overlap in exposure. IXG charges 0.46%/yr vs 0.62%/yr for FXO.

Performance

IXG vs. FXO - Performance Comparison

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

Returns By Period

In the year-to-date period, IXG achieves a 5.43% return, which is significantly higher than FXO's 2.70% return. Both investments have delivered pretty close results over the past 10 years, with IXG having a 13.29% annualized return and FXO not far behind at 13.20%.

IXG

• 1D: 0.54%
• 1M: 4.22%
• YTD: 5.43%
• 6M: 4.86%
• 1Y: 20.55%
• 3Y*: 24.97%
• 5Y*: 13.37%
• 10Y*: 13.29%

FXO

• 1D: 0.72%
• 1M: 3.42%
• YTD: 2.70%
• 6M: 0.52%
• 1Y: 16.26%
• 3Y*: 21.78%
• 5Y*: 9.95%
• 10Y*: 13.20%

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

IXG vs. FXO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IXG iShares Global Financials ETF	5.43%	28.54%	25.69%	14.97%	-8.97%	25.07%	-2.99%	24.60%	-16.33%	23.78%
FXO First Trust Financials AlphaDEX Fund	2.70%	13.59%	27.72%	9.28%	-9.24%	37.76%	5.95%	26.31%	-11.72%	17.88%

Correlation

The correlation between IXG and FXO is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (10Y) Calculated over the trailing 10-year period	0.88
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.85

The correlation between IXG and FXO has been stable across timeframes, ranging from 0.81 to 0.89 - a consistent structural relationship.

IXG vs. FXO - Sectors Allocation Comparison

Sectors	IXG	FXO
Financial Services	98.0%	94.5%
Technology	1.1%	0.6%
Industrials	0.2%	-
Energy	0.1%	-
Healthcare	0.1%	-
Consumer Cyclical	0.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Real Estate	-	5.0%
Utilities	-	-

Return for Risk

IXG vs. FXO — Risk / Return Rank

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

IXG

IXG Risk / Return Rank: 41
IXG Sharpe Ratio Rank: 43
IXG Sortino Ratio Rank: 44
IXG Omega Ratio Rank: 40
IXG Calmar Ratio Rank: 37
IXG Martin Ratio Rank: 41

FXO

FXO Risk / Return Rank: 29
FXO Sharpe Ratio Rank: 30
FXO Sortino Ratio Rank: 28
FXO Omega Ratio Rank: 27
FXO Calmar Ratio Rank: 29
FXO Martin Ratio Rank: 30

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.

IXG vs. FXO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Financials ETF (IXG) and First Trust Financials AlphaDEX Fund (FXO). 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.

	IXG	FXO	Difference
Sharpe ratio: Return per unit of total volatility	1.48	1.04	+0.44
Sortino ratio: Return per unit of downside risk	2.17	1.48	+0.68
Omega ratio: Gain probability vs. loss probability	1.25	1.18	+0.07
Calmar ratio: Return relative to maximum drawdown	1.82	1.39	+0.43
Martin ratio: Return relative to average drawdown	6.43	4.15	+2.28

IXG vs. FXO - Sharpe Ratio Comparison

The current IXG Sharpe Ratio is 1.48, which is higher than the FXO Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of IXG and FXO, 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

IXG vs. FXO - Drawdown Comparison

The maximum IXG drawdown since its inception was -78.42%, which is greater than FXO's maximum drawdown of -71.30%. Use the drawdown chart below to compare losses from any high point for IXG and FXO.

Drawdown Indicators

	IXG	FXO	Difference
Max Drawdown Largest peak-to-trough decline	-78.42%	-71.30%	-7.12%
Max Drawdown (1Y) Largest decline over 1 year	-11.33%	-11.72%	+0.39%
Max Drawdown (3Y) Largest decline over 3 years	-13.54%	-21.35%	+7.81%
Max Drawdown (5Y) Largest decline over 5 years	-27.20%	-28.80%	+1.60%
Max Drawdown (10Y) Largest decline over 10 years	-43.47%	-48.55%	+5.08%
Current Drawdown Current decline from peak	-0.22%	-0.37%	+0.15%
Average Drawdown Average peak-to-trough decline	-19.71%	-13.08%	-6.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.20%	3.93%	-0.73%

Volatility

IXG vs. FXO - Volatility Comparison

iShares Global Financials ETF (IXG) has a higher volatility of 4.12% compared to First Trust Financials AlphaDEX Fund (FXO) at 3.92%. This indicates that IXG's price experiences larger fluctuations and is considered to be riskier than FXO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IXG	FXO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.12%	3.92%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	11.32%	10.98%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	13.92%	15.66%	-1.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	21.86%	-4.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.11%	24.14%	-4.03%

IXG vs. FXO - Expense Ratio Comparison

IXG has a 0.46% expense ratio, which is lower than FXO's 0.62% expense ratio.

Dividends

IXG vs. FXO - Dividend Comparison

IXG's dividend yield for the trailing twelve months is around 2.26%, more than FXO's 2.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXO First Trust Financials AlphaDEX Fund	2.10%	1.78%	1.97%	2.98%	2.49%	1.91%	2.60%	1.72%	2.60%	1.62%	1.35%	1.51%
IXG iShares Global Financials ETF	2.26%	2.04%	2.64%	2.62%	3.71%	1.69%	2.13%	2.87%	3.14%	2.12%	2.21%	2.79%

Frequently Asked Questions

Can I hold both IXG and FXO in my portfolio?

IXG and FXO have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IXG or FXO?

IXG has higher volatility (4.12%) compared to FXO (3.92%). In terms of maximum drawdown, IXG dropped -78.42% vs FXO's -71.30%.

Which ETF is better, IXG or FXO?

On 10-year performance, IXG leads with 13.29% vs 13.20% for FXO. On fees, IXG is cheaper at 0.46% per year. On volatility, FXO has been the lower-risk option at 3.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IXG or FXO?

Over the 10-year period, IXG has performed better with a 13.29% return vs 13.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IXG or FXO?

IXG is cheaper with a 0.46% expense ratio, compared with 0.62% for FXO.

Which ETF pays a higher dividend yield, IXG or FXO?

IXG has the higher dividend yield at 2.26%, compared with 2.10% for FXO.

What is the main difference between IXG and FXO?

IXG tracks S&P Global Financials Sector Index, while FXO tracks StrataQuant Financials Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.46% for IXG and 0.62% for FXO.

Which has better risk-adjusted returns?

IXG currently has the higher Sharpe Ratio (1.48 vs 1.04), 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.