TEK vs. NXTG

Last updated Jul 14, 2026

TEK (iShares Technology Opportunities Active ETF) and NXTG (First Trust IndXX NextG ETF) are both Technology Equities funds. TEK is actively managed, while NXTG is passively managed. Over the past year, TEK returned 39.18% vs 56.52% for NXTG. A 0.79 correlation means they provide meaningful diversification when combined. TEK charges 0.75%/yr vs 0.70%/yr for NXTG.

Performance

TEK vs. NXTG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Technology Opportunities Active ETF (TEK) and First Trust IndXX NextG ETF (NXTG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TEK achieves a 27.66% return, which is significantly lower than NXTG's 39.14% return.

TEK

• 1D: -4.31%
• 1M: -5.00%
• 6M: 23.88%
• YTD: 27.66%
• 1Y: 39.18%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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%

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

TEK vs. NXTG - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TEK iShares Technology Opportunities Active ETF	27.66%	18.63%	2.63%
NXTG First Trust IndXX NextG ETF	39.14%	28.46%	-2.04%

Correlation

The correlation between TEK and NXTG is 0.84, 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	0.84
Correlation (All Time) Calculated using the full available price history since Oct 22, 2024	0.79

The correlation between TEK and NXTG has been stable across timeframes, ranging from 0.79 to 0.84 - a consistent structural relationship.

TEK vs. NXTG - Sectors Allocation Comparison

Sectors	TEK	NXTG
Technology	86.1%	71.2%
Communication Services	6.0%	18.1%
Consumer Cyclical	4.0%	0.4%
Industrials	2.7%	4.2%
Basic Materials	0.9%	-
Financial Services	0.3%	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Real Estate	-	6.2%
Utilities	-	-

Return for Risk

TEK vs. NXTG — Risk / Return Rank

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

TEK

TEK Risk / Return Rank: 45
TEK Sharpe Ratio Rank: 45
TEK Sortino Ratio Rank: 42
TEK Omega Ratio Rank: 44
TEK Calmar Ratio Rank: 51
TEK Martin Ratio Rank: 43

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

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.

TEK vs. NXTG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Technology Opportunities Active ETF (TEK) and First Trust IndXX NextG ETF (NXTG). 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.

	TEK	NXTG	Difference
Sharpe ratio: Return per unit of total volatility	1.27	2.61	-1.34
Sortino ratio: Return per unit of downside risk	1.75	3.26	-1.51
Omega ratio: Gain probability vs. loss probability	1.23	1.46	-0.22
Calmar ratio: Return relative to maximum drawdown	2.04	4.77	-2.73
Martin ratio: Return relative to average drawdown	5.62	14.87	-9.25

TEK vs. NXTG - Sharpe Ratio Comparison

The current TEK Sharpe Ratio is 1.27, which is lower than the NXTG Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of TEK and NXTG, 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

TEK vs. NXTG - Drawdown Comparison

The maximum TEK drawdown since its inception was -28.24%, smaller than the maximum NXTG drawdown of -33.61%. Use the drawdown chart below to compare losses from any high point for TEK and NXTG.

Drawdown Indicators

	TEK	NXTG	Difference
Max Drawdown Largest peak-to-trough decline	-28.24%	-33.61%	+5.37%
Max Drawdown (1Y) Largest decline over 1 year	-19.29%	-11.91%	-7.38%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.75%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-33.61%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.61%	—
Current Drawdown Current decline from peak	-11.40%	-10.70%	-0.70%
Average Drawdown Average peak-to-trough decline	-5.90%	-7.92%	+2.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.99%	3.81%	+3.18%

Volatility

TEK vs. NXTG - Volatility Comparison

iShares Technology Opportunities Active ETF (TEK) has a higher volatility of 15.63% compared to First Trust IndXX NextG ETF (NXTG) at 9.13%. This indicates that TEK's price experiences larger fluctuations and is considered to be riskier than NXTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TEK	NXTG	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.63%	9.13%	+6.50%
Volatility (6M) Calculated over the trailing 6-month period	27.20%	19.28%	+7.92%
Volatility (1Y) Calculated over the trailing 1-year period	31.05%	21.78%	+9.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.44%	18.67%	+12.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.44%	19.06%	+12.38%

TEK vs. NXTG - Expense Ratio Comparison

TEK has a 0.75% expense ratio, which is higher than NXTG's 0.70% expense ratio.

Dividends

TEK vs. NXTG - Dividend Comparison

TEK's dividend yield for the trailing twelve months is around 1.24%, which matches NXTG's 1.24% 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%
TEK iShares Technology Opportunities Active ETF	1.24%	1.62%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TEK and NXTG in my portfolio?

TEK and NXTG have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TEK or NXTG?

TEK has higher volatility (15.63%) compared to NXTG (9.13%). In terms of maximum drawdown, TEK dropped -28.24% vs NXTG's -33.61%.

Which ETF is better, TEK or NXTG?

On 1-year performance, NXTG leads with 56.52% vs 39.18% for TEK. On fees, NXTG is cheaper at 0.70% per year. On volatility, NXTG has been the lower-risk option at 9.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TEK or NXTG?

Over the 1-year period, NXTG has performed better with a 56.52% return vs 39.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TEK or NXTG?

NXTG is cheaper with a 0.70% expense ratio, compared with 0.75% for TEK.

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

TEK and NXTG have nearly identical dividend yields, around 1.24%.

What is the main difference between TEK and NXTG?

They also come from different issuers: iShares and First Trust. Their fees differ too: 0.75% for TEK and 0.70% for NXTG.

Which has better risk-adjusted returns?

NXTG currently has the higher Sharpe Ratio (2.61 vs 1.27), 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.