MFLX vs. FDL

Last updated Jun 4, 2026

MFLX (First Trust Flexible Municipal High Income ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - MFLX is a Municipal Bonds fund actively managed by First Trust, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. MFLX is actively managed, while FDL is passively managed. Over the past 5 years, MFLX returned -0.03%/yr vs 12.51%/yr for FDL. At a 0.05 correlation, their price movements are largely independent. MFLX charges 0.88%/yr vs 0.45%/yr for FDL.

Performance

MFLX vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Flexible Municipal High Income ETF (MFLX) and First Trust Morningstar Dividend Leaders Index Fund (FDL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MFLX achieves a 3.33% return, which is significantly lower than FDL's 13.33% return.

MFLX

• 1D: -0.06%
• 1M: 1.21%
• YTD: 3.33%
• 6M: 3.84%
• 1Y: 9.22%
• 3Y*: 5.48%
• 5Y*: -0.03%
• 10Y*: —

FDL

• 1D: -0.26%
• 1M: -0.26%
• YTD: 13.33%
• 6M: 14.76%
• 1Y: 23.67%
• 3Y*: 18.97%
• 5Y*: 12.51%
• 10Y*: 11.24%

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

MFLX vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MFLX First Trust Flexible Municipal High Income ETF	3.33%	3.94%	3.74%	8.98%	-19.94%	8.43%	7.19%	16.89%	-4.66%	5.57%
FDL First Trust Morningstar Dividend Leaders Index Fund	13.33%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between MFLX and FDL is -0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.08
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
Correlation (5Y) Calculated over the trailing 5-year period	0.02
Correlation (All Time) Calculated using the full available price history since Sep 30, 2016	0.05

The correlation between MFLX and FDL shifts across timeframes, from -0.08 (1 year) to 0.05 (all time), reflecting how their relationship changes across market environments.

MFLX vs. FDL - Sectors Allocation Comparison

Sectors	MFLX	FDL
Financial Services	15.2%	15.1%
Basic Materials	-	0.3%
Communication Services	-	10.6%
Consumer Cyclical	-	3.8%
Consumer Defensive	-	14.7%
Energy	-	27.3%
Healthcare	-	16.8%
Industrials	-	3.8%
Real Estate	-	-
Technology	-	1.1%
Utilities	-	6.5%

Return for Risk

MFLX vs. FDL — Risk / Return Rank

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

MFLX

MFLX Risk / Return Rank: 71
MFLX Sharpe Ratio Rank: 69
MFLX Sortino Ratio Rank: 78
MFLX Omega Ratio Rank: 82
MFLX Calmar Ratio Rank: 60
MFLX Martin Ratio Rank: 66

FDL

FDL Risk / Return Rank: 70
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 70
FDL Omega Ratio Rank: 59
FDL Calmar Ratio Rank: 90
FDL Martin Ratio Rank: 71

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.

MFLX vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Flexible Municipal High Income ETF (MFLX) and First Trust Morningstar Dividend Leaders Index Fund (FDL). 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.

	MFLX	FDL	Difference
Sharpe ratio: Return per unit of total volatility	2.27	2.11	+0.16
Sortino ratio: Return per unit of downside risk	3.47	3.25	+0.21
Omega ratio: Gain probability vs. loss probability	1.49	1.37	+0.12
Calmar ratio: Return relative to maximum drawdown	2.97	5.56	-2.59
Martin ratio: Return relative to average drawdown	11.95	13.56	-1.61
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MFLX vs. FDL - Sharpe Ratio Comparison

The current MFLX Sharpe Ratio is 2.27, which is comparable to the FDL Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of MFLX and FDL, 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

	MFLX	FDL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.27	2.11	+0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.00	0.88	-0.88
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.66	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	0.45	-0.26

Drawdowns

MFLX vs. FDL - Drawdown Comparison

The maximum MFLX drawdown since its inception was -26.76%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for MFLX and FDL.

Drawdown Indicators

	MFLX	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-26.76%	-65.93%	+39.17%
Max Drawdown (1Y) Largest decline over 1 year	-3.11%	-4.27%	+1.16%
Max Drawdown (3Y) Largest decline over 3 years	-8.18%	-12.24%	+4.06%
Max Drawdown (5Y) Largest decline over 5 years	-25.88%	-16.46%	-9.42%
Max Drawdown (10Y) Largest decline over 10 years	—	-41.40%	—
Current Drawdown Current decline from peak	-3.78%	-2.18%	-1.60%
Average Drawdown Average peak-to-trough decline	-8.17%	-9.66%	+1.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	1.75%	-0.98%

Volatility

MFLX vs. FDL - Volatility Comparison

The current volatility for First Trust Flexible Municipal High Income ETF (MFLX) is 1.41%, while First Trust Morningstar Dividend Leaders Index Fund (FDL) has a volatility of 2.85%. This indicates that MFLX experiences smaller price fluctuations and is considered to be less risky than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MFLX	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.41%	2.85%	-1.44%
Volatility (6M) Calculated over the trailing 6-month period	2.98%	7.87%	-4.89%
Volatility (1Y) Calculated over the trailing 1-year period	4.08%	11.28%	-7.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.36%	14.31%	-3.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.29%	17.11%	-5.82%

MFLX vs. FDL - Expense Ratio Comparison

MFLX has a 0.88% expense ratio, which is higher than FDL's 0.45% expense ratio.

Dividends

MFLX vs. FDL - Dividend Comparison

MFLX's dividend yield for the trailing twelve months is around 4.08%, more than FDL's 3.68% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.68%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
MFLX First Trust Flexible Municipal High Income ETF	4.08%	4.06%	3.81%	3.65%	4.27%	3.69%	3.21%	2.94%	3.74%	3.80%	0.98%	0.00%

Frequently Asked Questions

Can I hold both MFLX and FDL in my portfolio?

MFLX and FDL have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MFLX or FDL?

FDL has higher volatility (2.85%) compared to MFLX (1.41%). In terms of maximum drawdown, MFLX dropped -26.76% vs FDL's -65.93%.

Which ETF is better, MFLX or FDL?

On 5-year performance, FDL leads with 12.51% vs -0.03% for MFLX. On fees, FDL is cheaper at 0.45% per year. On volatility, MFLX has been the lower-risk option at 1.41%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MFLX or FDL?

Over the 5-year period, FDL has performed better with a 12.51% return vs -0.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MFLX or FDL?

FDL is cheaper with a 0.45% expense ratio, compared with 0.88% for MFLX.

Which ETF pays a higher dividend yield, MFLX or FDL?

MFLX has the higher dividend yield at 4.08%, compared with 3.68% for FDL.

What is the main difference between MFLX and FDL?

MFLX is categorized as Municipal Bonds, while FDL is Large Cap Value Equities. Their fees differ too: 0.88% for MFLX and 0.45% for FDL.

Which has better risk-adjusted returns?

MFLX currently has the higher Sharpe Ratio (2.27 vs 2.11), 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.