SLX vs. FXZ

Last updated Aug 2, 2026

SLX (VanEck Vectors Steel ETF) and FXZ (First Trust Materials AlphaDEX Fund) are both Materials funds - SLX tracks the NYSE Arca Steel Index while FXZ tracks the StrataQuant Materials Index. Both are passively managed. Over the past 10 years, SLX returned 17.02%/yr vs 10.25%/yr for FXZ. Their correlation of 0.82 means they have usually moved in the same direction. SLX charges 0.56%/yr vs 0.67%/yr for FXZ.

Performance

SLX vs. FXZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck Vectors Steel ETF (SLX) and First Trust Materials AlphaDEX Fund (FXZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SLX achieves a 24.30% return, which is significantly higher than FXZ's 18.92% return. Over the past 10 years, SLX has outperformed FXZ with an annualized return of 17.02%, while FXZ has yielded a comparatively lower 10.25% annualized return.

SLX

• 1D: -0.89%
• 1M: 7.42%
• 6M: 12.20%
• YTD: 24.30%
• 1Y: 59.99%
• 3Y*: 17.85%
• 5Y*: 14.69%
• 10Y*: 17.02%
• ALL TIME*: 7.95%

FXZ

• 1D: -1.69%
• 1M: -2.68%
• 6M: 7.26%
• YTD: 18.92%
• 1Y: 38.67%
• 3Y*: 5.94%
• 5Y*: 7.59%
• 10Y*: 10.25%
• ALL TIME*: 8.86%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FXZ First Trust Materials AlphaDEX Fund	$3.44M	$3.68M	$4.56M
SLX VanEck Vectors Steel ETF	$3.18M	$2.86M	$6.08M

SLX vs. FXZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SLX VanEck Vectors Steel ETF	24.30%	47.45%	-17.94%	31.25%	14.28%	27.69%	20.57%	12.01%	-19.27%	24.59%
FXZ First Trust Materials AlphaDEX Fund	18.92%	16.25%	-16.31%	16.27%	-0.92%	30.84%	22.52%	21.52%	-22.62%	23.72%

Correlation

The correlation between SLX and FXZ is 0.79, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.79
Correlation (3Y) Balances recent behavior with more history.	0.82
Correlation (5Y) Shows whether the relationship held over a longer period.	0.85
Correlation (10Y) Provides a long-term view across more market conditions.	0.83
Correlation (All Time) Calculated using the full available price history since May 10, 2007	0.82

The correlation between SLX and FXZ has been stable across timeframes, ranging from 0.79 to 0.85 - a consistent structural relationship.

SLX vs. FXZ - Sectors Allocation Comparison

Sectors	SLX	FXZ
Basic Materials	94.1%	72.3%
Energy	3.9%	-
Industrials	2.0%	23.4%
Communication Services	-	-
Consumer Cyclical	-	4.3%
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

SLX vs. FXZ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

SLX

SLX Risk / Return Rank: 87
SLX Sharpe Ratio Rank: 91
SLX Sortino Ratio Rank: 89
SLX Omega Ratio Rank: 87
SLX Calmar Ratio Rank: 88
SLX Martin Ratio Rank: 79

FXZ

FXZ Risk / Return Rank: 70
FXZ Sharpe Ratio Rank: 69
FXZ Sortino Ratio Rank: 68
FXZ Omega Ratio Rank: 62
FXZ Calmar Ratio Rank: 79
FXZ Martin Ratio Rank: 71

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

SLX vs. FXZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck Vectors Steel ETF (SLX) and First Trust Materials AlphaDEX Fund (FXZ). 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.

