MDIV vs. CLSM

Last updated Jun 4, 2026

MDIV (First Trust Multi-Asset Diversified Income Index Fund) and CLSM (Cabana Target Leading Sector Moderate ETF) are both exchange-traded funds - MDIV is a Diversified Portfolio fund tracking the NASDAQ US Multi-Asset Diversified Income Index, while CLSM is a Tactical Allocation fund tracking the Actively Managed. Both are passively managed. Over the past 3 years, MDIV returned 11.41%/yr vs 13.75%/yr for CLSM. At a 0.45 correlation, their price movements are largely independent. MDIV charges 0.73%/yr vs 0.82%/yr for CLSM.

Performance

MDIV vs. CLSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Multi-Asset Diversified Income Index Fund (MDIV) and Cabana Target Leading Sector Moderate ETF (CLSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MDIV achieves a 7.68% return, which is significantly lower than CLSM's 20.45% return.

MDIV

• 1D: -0.65%
• 1M: 0.10%
• YTD: 7.68%
• 6M: 7.38%
• 1Y: 11.03%
• 3Y*: 11.41%
• 5Y*: 5.65%
• 10Y*: 4.66%

CLSM

• 1D: -0.38%
• 1M: 9.23%
• YTD: 20.45%
• 6M: 20.19%
• 1Y: 34.21%
• 3Y*: 13.75%
• 5Y*: —
• 10Y*: —

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

MDIV vs. CLSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
MDIV First Trust Multi-Asset Diversified Income Index Fund	7.68%	3.77%	10.05%	11.50%	-3.86%	1.03%
CLSM Cabana Target Leading Sector Moderate ETF	20.45%	15.32%	1.87%	3.78%	-23.23%	9.10%

Correlation

The correlation between MDIV and CLSM is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.37
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (All Time) Calculated using the full available price history since Jul 14, 2021	0.45

The correlation between MDIV and CLSM shifts across timeframes, from 0.37 (1 year) to 0.49 (3 years), reflecting how their relationship changes across market environments.

MDIV vs. CLSM - Sectors Allocation Comparison

Sectors	MDIV	CLSM
Financial Services	22.4%	0.1%
Real Estate	21.6%	0.0%
Energy	17.6%	0.2%
Utilities	9.6%	0.5%
Consumer Defensive	8.0%	34.8%
Communication Services	3.2%	5.5%
Consumer Cyclical	3.2%	4.4%
Healthcare	1.6%	1.4%
Industrials	1.6%	1.0%
Basic Materials	0.7%	0.4%
Technology	-	51.8%

Return for Risk

MDIV vs. CLSM — Risk / Return Rank

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

MDIV

MDIV Risk / Return Rank: 52
MDIV Sharpe Ratio Rank: 47
MDIV Sortino Ratio Rank: 49
MDIV Omega Ratio Rank: 45
MDIV Calmar Ratio Rank: 65
MDIV Martin Ratio Rank: 53

CLSM

CLSM Risk / Return Rank: 82
CLSM Sharpe Ratio Rank: 83
CLSM Sortino Ratio Rank: 80
CLSM Omega Ratio Rank: 83
CLSM Calmar Ratio Rank: 80
CLSM Martin Ratio Rank: 83

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.

MDIV vs. CLSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Multi-Asset Diversified Income Index Fund (MDIV) and Cabana Target Leading Sector Moderate ETF (CLSM). 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.

	MDIV	CLSM	Difference
Sharpe ratio: Return per unit of total volatility	1.65	2.71	-1.05
Sortino ratio: Return per unit of downside risk	2.44	3.58	-1.15
Omega ratio: Gain probability vs. loss probability	1.29	1.50	-0.21
Calmar ratio: Return relative to maximum drawdown	3.27	4.04	-0.78
Martin ratio: Return relative to average drawdown	9.10	16.72	-7.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MDIV vs. CLSM - Sharpe Ratio Comparison

The current MDIV Sharpe Ratio is 1.65, which is lower than the CLSM Sharpe Ratio of 2.71. The chart below compares the historical Sharpe Ratios of MDIV and CLSM, 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

	MDIV	CLSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.65	2.71	-1.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.31	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.35	0.00

Drawdowns

MDIV vs. CLSM - Drawdown Comparison

The maximum MDIV drawdown since its inception was -48.50%, which is greater than CLSM's maximum drawdown of -27.77%. Use the drawdown chart below to compare losses from any high point for MDIV and CLSM.

