VCR vs. FXD

Last updated Jun 3, 2026

VCR (Vanguard Consumer Discretionary ETF) and FXD (First Trust Consumer Discretionary AlphaDEX Fund) are both Consumer Discretionary Equities funds - VCR tracks the MSCI US Investable Market Consumer Discretionary 25/50 Index while FXD tracks the StrataQuant Consumer Discretionary Index. Both are passively managed. Over the past 10 years, VCR returned 13.55%/yr vs 7.93%/yr for FXD. Their correlation of 0.87 suggests significant overlap in exposure. VCR charges 0.10%/yr vs 0.63%/yr for FXD.

Performance

VCR vs. FXD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Consumer Discretionary ETF (VCR) and First Trust Consumer Discretionary AlphaDEX Fund (FXD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VCR achieves a 0.01% return, which is significantly higher than FXD's -1.49% return. Over the past 10 years, VCR has outperformed FXD with an annualized return of 13.55%, while FXD has yielded a comparatively lower 7.93% annualized return.

VCR

• 1D: -0.34%
• 1M: -0.28%
• YTD: 0.01%
• 6M: 0.97%
• 1Y: 11.24%
• 3Y*: 15.28%
• 5Y*: 6.49%
• 10Y*: 13.55%

FXD

• 1D: -0.68%
• 1M: 0.69%
• YTD: -1.49%
• 6M: 0.09%
• 1Y: 10.66%
• 3Y*: 10.47%
• 5Y*: 3.18%
• 10Y*: 7.93%

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

VCR vs. FXD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VCR Vanguard Consumer Discretionary ETF	0.01%	5.77%	24.27%	40.38%	-35.15%	24.86%	48.36%	27.45%	-2.31%	22.82%
FXD First Trust Consumer Discretionary AlphaDEX Fund	-1.49%	6.70%	10.57%	23.39%	-21.56%	22.72%	12.97%	24.22%	-11.60%	19.77%

Correlation

The correlation between VCR and FXD is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.87

The correlation between VCR and FXD has been stable across timeframes, ranging from 0.80 to 0.87 - a consistent structural relationship.

Return for Risk

VCR vs. FXD — Risk / Return Rank

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

VCR

VCR Risk / Return Rank: 19
VCR Sharpe Ratio Rank: 19
VCR Sortino Ratio Rank: 19
VCR Omega Ratio Rank: 18
VCR Calmar Ratio Rank: 18
VCR Martin Ratio Rank: 19

FXD

FXD Risk / Return Rank: 18
FXD Sharpe Ratio Rank: 18
FXD Sortino Ratio Rank: 18
FXD Omega Ratio Rank: 17
FXD Calmar Ratio Rank: 18
FXD Martin Ratio Rank: 18

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.

VCR vs. FXD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Consumer Discretionary ETF (VCR) and First Trust Consumer Discretionary AlphaDEX Fund (FXD). 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.

	VCR	FXD	Difference
Sharpe ratio Return per unit of total volatility	0.61	0.56	+0.05
Sortino ratio Return per unit of downside risk	0.97	0.95	+0.02
Omega ratio Gain probability vs. loss probability	1.12	1.10	+0.01
Calmar ratio Return relative to maximum drawdown	0.73	0.73	0.00
Martin ratio Return relative to average drawdown	2.28	1.85	+0.43
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VCR vs. FXD - Sharpe Ratio Comparison

The current VCR Sharpe Ratio is 0.61, which is comparable to the FXD Sharpe Ratio of 0.56. The chart below compares the historical Sharpe Ratios of VCR and FXD, 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

	VCR	FXD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.61	0.56	+0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.14	+0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.61	0.34	+0.27
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.31	+0.20

Drawdowns

VCR vs. FXD - Drawdown Comparison

The maximum VCR drawdown since its inception was -61.54%, smaller than the maximum FXD drawdown of -65.27%. Use the drawdown chart below to compare losses from any high point for VCR and FXD.

Drawdown Indicators

	VCR	FXD	Difference
Max Drawdown Largest peak-to-trough decline	-61.54%	-65.27%	+3.73%
Max Drawdown (1Y) Largest decline over 1 year	-15.59%	-13.94%	-1.65%
Max Drawdown (3Y) Largest decline over 3 years	-27.36%	-26.02%	-1.34%
Max Drawdown (5Y) Largest decline over 5 years	-39.20%	-33.74%	-5.46%
Max Drawdown (10Y) Largest decline over 10 years	-39.20%	-49.54%	+10.34%
Current Drawdown Current decline from peak	-4.54%	-6.76%	+2.22%
Average Drawdown Average peak-to-trough decline	-9.40%	-10.97%	+1.57%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.96%	5.46%	-0.50%

Volatility

VCR vs. FXD - Volatility Comparison

The current volatility for Vanguard Consumer Discretionary ETF (VCR) is 5.22%, while First Trust Consumer Discretionary AlphaDEX Fund (FXD) has a volatility of 6.52%. This indicates that VCR experiences smaller price fluctuations and is considered to be less risky than FXD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VCR	FXD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.22%	6.52%	-1.30%
Volatility (6M) Calculated over the trailing 6-month period	13.06%	14.22%	-1.16%
Volatility (1Y) Calculated over the trailing 1-year period	18.46%	19.22%	-0.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.99%	22.70%	+1.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.41%	23.68%	-1.27%

VCR vs. FXD - Expense Ratio Comparison

VCR has a 0.10% expense ratio, which is lower than FXD's 0.63% expense ratio.

Dividends

VCR vs. FXD - Dividend Comparison

VCR's dividend yield for the trailing twelve months is around 0.73%, less than FXD's 0.78% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXD First Trust Consumer Discretionary AlphaDEX Fund	0.78%	0.80%	0.89%	0.70%	1.00%	0.62%	0.42%	0.92%	1.08%	0.93%	1.05%	0.90%
VCR Vanguard Consumer Discretionary ETF	0.73%	0.74%	0.74%	0.84%	0.98%	0.79%	1.71%	1.17%	1.37%	1.21%	1.60%	1.32%

Frequently Asked Questions

Can I hold both VCR and FXD in my portfolio?

VCR and FXD have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VCR or FXD?

FXD has higher volatility (6.52%) compared to VCR (5.22%). In terms of maximum drawdown, VCR dropped -61.54% vs FXD's -65.27%.

Which ETF is better, VCR or FXD?

On 10-year performance, VCR leads with 13.55% vs 7.93% for FXD. On fees, VCR is cheaper at 0.10% per year. On volatility, VCR has been the lower-risk option at 5.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VCR or FXD?

Over the 10-year period, VCR has performed better with a 13.55% return vs 7.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VCR or FXD?

VCR is cheaper with a 0.10% expense ratio, compared with 0.63% for FXD.

Which ETF pays a higher dividend yield, VCR or FXD?

FXD has the higher dividend yield at 0.78%, compared with 0.73% for VCR.

What is the main difference between VCR and FXD?

VCR tracks MSCI US Investable Market Consumer Discretionary 25/50 Index, while FXD tracks StrataQuant Consumer Discretionary Index. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.10% for VCR and 0.63% for FXD.

Which has better risk-adjusted returns?

VCR currently has the higher Sharpe Ratio (0.61 vs 0.56), 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.