	SLX	FXZ	Difference
Sharpe ratio: Return per unit of total volatility	2.34	1.57	+0.77
Sortino ratio: Return per unit of downside risk	3.06	2.23	+0.83
Omega ratio: Gain probability vs. loss probability	1.39	1.27	+0.12
Calmar ratio: Return relative to maximum drawdown	3.53	2.81	+0.73
Martin ratio: Return relative to average drawdown	10.12	8.65	+1.47

SLX vs. FXZ - Sharpe Ratio Comparison

The current SLX Sharpe Ratio is 2.34, which is higher than the FXZ Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of SLX and FXZ, 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

SLX vs. FXZ - Drawdown Comparison

The maximum SLX drawdown since its inception was -82.14%, which is greater than FXZ's maximum drawdown of -65.46%. Use the drawdown chart below to compare losses from any high point for SLX and FXZ.

Drawdown Indicators

	SLX	FXZ	Difference
Max Drawdown Largest peak-to-trough decline	-82.14%	-65.46%	-16.68%
Max Drawdown (1Y) Largest decline over 1 year	-16.35%	-12.75%	-3.60%
Max Drawdown (3Y) Largest decline over 3 years	-27.39%	-33.99%	+6.60%
Max Drawdown (5Y) Largest decline over 5 years	-33.62%	-33.99%	+0.37%
Max Drawdown (10Y) Largest decline over 10 years	-61.64%	-49.41%	-12.23%
Current Drawdown Current decline from peak	-7.12%	-9.42%	+2.30%
Average Drawdown Average peak-to-trough decline	-38.48%	-11.31%	-27.17%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.69%	4.13%	+1.56%

Volatility

SLX vs. FXZ - Volatility Comparison

VanEck Vectors Steel ETF (SLX) and First Trust Materials AlphaDEX Fund (FXZ) have volatilities of 5.97% and 6.20%, 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

	SLX	FXZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.97%	6.20%	-0.23%
Volatility (6M) Calculated over the trailing 6-month period	19.56%	17.54%	+2.02%
Volatility (1Y) Calculated over the trailing 1-year period	24.76%	22.84%	+1.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.63%	24.15%	+3.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.74%	24.94%	+5.80%

SLX vs. FXZ - Expense Ratio Comparison

SLX has a 0.56% expense ratio, which is lower than FXZ's 0.67% expense ratio.

Dividends

SLX vs. FXZ - Dividend Comparison

SLX's dividend yield for the trailing twelve months is around 1.25%, less than FXZ's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXZ First Trust Materials AlphaDEX Fund	1.42%	1.74%	1.81%	1.97%	1.56%	1.11%	1.51%	1.58%	1.38%	1.01%	1.19%	1.26%
SLX VanEck Vectors Steel ETF	1.25%	1.55%	3.56%	2.80%	4.97%	7.07%	1.87%	3.44%	6.26%	2.50%	1.06%	5.35%

Frequently Asked Questions

Can I hold both SLX and FXZ in my portfolio?

SLX and FXZ have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SLX or FXZ?

FXZ has higher volatility (6.20%) compared to SLX (5.97%). In terms of maximum drawdown, SLX dropped -82.14% vs FXZ's -65.46%.

Which ETF is better, SLX or FXZ?

On 10-year performance, SLX leads with 17.02% vs 10.25% for FXZ. On fees, SLX is cheaper at 0.56% per year. On volatility, SLX has been the lower-risk option at 5.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SLX or FXZ?

Over the 10-year period, SLX has performed better with a 17.02% return vs 10.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SLX or FXZ?

SLX is cheaper with a 0.56% expense ratio, compared with 0.67% for FXZ.

Which ETF pays a higher dividend yield, SLX or FXZ?

FXZ has the higher dividend yield at 1.42%, compared with 1.25% for SLX.

What is the main difference between SLX and FXZ?

SLX tracks NYSE Arca Steel Index, while FXZ tracks StrataQuant Materials Index. They also come from different issuers: VanEck and First Trust. Their fees differ too: 0.56% for SLX and 0.67% for FXZ.

Which has better risk-adjusted returns?

SLX currently has the higher Sharpe Ratio (2.34 vs 1.57), 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.