Drawdown Indicators

	MDIV	CLSM	Difference
Max Drawdown Largest peak-to-trough decline	-48.50%	-27.77%	-20.73%
Max Drawdown (1Y) Largest decline over 1 year	-3.39%	-8.50%	+5.11%
Max Drawdown (3Y) Largest decline over 3 years	-9.62%	-14.60%	+4.98%
Max Drawdown (5Y) Largest decline over 5 years	-13.02%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-48.50%	—	—
Current Drawdown Current decline from peak	-1.14%	-0.38%	-0.76%
Average Drawdown Average peak-to-trough decline	-4.58%	-16.49%	+11.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.22%	2.05%	-0.83%

Volatility

MDIV vs. CLSM - Volatility Comparison

The current volatility for First Trust Multi-Asset Diversified Income Index Fund (MDIV) is 1.62%, while Cabana Target Leading Sector Moderate ETF (CLSM) has a volatility of 3.58%. This indicates that MDIV experiences smaller price fluctuations and is considered to be less risky than CLSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MDIV	CLSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.62%	3.58%	-1.96%
Volatility (6M) Calculated over the trailing 6-month period	4.32%	10.54%	-6.22%
Volatility (1Y) Calculated over the trailing 1-year period	6.71%	12.70%	-5.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.93%	12.47%	-1.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.23%	12.47%	+2.76%

MDIV vs. CLSM - Expense Ratio Comparison

MDIV has a 0.73% expense ratio, which is lower than CLSM's 0.82% expense ratio.

Dividends

MDIV vs. CLSM - Dividend Comparison

MDIV's dividend yield for the trailing twelve months is around 6.39%, more than CLSM's 0.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CLSM Cabana Target Leading Sector Moderate ETF	0.75%	0.90%	2.13%	2.58%	3.17%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MDIV First Trust Multi-Asset Diversified Income Index Fund	6.39%	6.51%	6.40%	6.08%	6.71%	5.30%	6.00%	5.90%	6.76%	6.04%	6.35%	7.38%

Frequently Asked Questions

Can I hold both MDIV and CLSM in my portfolio?

MDIV and CLSM have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MDIV or CLSM?

CLSM has higher volatility (3.58%) compared to MDIV (1.62%). In terms of maximum drawdown, MDIV dropped -48.50% vs CLSM's -27.77%.

Which ETF is better, MDIV or CLSM?

On 3-year performance, CLSM leads with 13.75% vs 11.41% for MDIV. On fees, MDIV is cheaper at 0.73% per year. On volatility, MDIV has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MDIV or CLSM?

Over the 3-year period, CLSM has performed better with a 13.75% return vs 11.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MDIV or CLSM?

MDIV is cheaper with a 0.73% expense ratio, compared with 0.82% for CLSM.

Which ETF pays a higher dividend yield, MDIV or CLSM?

MDIV has the higher dividend yield at 6.39%, compared with 0.75% for CLSM.

What is the main difference between MDIV and CLSM?

MDIV is categorized as Diversified Portfolio, while CLSM is Tactical Allocation. MDIV tracks NASDAQ US Multi-Asset Diversified Income Index, while CLSM tracks Actively Managed. They also come from different issuers: First Trust and Cabana. Their fees differ too: 0.73% for MDIV and 0.82% for CLSM.

Which has better risk-adjusted returns?

CLSM currently has the higher Sharpe Ratio (2.71 vs 1.65), 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.