NXTG vs. XLC
Compare and contrast key facts about First Trust Indxx NextG ETF (NXTG) and Communication Services Select Sector SPDR Fund (XLC).
NXTG and XLC are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. NXTG is a passively managed fund by First Trust that tracks the performance of the Indxx 5G & NextG Thematic Index. It was launched on Feb 17, 2011. XLC is a passively managed fund by State Street that tracks the performance of the S&P Communication Services Select Sector Index. It was launched on Jun 18, 2018. Both NXTG and XLC are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NXTG or XLC.
Key characteristics
| NXTG | XLC | |
|---|---|---|
| YTD Return | 13.64% | 33.48% |
| 1Y Return | 28.22% | 44.25% |
| 3Y Return (Ann) | 4.47% | 6.89% |
| 5Y Return (Ann) | 12.03% | 14.35% |
| Sharpe Ratio | 1.99 | 2.95 |
| Sortino Ratio | 2.70 | 3.90 |
| Omega Ratio | 1.34 | 1.53 |
| Calmar Ratio | 1.92 | 2.20 |
| Martin Ratio | 9.81 | 24.17 |
| Ulcer Index | 2.87% | 1.83% |
| Daily Std Dev | 14.13% | 15.00% |
| Max Drawdown | -33.61% | -46.66% |
| Current Drawdown | -2.67% | -0.49% |
Correlation
The correlation between NXTG and XLC is 0.70, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
NXTG vs. XLC - Performance Comparison
In the year-to-date period, NXTG achieves a 13.64% return, which is significantly lower than XLC's 33.48% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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NXTG vs. XLC - Expense Ratio Comparison
NXTG has a 0.70% expense ratio, which is higher than XLC's 0.13% expense ratio.
Risk-Adjusted Performance
NXTG vs. XLC - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Indxx NextG ETF (NXTG) and Communication Services Select Sector SPDR Fund (XLC). 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.
Dividends
NXTG vs. XLC - Dividend Comparison
NXTG's dividend yield for the trailing twelve months is around 1.86%, more than XLC's 0.92% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NXTG First Trust Indxx NextG ETF | 1.86% | 2.15% | 2.04% | 1.66% | 1.04% | 0.77% | 1.27% | 1.65% | 1.23% | 1.11% | 1.07% | 0.86% |
XLC Communication Services Select Sector SPDR Fund | 0.92% | 0.82% | 1.11% | 0.74% | 0.68% | 0.81% | 0.64% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
NXTG vs. XLC - Drawdown Comparison
The maximum NXTG drawdown since its inception was -33.61%, smaller than the maximum XLC drawdown of -46.66%. Use the drawdown chart below to compare losses from any high point for NXTG and XLC. For additional features, visit the drawdowns tool.
Volatility
NXTG vs. XLC - Volatility Comparison
The current volatility for First Trust Indxx NextG ETF (NXTG) is 3.17%, while Communication Services Select Sector SPDR Fund (XLC) has a volatility of 3.54%. This indicates that NXTG experiences smaller price fluctuations and is considered to be less risky than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.