PDN vs. FDTS

Last updated Jun 24, 2026

PDN (Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF) and FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) are both Foreign Small & Mid Cap Equities funds - PDN tracks the FTSE RAFI Developed x US Mid/Small while FDTS tracks the NASDAQ AlphaDEX DM Ex-US Small Cap Index. Both are passively managed. Over the past 10 years, PDN returned 8.78%/yr vs 10.51%/yr for FDTS. A 0.58 correlation means they provide meaningful diversification when combined. PDN charges 0.49%/yr vs 0.80%/yr for FDTS.

Performance

PDN vs. FDTS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) and First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PDN achieves a 7.41% return, which is significantly lower than FDTS's 12.44% return. Over the past 10 years, PDN has underperformed FDTS with an annualized return of 8.78%, while FDTS has yielded a comparatively higher 10.51% annualized return.

PDN

• 1D: -2.19%
• 1M: -3.17%
• YTD: 7.41%
• 6M: 7.22%
• 1Y: 22.25%
• 3Y*: 17.73%
• 5Y*: 6.30%
• 10Y*: 8.78%

FDTS

• 1D: -3.77%
• 1M: -6.39%
• YTD: 12.44%
• 6M: 12.40%
• 1Y: 36.22%
• 3Y*: 23.84%
• 5Y*: 9.93%
• 10Y*: 10.51%

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

PDN vs. FDTS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PDN Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF	7.41%	38.34%	0.57%	13.35%	-17.35%	9.03%	10.65%	19.17%	-18.38%	30.74%
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	12.44%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	18.71%	-23.71%	36.01%

Correlation

The correlation between PDN and FDTS is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Feb 16, 2012	0.58

Over the past year, PDN and FDTS have become more correlated (0.92) than their long-term average of 0.58, meaning their price movements have been converging.

PDN vs. FDTS - Sectors Allocation Comparison

Sectors	PDN	FDTS
Industrials	23.2%	22.2%
Financial Services	12.7%	11.9%
Consumer Cyclical	11.7%	18.9%
Basic Materials	10.5%	11.3%
Technology	10.1%	14.1%
Real Estate	8.7%	4.3%
Healthcare	5.7%	2.8%
Consumer Defensive	5.3%	4.7%
Energy	4.8%	4.0%
Communication Services	4.5%	3.2%
Utilities	2.7%	2.7%

Return for Risk

PDN vs. FDTS — Risk / Return Rank

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

PDN

PDN Risk / Return Rank: 44
PDN Sharpe Ratio Rank: 44
PDN Sortino Ratio Rank: 44
PDN Omega Ratio Rank: 44
PDN Calmar Ratio Rank: 42
PDN Martin Ratio Rank: 47

FDTS

FDTS Risk / Return Rank: 60
FDTS Sharpe Ratio Rank: 63
FDTS Sortino Ratio Rank: 59
FDTS Omega Ratio Rank: 62
FDTS Calmar Ratio Rank: 62
FDTS Martin Ratio Rank: 57

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.

PDN vs. FDTS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) and First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS). 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.

	PDN	FDTS	Difference
Sharpe ratio: Return per unit of total volatility	1.46	1.95	-0.50
Sortino ratio: Return per unit of downside risk	2.08	2.62	-0.54
Omega ratio: Gain probability vs. loss probability	1.27	1.35	-0.08
Calmar ratio: Return relative to maximum drawdown	1.99	2.89	-0.90
Martin ratio: Return relative to average drawdown	7.45	9.60	-2.15

PDN vs. FDTS - Sharpe Ratio Comparison

The current PDN Sharpe Ratio is 1.46, which is comparable to the FDTS Sharpe Ratio of 1.95. The chart below compares the historical Sharpe Ratios of PDN and FDTS, 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

PDN vs. FDTS - Drawdown Comparison

The maximum PDN drawdown since its inception was -59.32%, which is greater than FDTS's maximum drawdown of -51.26%. Use the drawdown chart below to compare losses from any high point for PDN and FDTS.

Drawdown Indicators

	PDN	FDTS	Difference
Max Drawdown Largest peak-to-trough decline	-59.32%	-51.26%	-8.06%
Max Drawdown (1Y) Largest decline over 1 year	-11.26%	-12.61%	+1.35%
Max Drawdown (3Y) Largest decline over 3 years	-13.25%	-13.19%	-0.06%
Max Drawdown (5Y) Largest decline over 5 years	-33.68%	-33.11%	-0.57%
Max Drawdown (10Y) Largest decline over 10 years	-41.94%	-51.26%	+9.32%
Current Drawdown Current decline from peak	-5.11%	-9.86%	+4.75%
Average Drawdown Average peak-to-trough decline	-11.57%	-10.64%	-0.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	3.78%	-0.79%

Volatility

PDN vs. FDTS - Volatility Comparison

The current volatility for Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) is 5.67%, while First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) has a volatility of 9.16%. This indicates that PDN experiences smaller price fluctuations and is considered to be less risky than FDTS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PDN	FDTS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.67%	9.16%	-3.49%
Volatility (6M) Calculated over the trailing 6-month period	13.10%	16.13%	-3.03%
Volatility (1Y) Calculated over the trailing 1-year period	15.37%	18.63%	-3.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.47%	29.47%	-13.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.96%	24.85%	-7.89%

PDN vs. FDTS - Expense Ratio Comparison

PDN has a 0.49% expense ratio, which is lower than FDTS's 0.80% expense ratio.

Dividends

PDN vs. FDTS - Dividend Comparison

PDN's dividend yield for the trailing twelve months is around 3.32%, more than FDTS's 2.67% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	2.67%	2.94%	3.94%	2.90%	3.71%	3.01%	2.02%	2.30%	1.96%	2.08%	1.78%	1.73%
PDN Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF	3.32%	3.36%	3.36%	3.16%	2.68%	2.42%	1.79%	2.60%	2.21%	2.42%	2.16%	2.06%

Frequently Asked Questions

Can I hold both PDN and FDTS in my portfolio?

With a correlation of 0.92, PDN and FDTS move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PDN or FDTS?

FDTS has higher volatility (9.16%) compared to PDN (5.67%). In terms of maximum drawdown, PDN dropped -59.32% vs FDTS's -51.26%.

Which ETF is better, PDN or FDTS?

On 10-year performance, FDTS leads with 10.51% vs 8.78% for PDN. On fees, PDN is cheaper at 0.49% per year. On volatility, PDN has been the lower-risk option at 5.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PDN or FDTS?

Over the 10-year period, FDTS has performed better with a 10.51% return vs 8.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PDN or FDTS?

PDN is cheaper with a 0.49% expense ratio, compared with 0.80% for FDTS.

Which ETF pays a higher dividend yield, PDN or FDTS?

PDN has the higher dividend yield at 3.32%, compared with 2.67% for FDTS.

What is the main difference between PDN and FDTS?

PDN tracks FTSE RAFI Developed x US Mid/Small, while FDTS tracks NASDAQ AlphaDEX DM Ex-US Small Cap Index. They also come from different issuers: Invesco and First Trust. Their fees differ too: 0.49% for PDN and 0.80% for FDTS.

Which has better risk-adjusted returns?

FDTS currently has the higher Sharpe Ratio (1.95 vs 1.46), 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.