SHLD vs. ALAI

Last updated Jun 13, 2026

SHLD (Global X Defense Tech ETF) and ALAI (Alger AI Enablers & Adopters ETF) are both exchange-traded funds - SHLD is a Aerospace & Defense fund tracking the Global X Defense Tech Index, while ALAI is a Technology Equities fund actively managed by Alger. SHLD is passively managed, while ALAI is actively managed. Over the past year, SHLD returned 8.26% vs 51.94% for ALAI. At a 0.38 correlation, their price movements are largely independent. SHLD charges 0.50%/yr vs 0.55%/yr for ALAI.

Performance

SHLD vs. ALAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Defense Tech ETF (SHLD) and Alger AI Enablers & Adopters ETF (ALAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHLD achieves a -1.50% return, which is significantly lower than ALAI's 20.13% return.

SHLD

• 1D: -2.04%
• 1M: -0.44%
• YTD: -1.50%
• 6M: -1.03%
• 1Y: 8.26%
• 3Y*: —
• 5Y*: —
• 10Y*: —

ALAI

• 1D: 0.81%
• 1M: -0.06%
• YTD: 20.13%
• 6M: 20.63%
• 1Y: 51.94%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SHLD vs. ALAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SHLD Global X Defense Tech ETF	-1.50%	74.16%	13.85%
ALAI Alger AI Enablers & Adopters ETF	20.13%	39.81%	32.38%

Correlation

The correlation between SHLD and ALAI is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.38
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	0.38

SHLD vs. ALAI - Sectors Allocation Comparison

Sectors	SHLD	ALAI
Industrials	88.2%	3.2%
Technology	11.8%	55.9%
Basic Materials	-	-
Communication Services	-	20.1%
Consumer Cyclical	-	13.7%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	2.3%
Healthcare	-	2.8%
Real Estate	-	-
Utilities	-	2.0%

Return for Risk

SHLD vs. ALAI — Risk / Return Rank

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

SHLD

SHLD Risk / Return Rank: 16
SHLD Sharpe Ratio Rank: 17
SHLD Sortino Ratio Rank: 17
SHLD Omega Ratio Rank: 16
SHLD Calmar Ratio Rank: 16
SHLD Martin Ratio Rank: 16

ALAI

ALAI Risk / Return Rank: 63
ALAI Sharpe Ratio Rank: 74
ALAI Sortino Ratio Rank: 65
ALAI Omega Ratio Rank: 64
ALAI Calmar Ratio Rank: 60
ALAI Martin Ratio Rank: 54

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.

SHLD vs. ALAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Defense Tech ETF (SHLD) and Alger AI Enablers & Adopters ETF (ALAI). 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.

	SHLD	ALAI	Difference
Sharpe ratio: Return per unit of total volatility	0.43	2.06	-1.64
Sortino ratio: Return per unit of downside risk	0.78	2.60	-1.83
Omega ratio: Gain probability vs. loss probability	1.09	1.34	-0.25
Calmar ratio: Return relative to maximum drawdown	0.52	2.64	-2.12
Martin ratio: Return relative to average drawdown	1.28	8.30	-7.02

SHLD vs. ALAI - Sharpe Ratio Comparison

The current SHLD Sharpe Ratio is 0.43, which is lower than the ALAI Sharpe Ratio of 2.06. The chart below compares the historical Sharpe Ratios of SHLD and ALAI, 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

SHLD vs. ALAI - Drawdown Comparison

The maximum SHLD drawdown since its inception was -20.10%, smaller than the maximum ALAI drawdown of -29.36%. Use the drawdown chart below to compare losses from any high point for SHLD and ALAI.

Drawdown Indicators

	SHLD	ALAI	Difference
Max Drawdown Largest peak-to-trough decline	-20.10%	-29.36%	+9.26%
Max Drawdown (1Y) Largest decline over 1 year	-20.10%	-19.48%	-0.62%
Current Drawdown Current decline from peak	-18.20%	-7.13%	-11.07%
Average Drawdown Average peak-to-trough decline	-3.34%	-5.15%	+1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.12%	6.18%	+1.94%

Volatility

SHLD vs. ALAI - Volatility Comparison

Global X Defense Tech ETF (SHLD) and Alger AI Enablers & Adopters ETF (ALAI) have volatilities of 9.05% and 9.13%, 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

	SHLD	ALAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.05%	9.13%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	19.94%	19.84%	+0.10%
Volatility (1Y) Calculated over the trailing 1-year period	24.55%	24.96%	-0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.29%	28.59%	-7.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.29%	28.59%	-7.30%

SHLD vs. ALAI - Expense Ratio Comparison

SHLD has a 0.50% expense ratio, which is lower than ALAI's 0.55% expense ratio.

Dividends

SHLD vs. ALAI - Dividend Comparison

SHLD's dividend yield for the trailing twelve months is around 0.56%, less than ALAI's 1.25% yield.

Position	TTM	2025	2024	2023
ALAI Alger AI Enablers & Adopters ETF	1.25%	1.50%	0.66%	0.00%
SHLD Global X Defense Tech ETF	0.56%	0.55%	0.53%	0.26%

Frequently Asked Questions

Can I hold both SHLD and ALAI in my portfolio?

SHLD and ALAI have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SHLD or ALAI?

ALAI has higher volatility (9.13%) compared to SHLD (9.05%). In terms of maximum drawdown, SHLD dropped -20.10% vs ALAI's -29.36%.

Which ETF is better, SHLD or ALAI?

On 1-year performance, ALAI leads with 51.94% vs 8.26% for SHLD. On fees, SHLD is cheaper at 0.50% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHLD or ALAI?

Over the 1-year period, ALAI has performed better with a 51.94% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHLD or ALAI?

SHLD is cheaper with a 0.50% expense ratio, compared with 0.55% for ALAI.

Which ETF pays a higher dividend yield, SHLD or ALAI?

ALAI has the higher dividend yield at 1.25%, compared with 0.56% for SHLD.

What is the main difference between SHLD and ALAI?

SHLD is categorized as Aerospace & Defense, while ALAI is Technology Equities. They also come from different issuers: Global X and Alger. Their fees differ too: 0.50% for SHLD and 0.55% for ALAI.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (2.06 vs 0.43), 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.