NXTG vs. GRID

Last updated Jun 4, 2026

NXTG (First Trust IndXX NextG ETF) and GRID (First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index) are both exchange-traded funds - NXTG is a Technology Equities fund tracking the Indxx 5G & NextG Thematic Index, while GRID is a Alternative Energy Equities fund tracking the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. Both are passively managed. Over the past 10 years, NXTG returned 17.94%/yr vs 19.76%/yr for GRID. A 0.68 correlation means they provide meaningful diversification when combined. Both charge a 0.70% expense ratio.

Performance

NXTG vs. GRID - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust IndXX NextG ETF (NXTG) and First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NXTG achieves a 54.54% return, which is significantly higher than GRID's 28.91% return. Over the past 10 years, NXTG has underperformed GRID with an annualized return of 17.94%, while GRID has yielded a comparatively higher 19.76% annualized return.

NXTG

• 1D: -0.82%
• 1M: 22.84%
• YTD: 54.54%
• 6M: 55.39%
• 1Y: 82.82%
• 3Y*: 35.56%
• 5Y*: 19.17%
• 10Y*: 17.94%

GRID

• 1D: -0.17%
• 1M: 3.85%
• YTD: 28.91%
• 6M: 29.60%
• 1Y: 51.55%
• 3Y*: 26.27%
• 5Y*: 17.84%
• 10Y*: 19.76%

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

NXTG vs. GRID - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NXTG First Trust IndXX NextG ETF	54.54%	28.46%	12.85%	28.74%	-24.70%	21.81%	27.58%	29.58%	-17.25%	28.02%
GRID First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index	28.91%	29.65%	15.18%	21.57%	-13.89%	27.65%	48.84%	42.80%	-22.69%	27.44%

Correlation

The correlation between NXTG and GRID is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (10Y) Calculated over the trailing 10-year period	0.75
Correlation (All Time) Calculated using the full available price history since Feb 22, 2011	0.68

The correlation between NXTG and GRID shifts across timeframes, from 0.68 (all time) to 0.84 (5 years), reflecting how their relationship changes across market environments.

NXTG vs. GRID - Sectors Allocation Comparison

Sectors	NXTG	GRID
Technology	66.1%	11.0%
Communication Services	21.7%	-
Real Estate	7.5%	-
Industrials	4.3%	65.2%
Consumer Cyclical	0.4%	3.5%
Basic Materials	-	0.0%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Utilities	-	20.4%

Return for Risk

NXTG vs. GRID — Risk / Return Rank

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

NXTG

NXTG Risk / Return Rank: 96
NXTG Sharpe Ratio Rank: 97
NXTG Sortino Ratio Rank: 96
NXTG Omega Ratio Rank: 96
NXTG Calmar Ratio Rank: 95
NXTG Martin Ratio Rank: 95

GRID

GRID Risk / Return Rank: 79
GRID Sharpe Ratio Rank: 81
GRID Sortino Ratio Rank: 76
GRID Omega Ratio Rank: 74
GRID Calmar Ratio Rank: 82
GRID Martin Ratio Rank: 82

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. GRID - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust IndXX NextG ETF (NXTG) and First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID). 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.

	NXTG	GRID	Difference
Sharpe ratio Return per unit of total volatility	4.52	2.67	+1.84
Sortino ratio Return per unit of downside risk	5.69	3.50	+2.19
Omega ratio Gain probability vs. loss probability	1.77	1.45	+0.32
Calmar ratio Return relative to maximum drawdown	8.10	4.42	+3.69
Martin ratio Return relative to average drawdown	31.73	16.72	+15.02
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NXTG vs. GRID - Sharpe Ratio Comparison

The current NXTG Sharpe Ratio is 4.52, which is higher than the GRID Sharpe Ratio of 2.67. The chart below compares the historical Sharpe Ratios of NXTG and GRID, 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

	NXTG	GRID	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.52	2.67	+1.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.08	0.85	+0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.95	0.87	+0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.57	+0.12

Drawdowns

NXTG vs. GRID - Drawdown Comparison

The maximum NXTG drawdown since its inception was -33.61%, smaller than the maximum GRID drawdown of -40.56%. Use the drawdown chart below to compare losses from any high point for NXTG and GRID.

Drawdown Indicators

	NXTG	GRID	Difference
Max Drawdown Largest peak-to-trough decline	-33.61%	-40.56%	+6.95%
Max Drawdown (1Y) Largest decline over 1 year	-10.28%	-11.73%	+1.45%
Max Drawdown (3Y) Largest decline over 3 years	-17.75%	-20.77%	+3.02%
Max Drawdown (5Y) Largest decline over 5 years	-33.61%	-29.64%	-3.97%
Max Drawdown (10Y) Largest decline over 10 years	-33.61%	-40.56%	+6.95%
Current Drawdown Current decline from peak	-0.82%	-1.33%	+0.51%
Average Drawdown Average peak-to-trough decline	-7.87%	-8.43%	+0.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.62%	3.09%	-0.47%

Volatility

NXTG vs. GRID - Volatility Comparison

First Trust IndXX NextG ETF (NXTG) and First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index (GRID) have volatilities of 8.27% and 7.95%, 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

	NXTG	GRID	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.27%	7.95%	+0.32%
Volatility (6M) Calculated over the trailing 6-month period	15.26%	16.08%	-0.82%
Volatility (1Y) Calculated over the trailing 1-year period	18.44%	19.39%	-0.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.93%	21.00%	-3.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.88%	22.81%	-3.93%

NXTG vs. GRID - Expense Ratio Comparison

Both NXTG and GRID have an expense ratio of 0.70%.

Dividends

NXTG vs. GRID - Dividend Comparison

NXTG's dividend yield for the trailing twelve months is around 1.11%, more than GRID's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GRID First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index	0.77%	1.01%	1.06%	1.23%	1.26%	0.63%	0.68%	1.26%	1.28%	1.07%	1.07%	1.23%
NXTG First Trust IndXX NextG ETF	1.11%	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 GRID in my portfolio?

NXTG and GRID have a correlation of 0.83, 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 GRID?

NXTG has higher volatility (8.27%) compared to GRID (7.95%). In terms of maximum drawdown, NXTG dropped -33.61% vs GRID's -40.56%.

Which ETF is better, NXTG or GRID?

On 10-year performance, GRID leads with 19.76% vs 17.94% for NXTG. Both ETFs have the same 0.70% expense ratio. On volatility, GRID has been the lower-risk option at 7.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NXTG or GRID?

Over the 10-year period, GRID has performed better with a 19.76% return vs 17.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NXTG or GRID?

NXTG and GRID have the same expense ratio: 0.70% per year.

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

NXTG has the higher dividend yield at 1.11%, compared with 0.77% for GRID.

What is the main difference between NXTG and GRID?

NXTG is categorized as Technology Equities, while GRID is Alternative Energy Equities. NXTG tracks Indxx 5G & NextG Thematic Index, while GRID tracks NASDAQ OMX Clean Edge Smart Grid Infrastructure Index.

Which has better risk-adjusted returns?

NXTG currently has the higher Sharpe Ratio (4.52 vs 2.67), 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.