NXTG vs. TDIV

Last updated Jul 14, 2026

NXTG (First Trust IndXX NextG ETF) and TDIV (First Trust NASDAQ Technology Dividend Index Fund) are both Technology Equities funds from First Trust - NXTG tracks the Indxx 5G & NextG Thematic Index while TDIV tracks the NASDAQ Technology Dividend Index. Both are passively managed. Over the past 10 years, NXTG returned 16.35%/yr vs 17.48%/yr for TDIV. A 0.76 correlation means they provide meaningful diversification when combined. NXTG charges 0.70%/yr vs 0.50%/yr for TDIV.

Performance

NXTG vs. TDIV - 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 Technology Dividend Index Fund (TDIV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NXTG achieves a 39.14% return, which is significantly higher than TDIV's 17.47% return. Over the past 10 years, NXTG has underperformed TDIV with an annualized return of 16.35%, while TDIV has yielded a comparatively higher 17.48% annualized return.

NXTG

• 1D: -1.93%
• 1M: -3.97%
• 6M: 35.77%
• YTD: 39.14%
• 1Y: 56.52%
• 3Y*: 29.23%
• 5Y*: 16.53%
• 10Y*: 16.35%

TDIV

• 1D: -1.40%
• 1M: -3.05%
• 6M: 13.26%
• YTD: 17.47%
• 1Y: 25.18%
• 3Y*: 26.49%
• 5Y*: 16.46%
• 10Y*: 17.48%

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

NXTG vs. TDIV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NXTG First Trust IndXX NextG ETF	39.14%	28.46%	12.85%	28.74%	-24.70%	21.81%	27.58%	29.58%	-17.25%	28.02%
TDIV First Trust NASDAQ Technology Dividend Index Fund	17.47%	25.27%	24.43%	36.71%	-22.13%	29.49%	17.55%	33.27%	-3.18%	21.95%

Correlation

The correlation between NXTG and TDIV is 0.88, 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	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.88
Correlation (10Y) Calculated over the trailing 10-year period	0.83
Correlation (All Time) Calculated using the full available price history since Aug 14, 2012	0.76

The correlation between NXTG and TDIV shifts across timeframes, from 0.76 (all time) to 0.88 (1 year), reflecting how their relationship changes across market environments.

NXTG vs. TDIV - Sectors Allocation Comparison

Sectors	NXTG	TDIV
Technology	71.2%	87.1%
Communication Services	18.1%	11.6%
Real Estate	6.2%	-
Industrials	4.2%	1.3%
Consumer Cyclical	0.4%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

NXTG vs. TDIV — Risk / Return Rank

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

NXTG

NXTG Risk / Return Rank: 90
NXTG Sharpe Ratio Rank: 93
NXTG Sortino Ratio Rank: 89
NXTG Omega Ratio Rank: 90
NXTG Calmar Ratio Rank: 92
NXTG Martin Ratio Rank: 88

TDIV

TDIV Risk / Return Rank: 44
TDIV Sharpe Ratio Rank: 44
TDIV Sortino Ratio Rank: 42
TDIV Omega Ratio Rank: 42
TDIV Calmar Ratio Rank: 49
TDIV Martin Ratio Rank: 42

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. TDIV - 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 Technology Dividend Index Fund (TDIV). 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	TDIV	Difference
Sharpe ratio: Return per unit of total volatility	2.61	1.25	+1.36
Sortino ratio: Return per unit of downside risk	3.26	1.75	+1.51
Omega ratio: Gain probability vs. loss probability	1.46	1.22	+0.23
Calmar ratio: Return relative to maximum drawdown	4.77	1.94	+2.82
Martin ratio: Return relative to average drawdown	14.87	5.32	+9.55

NXTG vs. TDIV - Sharpe Ratio Comparison

The current NXTG Sharpe Ratio is 2.61, which is higher than the TDIV Sharpe Ratio of 1.25. The chart below compares the historical Sharpe Ratios of NXTG and TDIV, 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. TDIV - Drawdown Comparison

The maximum NXTG drawdown since its inception was -33.61%, which is greater than TDIV's maximum drawdown of -31.97%. Use the drawdown chart below to compare losses from any high point for NXTG and TDIV.

Drawdown Indicators

	NXTG	TDIV	Difference
Max Drawdown Largest peak-to-trough decline	-33.61%	-31.97%	-1.64%
Max Drawdown (1Y) Largest decline over 1 year	-11.91%	-13.01%	+1.10%
Max Drawdown (3Y) Largest decline over 3 years	-17.75%	-23.00%	+5.25%
Max Drawdown (5Y) Largest decline over 5 years	-33.61%	-31.97%	-1.64%
Max Drawdown (10Y) Largest decline over 10 years	-33.61%	-31.97%	-1.64%
Current Drawdown Current decline from peak	-10.70%	-11.65%	+0.95%
Average Drawdown Average peak-to-trough decline	-7.92%	-4.88%	-3.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.81%	4.75%	-0.94%

Volatility

NXTG vs. TDIV - Volatility Comparison

First Trust IndXX NextG ETF (NXTG) has a higher volatility of 9.13% compared to First Trust NASDAQ Technology Dividend Index Fund (TDIV) at 6.69%. This indicates that NXTG's price experiences larger fluctuations and is considered to be riskier than TDIV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NXTG	TDIV	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.13%	6.69%	+2.44%
Volatility (6M) Calculated over the trailing 6-month period	19.28%	16.05%	+3.23%
Volatility (1Y) Calculated over the trailing 1-year period	21.78%	20.26%	+1.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.67%	21.05%	-2.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.06%	20.95%	-1.89%

NXTG vs. TDIV - Expense Ratio Comparison

NXTG has a 0.70% expense ratio, which is higher than TDIV's 0.50% expense ratio.

Dividends

NXTG vs. TDIV - Dividend Comparison

NXTG's dividend yield for the trailing twelve months is around 1.24%, less than TDIV's 1.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NXTG First Trust IndXX NextG ETF	1.24%	1.56%	1.51%	2.15%	2.04%	1.97%	1.04%	0.77%	1.27%	1.65%	1.23%	1.11%
TDIV First Trust NASDAQ Technology Dividend Index Fund	1.34%	1.40%	1.59%	1.74%	2.51%	1.76%	2.07%	2.27%	2.97%	2.27%	2.45%	2.52%

Frequently Asked Questions

Can I hold both NXTG and TDIV in my portfolio?

NXTG and TDIV have a correlation of 0.88, 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 TDIV?

NXTG has higher volatility (9.13%) compared to TDIV (6.69%). In terms of maximum drawdown, NXTG dropped -33.61% vs TDIV's -31.97%.

Which ETF is better, NXTG or TDIV?

On 10-year performance, TDIV leads with 17.48% vs 16.35% for NXTG. On fees, TDIV is cheaper at 0.50% per year. On volatility, TDIV has been the lower-risk option at 6.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NXTG or TDIV?

Over the 10-year period, TDIV has performed better with a 17.48% return vs 16.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NXTG or TDIV?

TDIV is cheaper with a 0.50% expense ratio, compared with 0.70% for NXTG.

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

TDIV has the higher dividend yield at 1.34%, compared with 1.24% for NXTG.

What is the main difference between NXTG and TDIV?

NXTG tracks Indxx 5G & NextG Thematic Index, while TDIV tracks NASDAQ Technology Dividend Index. Their fees differ too: 0.70% for NXTG and 0.50% for TDIV.

Which has better risk-adjusted returns?

NXTG currently has the higher Sharpe Ratio (2.61 vs 1.25), 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.