VTWG vs. FYC

Last updated Jun 4, 2026

VTWG (Vanguard Russell 2000 Growth ETF) and FYC (First Trust Small Cap Growth AlphaDEX Fund) are both Small Cap Growth Equities funds - VTWG tracks the Russell 2000 Growth Index while FYC tracks the NASDAQ AlphaDEX Small Cap Growth Index. Both are passively managed. Over the past 10 years, VTWG returned 11.33%/yr vs 14.30%/yr for FYC. Their correlation of 0.93 suggests significant overlap in exposure. VTWG charges 0.15%/yr vs 0.71%/yr for FYC.

Performance

VTWG vs. FYC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Russell 2000 Growth ETF (VTWG) and First Trust Small Cap Growth AlphaDEX Fund (FYC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VTWG achieves a 16.90% return, which is significantly lower than FYC's 20.01% return. Over the past 10 years, VTWG has underperformed FYC with an annualized return of 11.33%, while FYC has yielded a comparatively higher 14.30% annualized return.

VTWG

• 1D: -1.35%
• 1M: 4.49%
• YTD: 16.90%
• 6M: 15.29%
• 1Y: 37.62%
• 3Y*: 18.23%
• 5Y*: 5.70%
• 10Y*: 11.33%

FYC

• 1D: -0.91%
• 1M: 3.23%
• YTD: 20.01%
• 6M: 20.96%
• 1Y: 53.40%
• 3Y*: 26.12%
• 5Y*: 10.47%
• 10Y*: 14.30%

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

VTWG vs. FYC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VTWG Vanguard Russell 2000 Growth ETF	16.90%	13.07%	15.15%	18.90%	-26.49%	2.84%	34.72%	28.75%	-9.45%	22.27%
FYC First Trust Small Cap Growth AlphaDEX Fund	20.01%	24.24%	23.99%	14.52%	-25.86%	21.64%	32.34%	16.79%	-5.54%	22.97%

Correlation

The correlation between VTWG and FYC is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.96
Correlation (All Time) Calculated using the full available price history since Apr 21, 2011	0.93

The correlation between VTWG and FYC has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.

VTWG vs. FYC - Sectors Allocation Comparison

Sectors	VTWG	FYC
Technology	23.5%	13.7%
Industrials	23.1%	13.4%
Healthcare	22.4%	27.9%
Financial Services	8.2%	10.3%
Consumer Cyclical	7.7%	9.9%
Basic Materials	4.2%	3.4%
Energy	3.5%	3.4%
Consumer Defensive	2.6%	3.8%
Communication Services	2.2%	3.4%
Real Estate	2.1%	8.4%
Utilities	0.7%	1.5%

Return for Risk

VTWG vs. FYC — Risk / Return Rank

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

VTWG

VTWG Risk / Return Rank: 49
VTWG Sharpe Ratio Rank: 50
VTWG Sortino Ratio Rank: 49
VTWG Omega Ratio Rank: 45
VTWG Calmar Ratio Rank: 50
VTWG Martin Ratio Rank: 53

FYC

FYC Risk / Return Rank: 79
FYC Sharpe Ratio Rank: 78
FYC Sortino Ratio Rank: 76
FYC Omega Ratio Rank: 68
FYC Calmar Ratio Rank: 88
FYC Martin Ratio Rank: 87

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.

VTWG vs. FYC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Russell 2000 Growth ETF (VTWG) and First Trust Small Cap Growth AlphaDEX Fund (FYC). 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.

