LDSF vs. ZTWO

Last updated Jun 5, 2026

LDSF (First Trust Low Duration Strategic Focus ETF) and ZTWO (F/M 2-Year Investment Grade Corporate Bond ETF) are both Short-Term Bond funds. LDSF is actively managed, while ZTWO is passively managed. Over the past year, LDSF returned 4.84% vs 3.94% for ZTWO. A 0.64 correlation means they provide meaningful diversification when combined. LDSF charges 0.87%/yr vs 0.15%/yr for ZTWO.

Performance

LDSF vs. ZTWO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Low Duration Strategic Focus ETF (LDSF) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LDSF achieves a 0.84% return, which is significantly lower than ZTWO's 0.93% return.

LDSF

• 1D: 0.10%
• 1M: 0.15%
• YTD: 0.84%
• 6M: 1.21%
• 1Y: 4.84%
• 3Y*: 5.37%
• 5Y*: 2.40%
• 10Y*: —

ZTWO

• 1D: 0.04%
• 1M: 0.28%
• YTD: 0.93%
• 6M: 1.30%
• 1Y: 3.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

LDSF vs. ZTWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LDSF First Trust Low Duration Strategic Focus ETF	0.84%	6.82%	0.17%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	0.93%	5.49%	0.36%

Correlation

The correlation between LDSF and ZTWO is 0.62, 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	0.62
Correlation (All Time) Calculated using the full available price history since Dec 20, 2024	0.64

The correlation between LDSF and ZTWO has been stable across timeframes, ranging from 0.62 to 0.64 - a consistent structural relationship.

Return for Risk

LDSF vs. ZTWO — Risk / Return Rank

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

LDSF

LDSF Risk / Return Rank: 72
LDSF Sharpe Ratio Rank: 75
LDSF Sortino Ratio Rank: 82
LDSF Omega Ratio Rank: 82
LDSF Calmar Ratio Rank: 57
LDSF Martin Ratio Rank: 66

ZTWO

ZTWO Risk / Return Rank: 90
ZTWO Sharpe Ratio Rank: 90
ZTWO Sortino Ratio Rank: 94
ZTWO Omega Ratio Rank: 93
ZTWO Calmar Ratio Rank: 82
ZTWO Martin Ratio Rank: 89

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.

LDSF vs. ZTWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Strategic Focus ETF (LDSF) and F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO). 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.

	LDSF	ZTWO	Difference
Sharpe ratio: Return per unit of total volatility	2.38	3.03	-0.65
Sortino ratio: Return per unit of downside risk	3.63	4.86	-1.23
Omega ratio: Gain probability vs. loss probability	1.49	1.63	-0.14
Calmar ratio: Return relative to maximum drawdown	2.79	4.24	-1.44
Martin ratio: Return relative to average drawdown	11.88	20.10	-8.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LDSF vs. ZTWO - Sharpe Ratio Comparison

The current LDSF Sharpe Ratio is 2.38, which is comparable to the ZTWO Sharpe Ratio of 3.03. The chart below compares the historical Sharpe Ratios of LDSF and ZTWO, 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

	LDSF	ZTWO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.38	3.03	-0.65
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.81	3.17	-2.36

Drawdowns

LDSF vs. ZTWO - Drawdown Comparison

The maximum LDSF drawdown since its inception was -8.56%, which is greater than ZTWO's maximum drawdown of -0.93%. Use the drawdown chart below to compare losses from any high point for LDSF and ZTWO.

Drawdown Indicators

	LDSF	ZTWO	Difference
Max Drawdown Largest peak-to-trough decline	-8.56%	-0.93%	-7.63%
Max Drawdown (1Y) Largest decline over 1 year	-1.74%	-0.93%	-0.81%
Max Drawdown (3Y) Largest decline over 3 years	-1.74%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-7.83%	—	—
Current Drawdown Current decline from peak	-0.16%	-0.07%	-0.09%
Average Drawdown Average peak-to-trough decline	-1.46%	-0.10%	-1.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.41%	0.20%	+0.21%

Volatility

LDSF vs. ZTWO - Volatility Comparison

First Trust Low Duration Strategic Focus ETF (LDSF) has a higher volatility of 0.70% compared to F/M 2-Year Investment Grade Corporate Bond ETF (ZTWO) at 0.42%. This indicates that LDSF's price experiences larger fluctuations and is considered to be riskier than ZTWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LDSF	ZTWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.70%	0.42%	+0.28%
Volatility (6M) Calculated over the trailing 6-month period	1.66%	0.97%	+0.69%
Volatility (1Y) Calculated over the trailing 1-year period	2.06%	1.31%	+0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.08%	1.49%	+1.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.18%	1.49%	+1.69%

LDSF vs. ZTWO - Expense Ratio Comparison

LDSF has a 0.87% expense ratio, which is higher than ZTWO's 0.15% expense ratio.

Dividends

LDSF vs. ZTWO - Dividend Comparison

LDSF's dividend yield for the trailing twelve months is around 4.63%, more than ZTWO's 4.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
LDSF First Trust Low Duration Strategic Focus ETF	4.63%	4.52%	4.53%	4.08%	2.61%	1.97%	2.65%	3.06%
ZTWO F/M 2-Year Investment Grade Corporate Bond ETF	4.12%	4.31%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LDSF and ZTWO in my portfolio?

LDSF and ZTWO have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LDSF or ZTWO?

LDSF has higher volatility (0.70%) compared to ZTWO (0.42%). In terms of maximum drawdown, LDSF dropped -8.56% vs ZTWO's -0.93%.

Which ETF is better, LDSF or ZTWO?

On 1-year performance, LDSF leads with 4.84% vs 3.94% for ZTWO. On fees, ZTWO is cheaper at 0.15% per year. On volatility, ZTWO has been the lower-risk option at 0.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LDSF or ZTWO?

Over the 1-year period, LDSF has performed better with a 4.84% return vs 3.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LDSF or ZTWO?

ZTWO is cheaper with a 0.15% expense ratio, compared with 0.87% for LDSF.

Which ETF pays a higher dividend yield, LDSF or ZTWO?

LDSF has the higher dividend yield at 4.63%, compared with 4.12% for ZTWO.

What is the main difference between LDSF and ZTWO?

They also come from different issuers: First Trust and F/m. Their fees differ too: 0.87% for LDSF and 0.15% for ZTWO.

Which has better risk-adjusted returns?

ZTWO currently has the higher Sharpe Ratio (3.03 vs 2.38), 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.