TRFM vs. NXTG

Last updated Jun 25, 2026

TRFM (AAM Transformers ETF) and NXTG (First Trust IndXX NextG ETF) are both Technology Equities funds - TRFM tracks the Pence Transformers Index - Benchmark TR Gross while NXTG tracks the Indxx 5G & NextG Thematic Index. Both are passively managed. Over the past 3 years, TRFM returned 29.94%/yr vs 32.48%/yr for NXTG. Their correlation of 0.83 suggests significant overlap in exposure. TRFM charges 0.49%/yr vs 0.70%/yr for NXTG.

Performance

TRFM vs. NXTG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AAM Transformers ETF (TRFM) 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, TRFM achieves a 26.82% return, which is significantly lower than NXTG's 43.16% return.

TRFM

• 1D: -0.28%
• 1M: 3.37%
• YTD: 26.82%
• 6M: 24.89%
• 1Y: 43.37%
• 3Y*: 29.94%
• 5Y*: —
• 10Y*: —

NXTG

• 1D: -0.36%
• 1M: 2.69%
• YTD: 43.16%
• 6M: 42.94%
• 1Y: 62.04%
• 3Y*: 32.48%
• 5Y*: 17.33%
• 10Y*: 17.37%

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

TRFM vs. NXTG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
TRFM AAM Transformers ETF	26.82%	25.76%	19.96%	44.71%	-9.92%
NXTG First Trust IndXX NextG ETF	43.16%	28.46%	12.85%	28.74%	-3.48%

Correlation

The correlation between TRFM and NXTG is 0.87, 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	0.87
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (All Time) Calculated using the full available price history since Jul 12, 2022	0.83

The correlation between TRFM and NXTG has been stable across timeframes, ranging from 0.83 to 0.87 - a consistent structural relationship.

TRFM vs. NXTG - Sectors Allocation Comparison

Sectors	TRFM	NXTG
Technology	53.3%	71.2%
Consumer Cyclical	17.7%	0.4%
Communication Services	12.3%	18.1%
Industrials	7.2%	4.2%
Energy	3.5%	-
Financial Services	2.8%	-
Utilities	1.7%	-
Basic Materials	1.2%	-
Healthcare	0.2%	-
Consumer Defensive	-	-
Real Estate	-	6.2%

Return for Risk

TRFM vs. NXTG — Risk / Return Rank

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

TRFM

TRFM Risk / Return Rank: 62
TRFM Sharpe Ratio Rank: 61
TRFM Sortino Ratio Rank: 54
TRFM Omega Ratio Rank: 55
TRFM Calmar Ratio Rank: 74
TRFM Martin Ratio Rank: 67

NXTG

NXTG Risk / Return Rank: 91
NXTG Sharpe Ratio Rank: 93
NXTG Sortino Ratio Rank: 89
NXTG Omega Ratio Rank: 91
NXTG Calmar Ratio Rank: 92
NXTG Martin Ratio Rank: 91

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.

TRFM vs. NXTG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AAM Transformers ETF (TRFM) 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.

	TRFM	NXTG	Difference
Sharpe ratio: Return per unit of total volatility	1.79	2.93	-1.13
Sortino ratio: Return per unit of downside risk	2.33	3.61	-1.28
Omega ratio: Gain probability vs. loss probability	1.30	1.52	-0.22
Calmar ratio: Return relative to maximum drawdown	3.36	5.45	-2.09
Martin ratio: Return relative to average drawdown	10.85	19.76	-8.91

TRFM vs. NXTG - Sharpe Ratio Comparison

The current TRFM Sharpe Ratio is 1.79, which is lower than the NXTG Sharpe Ratio of 2.93. The chart below compares the historical Sharpe Ratios of TRFM 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

TRFM vs. NXTG - Drawdown Comparison

The maximum TRFM drawdown since its inception was -28.40%, smaller than the maximum NXTG drawdown of -33.61%. Use the drawdown chart below to compare losses from any high point for TRFM and NXTG.

Drawdown Indicators

	TRFM	NXTG	Difference
Max Drawdown Largest peak-to-trough decline	-28.40%	-33.61%	+5.21%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-11.45%	-1.54%
Max Drawdown (3Y) Largest decline over 3 years	-28.40%	-17.75%	-10.65%
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	-3.87%	-8.13%	+4.26%
Average Drawdown Average peak-to-trough decline	-6.58%	-7.91%	+1.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	3.15%	+0.86%

Volatility

TRFM vs. NXTG - Volatility Comparison

The current volatility for AAM Transformers ETF (TRFM) is 11.26%, while First Trust IndXX NextG ETF (NXTG) has a volatility of 12.80%. This indicates that TRFM experiences smaller price fluctuations and is considered to be less risky than NXTG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRFM	NXTG	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.26%	12.80%	-1.54%
Volatility (6M) Calculated over the trailing 6-month period	19.61%	18.72%	+0.89%
Volatility (1Y) Calculated over the trailing 1-year period	24.43%	21.37%	+3.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.26%	18.56%	+8.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.26%	19.10%	+8.16%

TRFM vs. NXTG - Expense Ratio Comparison

TRFM has a 0.49% expense ratio, which is lower than NXTG's 0.70% expense ratio.

Dividends

TRFM vs. NXTG - Dividend Comparison

TRFM's dividend yield for the trailing twelve months is around 0.13%, less than NXTG's 1.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NXTG First Trust IndXX NextG ETF	1.19%	1.56%	1.51%	2.15%	2.04%	1.97%	1.04%	0.77%	1.27%	1.65%	1.23%	1.11%
TRFM AAM Transformers ETF	0.13%	0.17%	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 TRFM and NXTG in my portfolio?

TRFM and NXTG have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TRFM or NXTG?

NXTG has higher volatility (12.80%) compared to TRFM (11.26%). In terms of maximum drawdown, TRFM dropped -28.40% vs NXTG's -33.61%.

Which ETF is better, TRFM or NXTG?

On 3-year performance, NXTG leads with 32.48% vs 29.94% for TRFM. On fees, TRFM is cheaper at 0.49% per year. On volatility, TRFM has been the lower-risk option at 11.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TRFM or NXTG?

Over the 3-year period, NXTG has performed better with a 32.48% return vs 29.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TRFM or NXTG?

TRFM is cheaper with a 0.49% expense ratio, compared with 0.70% for NXTG.

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

NXTG has the higher dividend yield at 1.19%, compared with 0.13% for TRFM.

What is the main difference between TRFM and NXTG?

TRFM tracks Pence Transformers Index - Benchmark TR Gross, while NXTG tracks Indxx 5G & NextG Thematic Index. They also come from different issuers: AAM and First Trust. Their fees differ too: 0.49% for TRFM and 0.70% for NXTG.

Which has better risk-adjusted returns?

NXTG currently has the higher Sharpe Ratio (2.93 vs 1.79), 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.