	VTWG	FYC	Difference
Sharpe ratio: Return per unit of total volatility	1.76	2.55	-0.79
Sortino ratio: Return per unit of downside risk	2.44	3.45	-1.01
Omega ratio: Gain probability vs. loss probability	1.29	1.41	-0.12
Calmar ratio: Return relative to maximum drawdown	2.54	5.12	-2.58
Martin ratio: Return relative to average drawdown	9.16	18.64	-9.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VTWG vs. FYC - Sharpe Ratio Comparison

The current VTWG Sharpe Ratio is 1.76, which is lower than the FYC Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of VTWG and FYC, 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

	VTWG	FYC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	2.55	-0.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.45	-0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.58	-0.11
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.54	-0.02

Drawdowns

VTWG vs. FYC - Drawdown Comparison

The maximum VTWG drawdown since its inception was -42.07%, smaller than the maximum FYC drawdown of -47.85%. Use the drawdown chart below to compare losses from any high point for VTWG and FYC.

Drawdown Indicators

	VTWG	FYC	Difference
Max Drawdown Largest peak-to-trough decline	-42.07%	-47.85%	+5.78%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-10.48%	-4.40%
Max Drawdown (3Y) Largest decline over 3 years	-28.58%	-27.79%	-0.79%
Max Drawdown (5Y) Largest decline over 5 years	-40.49%	-35.37%	-5.12%
Max Drawdown (10Y) Largest decline over 10 years	-42.07%	-47.85%	+5.78%
Current Drawdown Current decline from peak	-1.39%	-1.83%	+0.44%
Average Drawdown Average peak-to-trough decline	-10.53%	-9.66%	-0.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.12%	2.87%	+1.25%

Volatility

VTWG vs. FYC - Volatility Comparison

Vanguard Russell 2000 Growth ETF (VTWG) has a higher volatility of 6.62% compared to First Trust Small Cap Growth AlphaDEX Fund (FYC) at 5.53%. This indicates that VTWG's price experiences larger fluctuations and is considered to be riskier than FYC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VTWG	FYC	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.62%	5.53%	+1.09%
Volatility (6M) Calculated over the trailing 6-month period	15.90%	14.99%	+0.91%
Volatility (1Y) Calculated over the trailing 1-year period	21.50%	21.03%	+0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.52%	23.62%	+0.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.21%	24.57%	-0.36%

VTWG vs. FYC - Expense Ratio Comparison

VTWG has a 0.15% expense ratio, which is lower than FYC's 0.71% expense ratio.

Dividends

VTWG vs. FYC - Dividend Comparison

VTWG's dividend yield for the trailing twelve months is around 0.59%, more than FYC's 0.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FYC First Trust Small Cap Growth AlphaDEX Fund	0.07%	0.08%	0.72%	0.58%	0.00%	0.63%	0.12%	0.39%	0.09%	0.10%	0.31%	0.21%
VTWG Vanguard Russell 2000 Growth ETF	0.59%	0.64%	0.55%	0.79%	0.71%	0.54%	0.48%	0.72%	0.72%	0.64%	0.96%	0.72%

Frequently Asked Questions

Can I hold both VTWG and FYC in my portfolio?

With a correlation of 0.96, VTWG and FYC 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, VTWG or FYC?

VTWG has higher volatility (6.62%) compared to FYC (5.53%). In terms of maximum drawdown, VTWG dropped -42.07% vs FYC's -47.85%.

Which ETF is better, VTWG or FYC?

On 10-year performance, FYC leads with 14.30% vs 11.33% for VTWG. On fees, VTWG is cheaper at 0.15% per year. On volatility, FYC has been the lower-risk option at 5.53%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VTWG or FYC?

Over the 10-year period, FYC has performed better with a 14.30% return vs 11.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VTWG or FYC?

VTWG is cheaper with a 0.15% expense ratio, compared with 0.71% for FYC.

Which ETF pays a higher dividend yield, VTWG or FYC?

VTWG has the higher dividend yield at 0.59%, compared with 0.07% for FYC.

What is the main difference between VTWG and FYC?

VTWG tracks Russell 2000 Growth Index, while FYC tracks NASDAQ AlphaDEX Small Cap Growth Index. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.15% for VTWG and 0.71% for FYC.

Which has better risk-adjusted returns?

FYC currently has the higher Sharpe Ratio (2.55 vs 1.76), 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.