MISL vs. FXR

Last updated Jun 4, 2026

MISL (First Trust Indxx Aerospace & Defense ETF) and FXR (First Trust Industrials/Producer Durables AlphaDEX Fund) are both Industrials Equities funds from First Trust - MISL tracks the Indxx US Aerospace & Defense Index - Benchmark TR Gross while FXR tracks the StrataQuant Industrials Index. Both are passively managed. Over the past 3 years, MISL returned 28.35%/yr vs 16.51%/yr for FXR. A 0.69 correlation means they provide meaningful diversification when combined. MISL charges 0.60%/yr vs 0.64%/yr for FXR.

Performance

MISL vs. FXR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Indxx Aerospace & Defense ETF (MISL) and First Trust Industrials/Producer Durables AlphaDEX Fund (FXR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MISL achieves a 7.59% return, which is significantly lower than FXR's 8.45% return.

MISL

• 1D: -2.71%
• 1M: 5.48%
• YTD: 7.59%
• 6M: 13.84%
• 1Y: 32.38%
• 3Y*: 28.35%
• 5Y*: —
• 10Y*: —

FXR

• 1D: -0.51%
• 1M: 1.16%
• YTD: 8.45%
• 6M: 10.07%
• 1Y: 20.53%
• 3Y*: 16.51%
• 5Y*: 8.41%
• 10Y*: 12.70%

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

MISL vs. FXR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MISL First Trust Indxx Aerospace & Defense ETF	7.59%	41.24%	20.48%	14.78%	8.22%
FXR First Trust Industrials/Producer Durables AlphaDEX Fund	8.45%	7.56%	16.19%	26.98%	3.63%

Correlation

The correlation between MISL and FXR is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (All Time) Calculated using the full available price history since Oct 27, 2022	0.69

The correlation between MISL and FXR has been stable across timeframes, ranging from 0.61 to 0.69 - a consistent structural relationship.

MISL vs. FXR - Sectors Allocation Comparison

Sectors	MISL	FXR
Industrials	83.0%	70.5%
Technology	17.0%	10.3%
Basic Materials	-	6.2%
Communication Services	-	-
Consumer Cyclical	-	7.5%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	3.4%
Healthcare	-	0.7%
Real Estate	-	-
Utilities	-	0.7%

Return for Risk

MISL vs. FXR — Risk / Return Rank

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

MISL

MISL Risk / Return Rank: 39
MISL Sharpe Ratio Rank: 40
MISL Sortino Ratio Rank: 41
MISL Omega Ratio Rank: 35
MISL Calmar Ratio Rank: 42
MISL Martin Ratio Rank: 35

FXR

FXR Risk / Return Rank: 31
FXR Sharpe Ratio Rank: 30
FXR Sortino Ratio Rank: 32
FXR Omega Ratio Rank: 28
FXR Calmar Ratio Rank: 31
FXR Martin Ratio Rank: 32

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.

MISL vs. FXR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx Aerospace & Defense ETF (MISL) and First Trust Industrials/Producer Durables AlphaDEX Fund (FXR). 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.

	MISL	FXR	Difference
Sharpe ratio: Return per unit of total volatility	1.44	1.09	+0.35
Sortino ratio: Return per unit of downside risk	2.10	1.71	+0.40
Omega ratio: Gain probability vs. loss probability	1.24	1.19	+0.04
Calmar ratio: Return relative to maximum drawdown	2.07	1.51	+0.56
Martin ratio: Return relative to average drawdown	5.49	4.82	+0.67
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MISL vs. FXR - Sharpe Ratio Comparison

The current MISL Sharpe Ratio is 1.44, which is higher than the FXR Sharpe Ratio of 1.09. The chart below compares the historical Sharpe Ratios of MISL and FXR, 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

	MISL	FXR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.44	1.09	+0.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.41	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.35	0.37	+0.98

Drawdowns

MISL vs. FXR - Drawdown Comparison

The maximum MISL drawdown since its inception was -17.91%, smaller than the maximum FXR drawdown of -63.81%. Use the drawdown chart below to compare losses from any high point for MISL and FXR.

Drawdown Indicators

	MISL	FXR	Difference
Max Drawdown Largest peak-to-trough decline	-17.91%	-63.81%	+45.90%
Max Drawdown (1Y) Largest decline over 1 year	-15.69%	-13.66%	-2.03%
Max Drawdown (3Y) Largest decline over 3 years	-17.91%	-26.65%	+8.74%
Max Drawdown (5Y) Largest decline over 5 years	—	-26.85%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-44.71%	—
Current Drawdown Current decline from peak	-9.75%	-5.35%	-4.40%
Average Drawdown Average peak-to-trough decline	-3.50%	-10.35%	+6.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	4.27%	+1.64%

Volatility

MISL vs. FXR - Volatility Comparison

First Trust Indxx Aerospace & Defense ETF (MISL) has a higher volatility of 8.50% compared to First Trust Industrials/Producer Durables AlphaDEX Fund (FXR) at 5.52%. This indicates that MISL's price experiences larger fluctuations and is considered to be riskier than FXR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MISL	FXR	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.50%	5.52%	+2.98%
Volatility (6M) Calculated over the trailing 6-month period	19.14%	14.61%	+4.53%
Volatility (1Y) Calculated over the trailing 1-year period	22.60%	18.98%	+3.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.14%	20.57%	-1.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.14%	21.92%	-2.78%

MISL vs. FXR - Expense Ratio Comparison

MISL has a 0.60% expense ratio, which is lower than FXR's 0.64% expense ratio.

Dividends

MISL vs. FXR - Dividend Comparison

MISL's dividend yield for the trailing twelve months is around 0.36%, less than FXR's 0.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXR First Trust Industrials/Producer Durables AlphaDEX Fund	0.63%	0.71%	0.72%	0.77%	0.92%	0.52%	1.06%	0.74%	1.18%	0.55%	0.52%	0.62%
MISL First Trust Indxx Aerospace & Defense ETF	0.36%	0.40%	0.74%	0.63%	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MISL and FXR in my portfolio?

MISL and FXR have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MISL or FXR?

MISL has higher volatility (8.50%) compared to FXR (5.52%). In terms of maximum drawdown, MISL dropped -17.91% vs FXR's -63.81%.

Which ETF is better, MISL or FXR?

On 3-year performance, MISL leads with 28.35% vs 16.51% for FXR. On fees, MISL is cheaper at 0.60% per year. On volatility, FXR has been the lower-risk option at 5.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MISL or FXR?

Over the 3-year period, MISL has performed better with a 28.35% return vs 16.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MISL or FXR?

MISL is cheaper with a 0.60% expense ratio, compared with 0.64% for FXR.

Which ETF pays a higher dividend yield, MISL or FXR?

FXR has the higher dividend yield at 0.63%, compared with 0.36% for MISL.

What is the main difference between MISL and FXR?

MISL tracks Indxx US Aerospace & Defense Index - Benchmark TR Gross, while FXR tracks StrataQuant Industrials Index. Their fees differ too: 0.60% for MISL and 0.64% for FXR.

Which has better risk-adjusted returns?

MISL currently has the higher Sharpe Ratio (1.44 vs 1.09), 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.