TLTE vs. FDT

Last updated Jun 5, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and FDT (First Trust Developed Markets ex-US AlphaDEX Fund) are both Foreign Large Cap Equities funds - TLTE tracks the Morningstar Emerging Markets Factor Tilt Index while FDT tracks the NASDAQ AlphaDEX DM Ex-US Index. Both are passively managed. Over the past 10 years, TLTE returned 9.47%/yr vs 10.76%/yr for FDT. A 0.78 correlation means they provide meaningful diversification when combined. TLTE charges 0.59%/yr vs 0.80%/yr for FDT.

Performance

TLTE vs. FDT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and First Trust Developed Markets ex-US AlphaDEX Fund (FDT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTE achieves a 23.54% return, which is significantly lower than FDT's 24.89% return. Over the past 10 years, TLTE has underperformed FDT with an annualized return of 9.47%, while FDT has yielded a comparatively higher 10.76% annualized return.

TLTE

• 1D: -0.69%
• 1M: 3.64%
• YTD: 23.54%
• 6M: 25.97%
• 1Y: 45.35%
• 3Y*: 22.09%
• 5Y*: 7.43%
• 10Y*: 9.47%

FDT

• 1D: -0.48%
• 1M: 2.67%
• YTD: 24.89%
• 6M: 27.78%
• 1Y: 53.72%
• 3Y*: 29.96%
• 5Y*: 12.44%
• 10Y*: 10.76%

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

TLTE vs. FDT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	23.54%	30.21%	3.53%	13.62%	-17.31%	4.79%	12.10%	14.51%	-17.44%	32.82%
FDT First Trust Developed Markets ex-US AlphaDEX Fund	24.89%	52.21%	6.97%	15.03%	-19.51%	11.43%	4.29%	16.82%	-19.98%	34.42%

Correlation

The correlation between TLTE and FDT 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 (3Y) Calculated over the trailing 3-year period	0.76
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (10Y) Calculated over the trailing 10-year period	0.80
Correlation (All Time) Calculated using the full available price history since Oct 3, 2012	0.78

The correlation between TLTE and FDT has been stable across timeframes, ranging from 0.76 to 0.84 - a consistent structural relationship.

TLTE vs. FDT - Sectors Allocation Comparison

Sectors	TLTE	FDT
Technology	27.3%	8.1%
Financial Services	18.9%	10.2%
Industrials	11.7%	34.0%
Consumer Cyclical	10.5%	11.5%
Basic Materials	7.7%	9.6%
Communication Services	4.6%	2.7%
Energy	4.4%	9.2%
Real Estate	4.3%	5.3%
Consumer Defensive	4.2%	2.8%
Utilities	3.1%	5.2%
Healthcare	3.1%	1.4%

Return for Risk

TLTE vs. FDT — Risk / Return Rank

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

TLTE

TLTE Risk / Return Rank: 75
TLTE Sharpe Ratio Rank: 78
TLTE Sortino Ratio Rank: 73
TLTE Omega Ratio Rank: 77
TLTE Calmar Ratio Rank: 71
TLTE Martin Ratio Rank: 74

FDT

FDT Risk / Return Rank: 84
FDT Sharpe Ratio Rank: 88
FDT Sortino Ratio Rank: 85
FDT Omega Ratio Rank: 86
FDT Calmar Ratio Rank: 79
FDT Martin Ratio Rank: 81

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.

TLTE vs. FDT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and First Trust Developed Markets ex-US AlphaDEX Fund (FDT). 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.

	TLTE	FDT	Difference
Sharpe ratio: Return per unit of total volatility	2.48	2.93	-0.45
Sortino ratio: Return per unit of downside risk	3.27	3.77	-0.50
Omega ratio: Gain probability vs. loss probability	1.45	1.52	-0.07
Calmar ratio: Return relative to maximum drawdown	3.50	4.03	-0.53
Martin ratio: Return relative to average drawdown	13.71	15.71	-2.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLTE vs. FDT - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 2.48, which is comparable to the FDT Sharpe Ratio of 2.93. The chart below compares the historical Sharpe Ratios of TLTE and FDT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TLTE	FDT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.48	2.93	-0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.69	-0.24
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	0.58	-0.07
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.39	-0.05

Drawdowns

TLTE vs. FDT - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, roughly equal to the maximum FDT drawdown of -46.10%. Use the drawdown chart below to compare losses from any high point for TLTE and FDT.

Drawdown Indicators

	TLTE	FDT	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-46.10%	+1.89%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-13.41%	+0.37%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-14.29%	-3.14%
Max Drawdown (5Y) Largest decline over 5 years	-33.51%	-33.18%	-0.33%
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	-46.10%	+1.89%
Current Drawdown Current decline from peak	-1.98%	-2.07%	+0.09%
Average Drawdown Average peak-to-trough decline	-12.15%	-10.77%	-1.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.32%	3.43%	-0.11%

Volatility

TLTE vs. FDT - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a higher volatility of 7.87% compared to First Trust Developed Markets ex-US AlphaDEX Fund (FDT) at 7.03%. This indicates that TLTE's price experiences larger fluctuations and is considered to be riskier than FDT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTE	FDT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.87%	7.03%	+0.84%
Volatility (6M) Calculated over the trailing 6-month period	16.12%	15.93%	+0.19%
Volatility (1Y) Calculated over the trailing 1-year period	18.43%	18.42%	+0.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.83%	18.23%	-1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.40%	18.52%	-0.12%

TLTE vs. FDT - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is lower than FDT's 0.80% expense ratio.

Dividends

TLTE vs. FDT - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.04%, more than FDT's 2.85% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDT First Trust Developed Markets ex-US AlphaDEX Fund	2.85%	3.27%	3.89%	4.36%	2.29%	3.80%	2.42%	2.78%	2.13%	1.57%	1.76%	1.83%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.04%	3.76%	3.73%	4.03%	4.42%	3.21%	1.95%	3.23%	3.02%	2.12%	2.30%	2.00%

Frequently Asked Questions

Can I hold both TLTE and FDT in my portfolio?

TLTE and FDT 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, TLTE or FDT?

TLTE has higher volatility (7.87%) compared to FDT (7.03%). In terms of maximum drawdown, TLTE dropped -44.21% vs FDT's -46.10%.

Which ETF is better, TLTE or FDT?

On 10-year performance, FDT leads with 10.76% vs 9.47% for TLTE. On fees, TLTE is cheaper at 0.59% per year. On volatility, FDT has been the lower-risk option at 7.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or FDT?

Over the 10-year period, FDT has performed better with a 10.76% return vs 9.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or FDT?

TLTE is cheaper with a 0.59% expense ratio, compared with 0.80% for FDT.

Which ETF pays a higher dividend yield, TLTE or FDT?

TLTE has the higher dividend yield at 3.04%, compared with 2.85% for FDT.

What is the main difference between TLTE and FDT?

TLTE tracks Morningstar Emerging Markets Factor Tilt Index, while FDT tracks NASDAQ AlphaDEX DM Ex-US Index. They also come from different issuers: Northern Trust and First Trust. Their fees differ too: 0.59% for TLTE and 0.80% for FDT.

Which has better risk-adjusted returns?

FDT currently has the higher Sharpe Ratio (2.93 vs 2.48), 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.