NXTG vs. FDL

Last updated Jun 24, 2026

NXTG (First Trust IndXX NextG ETF) and FDL (First Trust Morningstar Dividend Leaders Index Fund) are both exchange-traded funds - NXTG is a Technology Equities fund tracking the Indxx 5G & NextG Thematic Index, while FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index. Both are passively managed. Over the past 10 years, NXTG returned 17.41%/yr vs 11.12%/yr for FDL. At a 0.49 correlation, their price movements are largely independent. NXTG charges 0.70%/yr vs 0.43%/yr for FDL.

Performance

NXTG vs. FDL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust IndXX NextG ETF (NXTG) 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, NXTG achieves a 43.67% return, which is significantly higher than FDL's 12.67% return. Over the past 10 years, NXTG has outperformed FDL with an annualized return of 17.41%, while FDL has yielded a comparatively lower 11.12% annualized return.

NXTG

• 1D: -3.56%
• 1M: 3.06%
• YTD: 43.67%
• 6M: 43.68%
• 1Y: 65.86%
• 3Y*: 32.64%
• 5Y*: 17.55%
• 10Y*: 17.41%

FDL

• 1D: 1.20%
• 1M: -2.75%
• YTD: 12.67%
• 6M: 13.02%
• 1Y: 22.39%
• 3Y*: 19.10%
• 5Y*: 13.08%
• 10Y*: 11.12%

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

NXTG vs. FDL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NXTG First Trust IndXX NextG ETF	43.67%	28.46%	12.85%	28.74%	-24.70%	21.81%	27.58%	29.58%	-17.25%	28.02%
FDL First Trust Morningstar Dividend Leaders Index Fund	12.67%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%

Correlation

The correlation between NXTG and FDL is 0.13, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Feb 18, 2011	0.49

Over the past year, the correlation between NXTG and FDL has dropped to 0.13 - well below their long-term average of 0.49, suggesting their price drivers have been diverging.

NXTG vs. FDL - Sectors Allocation Comparison

Sectors	NXTG	FDL
Technology	71.2%	1.4%
Communication Services	18.1%	10.6%
Real Estate	6.2%	-
Industrials	4.2%	3.9%
Consumer Cyclical	0.4%	4.7%
Basic Materials	-	0.3%
Consumer Defensive	-	14.4%
Energy	-	25.7%
Financial Services	-	15.2%
Healthcare	-	17.6%
Utilities	-	6.5%

Return for Risk

NXTG vs. FDL — Risk / Return Rank

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

NXTG

NXTG Risk / Return Rank: 91
NXTG Sharpe Ratio Rank: 93
NXTG Sortino Ratio Rank: 88
NXTG Omega Ratio Rank: 90
NXTG Calmar Ratio Rank: 92
NXTG Martin Ratio Rank: 92

FDL

FDL Risk / Return Rank: 69
FDL Sharpe Ratio Rank: 61
FDL Sortino Ratio Rank: 68
FDL Omega Ratio Rank: 57
FDL Calmar Ratio Rank: 90
FDL Martin Ratio Rank: 69

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.

NXTG vs. FDL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust IndXX NextG ETF (NXTG) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	NXTG	FDL	Difference
Sharpe ratio: Return per unit of total volatility	3.10	1.95	+1.15
Sortino ratio: Return per unit of downside risk	3.78	2.96	+0.82
Omega ratio: Gain probability vs. loss probability	1.54	1.34	+0.20
Calmar ratio: Return relative to maximum drawdown	5.78	5.26	+0.52
Martin ratio: Return relative to average drawdown	21.26	12.40	+8.86

NXTG vs. FDL - Sharpe Ratio Comparison

The current NXTG Sharpe Ratio is 3.10, which is higher than the FDL Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of NXTG 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.

Drawdowns

NXTG vs. FDL - Drawdown Comparison

The maximum NXTG drawdown since its inception was -33.61%, smaller than the maximum FDL drawdown of -65.93%. Use the drawdown chart below to compare losses from any high point for NXTG and FDL.

Drawdown Indicators

	NXTG	FDL	Difference
Max Drawdown Largest peak-to-trough decline	-33.61%	-65.93%	+32.32%
Max Drawdown (1Y) Largest decline over 1 year	-11.45%	-4.27%	-7.18%
Max Drawdown (3Y) Largest decline over 3 years	-17.75%	-12.24%	-5.51%
Max Drawdown (5Y) Largest decline over 5 years	-33.61%	-16.46%	-17.15%
Max Drawdown (10Y) Largest decline over 10 years	-33.61%	-41.40%	+7.79%
Current Drawdown Current decline from peak	-7.80%	-3.09%	-4.71%
Average Drawdown Average peak-to-trough decline	-7.91%	-9.64%	+1.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.11%	1.81%	+1.30%

Volatility

NXTG vs. FDL - Volatility Comparison

First Trust IndXX NextG ETF (NXTG) has a higher volatility of 12.89% compared to First Trust Morningstar Dividend Leaders Index Fund (FDL) at 3.72%. This indicates that NXTG's price experiences larger fluctuations and is considered to be riskier than FDL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NXTG	FDL	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.89%	3.72%	+9.17%
Volatility (6M) Calculated over the trailing 6-month period	18.74%	8.09%	+10.65%
Volatility (1Y) Calculated over the trailing 1-year period	21.37%	11.54%	+9.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.57%	14.31%	+4.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.11%	17.11%	+2.00%

NXTG vs. FDL - Expense Ratio Comparison

NXTG has a 0.70% expense ratio, which is higher than FDL's 0.43% expense ratio.

Dividends

NXTG vs. FDL - Dividend Comparison

NXTG's dividend yield for the trailing twelve months is around 1.19%, less than FDL's 3.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.70%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
NXTG First Trust IndXX NextG ETF	1.19%	1.56%	1.51%	2.15%	2.04%	1.97%	1.04%	0.77%	1.27%	1.65%	1.23%	1.11%

Frequently Asked Questions

Can I hold both NXTG and FDL in my portfolio?

NXTG and FDL have a correlation of 0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NXTG or FDL?

NXTG has higher volatility (12.89%) compared to FDL (3.72%). In terms of maximum drawdown, NXTG dropped -33.61% vs FDL's -65.93%.

Which ETF is better, NXTG or FDL?

On 10-year performance, NXTG leads with 17.41% vs 11.12% for FDL. On fees, FDL is cheaper at 0.43% per year. On volatility, FDL has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NXTG or FDL?

Over the 10-year period, NXTG has performed better with a 17.41% return vs 11.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NXTG or FDL?

FDL is cheaper with a 0.43% expense ratio, compared with 0.70% for NXTG.

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

FDL has the higher dividend yield at 3.70%, compared with 1.19% for NXTG.

What is the main difference between NXTG and FDL?

NXTG is categorized as Technology Equities, while FDL is Large Cap Value Equities. NXTG tracks Indxx 5G & NextG Thematic Index, while FDL tracks Morningstar Dividend Leaders Index. Their fees differ too: 0.70% for NXTG and 0.43% for FDL.

Which has better risk-adjusted returns?

NXTG currently has the higher Sharpe Ratio (3.10 vs 1.95), 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.