VSS vs. FDTS

Last updated Jun 4, 2026

VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) and FDTS (First Trust Developed Markets ex-US Small Cap AlphaDEX Fund) are both Foreign Small & Mid Cap Equities funds - VSS tracks the FTSE Global Small Cap ex US Index while FDTS tracks the NASDAQ AlphaDEX DM Ex-US Small Cap Index. Both are passively managed. Over the past 10 years, VSS returned 8.07%/yr vs 10.50%/yr for FDTS. A 0.58 correlation means they provide meaningful diversification when combined. VSS charges 0.07%/yr vs 0.80%/yr for FDTS.

Performance

VSS vs. FDTS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSS achieves a 10.57% return, which is significantly lower than FDTS's 16.64% return. Over the past 10 years, VSS has underperformed FDTS with an annualized return of 8.07%, while FDTS has yielded a comparatively higher 10.50% annualized return.

VSS

• 1D: -1.12%
• 1M: 1.27%
• YTD: 10.57%
• 6M: 13.10%
• 1Y: 27.32%
• 3Y*: 16.67%
• 5Y*: 5.76%
• 10Y*: 8.07%

FDTS

• 1D: -1.14%
• 1M: -2.48%
• YTD: 16.64%
• 6M: 19.06%
• 1Y: 45.71%
• 3Y*: 25.36%
• 5Y*: 10.59%
• 10Y*: 10.50%

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

VSS vs. FDTS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.57%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	16.64%	51.17%	2.44%	10.96%	-15.34%	11.79%	12.90%	18.71%	-23.71%	36.01%

Correlation

The correlation between VSS and FDTS is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Feb 17, 2012	0.58

Over the past year, VSS and FDTS have become more correlated (0.91) than their long-term average of 0.58, meaning their price movements have been converging.

VSS vs. FDTS - Sectors Allocation Comparison

Sectors	VSS	FDTS
Industrials	18.7%	23.0%
Technology	13.3%	13.4%
Basic Materials	12.1%	11.2%
Financial Services	10.8%	11.7%
Consumer Cyclical	9.3%	18.4%
Real Estate	7.3%	4.3%
Healthcare	6.2%	3.0%
Energy	4.9%	4.3%
Consumer Defensive	3.4%	5.0%
Utilities	2.5%	2.7%
Communication Services	2.3%	3.0%

Return for Risk

VSS vs. FDTS — Risk / Return Rank

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

VSS

VSS Risk / Return Rank: 51
VSS Sharpe Ratio Rank: 53
VSS Sortino Ratio Rank: 51
VSS Omega Ratio Rank: 54
VSS Calmar Ratio Rank: 47
VSS Martin Ratio Rank: 53

FDTS

FDTS Risk / Return Rank: 76
FDTS Sharpe Ratio Rank: 82
FDTS Sortino Ratio Rank: 78
FDTS Omega Ratio Rank: 77
FDTS Calmar Ratio Rank: 73
FDTS Martin Ratio Rank: 71

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.

VSS vs. FDTS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) and First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS). 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.

	VSS	FDTS	Difference
Sharpe ratio: Return per unit of total volatility	1.85	2.69	-0.84
Sortino ratio: Return per unit of downside risk	2.54	3.52	-0.98
Omega ratio: Gain probability vs. loss probability	1.34	1.46	-0.12
Calmar ratio: Return relative to maximum drawdown	2.36	3.64	-1.28
Martin ratio: Return relative to average drawdown	9.13	13.32	-4.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSS vs. FDTS - Sharpe Ratio Comparison

The current VSS Sharpe Ratio is 1.85, which is lower than the FDTS Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of VSS and FDTS, 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

	VSS	FDTS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.85	2.69	-0.84
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	0.36	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.42	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.55	0.37	+0.18

Drawdowns

VSS vs. FDTS - Drawdown Comparison

The maximum VSS drawdown since its inception was -43.51%, smaller than the maximum FDTS drawdown of -51.26%. Use the drawdown chart below to compare losses from any high point for VSS and FDTS.

Drawdown Indicators

	VSS	FDTS	Difference
Max Drawdown Largest peak-to-trough decline	-43.51%	-51.26%	+7.75%
Max Drawdown (1Y) Largest decline over 1 year	-11.62%	-12.61%	+0.99%
Max Drawdown (3Y) Largest decline over 3 years	-15.73%	-13.19%	-2.54%
Max Drawdown (5Y) Largest decline over 5 years	-33.93%	-33.11%	-0.82%
Max Drawdown (10Y) Largest decline over 10 years	-43.51%	-51.26%	+7.75%
Current Drawdown Current decline from peak	-2.58%	-6.49%	+3.91%
Average Drawdown Average peak-to-trough decline	-9.64%	-10.65%	+1.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.00%	3.44%	-0.44%

Volatility

VSS vs. FDTS - Volatility Comparison

The current volatility for Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is 5.33%, while First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) has a volatility of 6.54%. This indicates that VSS experiences smaller price fluctuations and is considered to be less risky than FDTS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSS	FDTS	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.33%	6.54%	-1.21%
Volatility (6M) Calculated over the trailing 6-month period	12.64%	14.09%	-1.45%
Volatility (1Y) Calculated over the trailing 1-year period	14.81%	17.05%	-2.24%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	29.28%	-12.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	24.85%	-7.58%

VSS vs. FDTS - Expense Ratio Comparison

VSS has a 0.07% expense ratio, which is lower than FDTS's 0.80% expense ratio.

Dividends

VSS vs. FDTS - Dividend Comparison

VSS's dividend yield for the trailing twelve months is around 3.07%, more than FDTS's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX Fund	2.58%	2.94%	3.94%	2.90%	3.71%	3.01%	2.02%	2.30%	1.96%	2.08%	1.78%	1.73%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.07%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both VSS and FDTS in my portfolio?

With a correlation of 0.91, VSS and FDTS move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VSS or FDTS?

FDTS has higher volatility (6.54%) compared to VSS (5.33%). In terms of maximum drawdown, VSS dropped -43.51% vs FDTS's -51.26%.

Which ETF is better, VSS or FDTS?

On 10-year performance, FDTS leads with 10.50% vs 8.07% for VSS. On fees, VSS is cheaper at 0.07% per year. On volatility, VSS has been the lower-risk option at 5.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSS or FDTS?

Over the 10-year period, FDTS has performed better with a 10.50% return vs 8.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSS or FDTS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.80% for FDTS.

Which ETF pays a higher dividend yield, VSS or FDTS?

VSS has the higher dividend yield at 3.07%, compared with 2.58% for FDTS.

What is the main difference between VSS and FDTS?

VSS tracks FTSE Global Small Cap ex US Index, while FDTS tracks NASDAQ AlphaDEX DM Ex-US Small Cap Index. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.07% for VSS and 0.80% for FDTS.

Which has better risk-adjusted returns?

FDTS currently has the higher Sharpe Ratio (2.69 vs 1.85), 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.