MXI vs. FXZ

Last updated Jun 5, 2026

MXI (iShares Global Materials ETF) and FXZ (First Trust Materials AlphaDEX Fund) are both Materials funds - MXI tracks the S&P Global Materials Index while FXZ tracks the StrataQuant Materials Index. Both are passively managed. Over the past 10 years, MXI returned 11.36%/yr vs 11.59%/yr for FXZ. Their correlation of 0.83 suggests significant overlap in exposure. MXI charges 0.46%/yr vs 0.67%/yr for FXZ.

Performance

MXI vs. FXZ - Performance Comparison

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

Returns By Period

In the year-to-date period, MXI achieves a 16.99% return, which is significantly lower than FXZ's 29.58% return. Both investments have delivered pretty close results over the past 10 years, with MXI having a 11.36% annualized return and FXZ not far ahead at 11.59%.

MXI

• 1D: -0.06%
• 1M: 3.54%
• YTD: 16.99%
• 6M: 20.75%
• 1Y: 34.23%
• 3Y*: 15.19%
• 5Y*: 6.63%
• 10Y*: 11.36%

FXZ

• 1D: -0.04%
• 1M: 3.76%
• YTD: 29.58%
• 6M: 33.83%
• 1Y: 52.87%
• 3Y*: 13.19%
• 5Y*: 7.83%
• 10Y*: 11.59%

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

MXI vs. FXZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MXI iShares Global Materials ETF	16.99%	27.43%	-8.25%	14.37%	-9.09%	15.06%	22.31%	22.19%	-16.06%	30.33%
FXZ First Trust Materials AlphaDEX Fund	29.58%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%

Correlation

The correlation between MXI and FXZ is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.85
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.83

The correlation between MXI and FXZ has been stable across timeframes, ranging from 0.83 to 0.87 - a consistent structural relationship.

MXI vs. FXZ - Sectors Allocation Comparison

Sectors	MXI	FXZ
Basic Materials	95.2%	75.7%
Consumer Cyclical	4.4%	3.9%
Consumer Defensive	0.6%	-
Industrials	0.4%	20.4%
Communication Services	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

MXI vs. FXZ — Risk / Return Rank

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

MXI

MXI Risk / Return Rank: 49
MXI Sharpe Ratio Rank: 53
MXI Sortino Ratio Rank: 48
MXI Omega Ratio Rank: 50
MXI Calmar Ratio Rank: 44
MXI Martin Ratio Rank: 52

FXZ

FXZ Risk / Return Rank: 75
FXZ Sharpe Ratio Rank: 76
FXZ Sortino Ratio Rank: 72
FXZ Omega Ratio Rank: 68
FXZ Calmar Ratio Rank: 81
FXZ Martin Ratio Rank: 80

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.

MXI vs. FXZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Materials ETF (MXI) and First Trust Materials AlphaDEX Fund (FXZ). 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.

	MXI	FXZ	Difference
Sharpe ratio: Return per unit of total volatility	1.77	2.43	-0.66
Sortino ratio: Return per unit of downside risk	2.31	3.19	-0.88
Omega ratio: Gain probability vs. loss probability	1.31	1.40	-0.09
Calmar ratio: Return relative to maximum drawdown	2.13	4.17	-2.04
Martin ratio: Return relative to average drawdown	8.56	15.67	-7.10
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MXI vs. FXZ - Sharpe Ratio Comparison

The current MXI Sharpe Ratio is 1.77, which is comparable to the FXZ Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of MXI and FXZ, 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

	MXI	FXZ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.77	2.43	-0.66
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.34	0.33	+0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	0.47	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.35	-0.09

Drawdowns

MXI vs. FXZ - Drawdown Comparison

The maximum MXI drawdown since its inception was -68.44%, roughly equal to the maximum FXZ drawdown of -65.46%. Use the drawdown chart below to compare losses from any high point for MXI and FXZ.

Drawdown Indicators

	MXI	FXZ	Difference
Max Drawdown Largest peak-to-trough decline	-68.44%	-65.46%	-2.98%
Max Drawdown (1Y) Largest decline over 1 year	-16.18%	-12.75%	-3.43%
Max Drawdown (3Y) Largest decline over 3 years	-22.25%	-33.99%	+11.74%
Max Drawdown (5Y) Largest decline over 5 years	-28.76%	-33.99%	+5.23%
Max Drawdown (10Y) Largest decline over 10 years	-39.52%	-49.41%	+9.89%
Current Drawdown Current decline from peak	-2.98%	-0.44%	-2.54%
Average Drawdown Average peak-to-trough decline	-18.07%	-11.35%	-6.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	3.38%	+0.63%

Volatility

MXI vs. FXZ - Volatility Comparison

iShares Global Materials ETF (MXI) and First Trust Materials AlphaDEX Fund (FXZ) have volatilities of 7.15% and 6.85%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MXI	FXZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.15%	6.85%	+0.30%
Volatility (6M) Calculated over the trailing 6-month period	16.51%	16.38%	+0.13%
Volatility (1Y) Calculated over the trailing 1-year period	19.44%	21.84%	-2.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.66%	24.13%	-4.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.42%	24.87%	-4.45%

MXI vs. FXZ - Expense Ratio Comparison

MXI has a 0.46% expense ratio, which is lower than FXZ's 0.67% expense ratio.

Dividends

MXI vs. FXZ - Dividend Comparison

MXI's dividend yield for the trailing twelve months is around 1.90%, more than FXZ's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXZ First Trust Materials AlphaDEX Fund	1.38%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%
MXI iShares Global Materials ETF	1.90%	2.22%	3.24%	2.92%	4.84%	3.51%	1.21%	3.64%	2.77%	1.76%	1.31%	3.64%

Frequently Asked Questions

Can I hold both MXI and FXZ in my portfolio?

MXI and FXZ have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MXI or FXZ?

MXI has higher volatility (7.15%) compared to FXZ (6.85%). In terms of maximum drawdown, MXI dropped -68.44% vs FXZ's -65.46%.

Which ETF is better, MXI or FXZ?

On 10-year performance, FXZ leads with 11.59% vs 11.36% for MXI. On fees, MXI is cheaper at 0.46% per year. On volatility, FXZ has been the lower-risk option at 6.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MXI or FXZ?

Over the 10-year period, FXZ has performed better with a 11.59% return vs 11.36%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MXI or FXZ?

MXI is cheaper with a 0.46% expense ratio, compared with 0.67% for FXZ.

Which ETF pays a higher dividend yield, MXI or FXZ?

MXI has the higher dividend yield at 1.90%, compared with 1.38% for FXZ.

What is the main difference between MXI and FXZ?

MXI tracks S&P Global Materials Index, while FXZ tracks StrataQuant Materials Index. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.46% for MXI and 0.67% for FXZ.

Which has better risk-adjusted returns?

FXZ currently has the higher Sharpe Ratio (2.43 vs 1.77), 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.