FTCS vs PHEQ
First Trust Capital Strength ETF vs Parametric Hedged Equity ETF
Which is better, FTCS or PHEQ?
PHEQ has been ahead.
PHEQ has a lower expense ratio. PHEQ led over 1Y, 3Y and the full window. FTCS is less concentrated, with 22.5% of the fund in its ten largest positions against 40.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FTCS | PHEQ |
|---|---|---|
| Expense Ratio | 0.52% | 0.29%Best |
| AUM | $7.5B | $152M |
| Dividend Yield | 1.22% | 0.82% |
| Holdings | 102 | 374 |
| YTD Return | +6.41% | +9.39%Best |
| 1Y Return | +5.59% | +12.67%Best |
| 3Y Return (annualized) | +10.51% | +14.84%Best |
| 5Y Return (annualized) | +6.06% | - |
| Volatility (annualized) | 11.3% | 6.7%Best |
| Max Drawdown | -12.6%Tie | -12.6%Tie |
| $10,000 over 3 years | $13,706 | $15,145Best |
| Top 10 Weight | 22.5%Best | 40.8% |
| Fund Family | First Trust Portfolios (US) | Parametric |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Jul 6, 2006 | Oct 16, 2023 |
Volatility and max drawdown, and the $10,000 over 3 years row, are measured over the window both funds cover: Oct 19, 2023 to Oct 14, 2026 (3 years).
FTCS vs PHEQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 3 years both funds cover.
FTCS vs PHEQ Performance
First Trust Capital Strength ETF (FTCS) is an ETF from First Trust Portfolios (US) and Parametric Hedged Equity ETF (PHEQ) is an ETF from Parametric. Over the past year FTCS returned +5.59% while PHEQ returned +12.67%. Year to date, FTCS is up 6.41% versus a gain of 9.39% for PHEQ.
Over three years, FTCS compounded at +10.51% per year against +14.84% for PHEQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FTCS has been the more volatile fund, with annualized monthly volatility of 11.3% compared with 6.7% for PHEQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -12.6% for FTCS and -12.6% for PHEQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.45. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FTCS charges 0.52% per year while PHEQ charges 0.29%. On a $10,000 position that is $52 vs $29 annually, a gap of $23 per year that compounds over a long holding period. On income, FTCS currently yields 1.22% against 0.82% for PHEQ.
Holdings Overlap
36.6% of FTCS's money is in holdings PHEQ also owns. 18.5% of PHEQ's money is in holdings FTCS also owns.
The two portfolios partly overlap.
18 positions in common, counted across the 50 positions we hold weights for in FTCS and 174 in PHEQ, against full books of 102 and 374.
What only one of them owns
Our book lists 147 positions for PHEQ that do not appear in our book for FTCS (83.3% of the fund), and 32 for FTCS that do not appear in PHEQ (63.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FTCS | Weight in PHEQ | Difference |
|---|---|---|---|
| AAPLApple, Inc | 2.07% | 7.52% | 5.45% |
| JNJJohnson & Johnson | 2.09% | 1.40% | 0.69% |
| VVisa Inc. Cl A | 2.08% | 1.15% | 0.93% |
| MRKMerck & Co. Inc. | 2.34% | 0.85% | 1.49% |
| MAMastercard Inc. Cl A | 2.10% | 0.90% | 1.20% |
| KOCoca Cola Co. | 2.17% | 0.81% | 1.36% |
| AMGNAmgen Inc | 2.27% | 0.63% | 1.64% |
| WMTWalmart, Inc. | 1.89% | 0.91% | 0.98% |
| PGProcter & Gamble Company | 2.00% | 0.75% | 1.25% |
| RMDResmed Inc. | 2.27% | 0.30% | 1.97% |
36.6% of FTCS is already inside PHEQ.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FTCS or PHEQ?
FTCS has an expense ratio of 0.52% while PHEQ charges 0.29%. PHEQ is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, FTCS or PHEQ?
Over the past year FTCS returned +5.59% vs +12.67% for PHEQ, so PHEQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FTCS or PHEQ?
FTCS has been the more volatile fund at 11.3% annualized versus 6.7% for PHEQ. Worst drawdown: FTCS -12.6% vs PHEQ -12.6%.
Should I hold both FTCS and PHEQ?
FTCS and PHEQ have a monthly-return correlation of 0.45, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FTCS and PHEQ?
36.6% of FTCS's money is in holdings PHEQ also owns. 18.5% of PHEQ's is in holdings FTCS also owns. They hold 18 positions in common, counted across the 50 positions we hold weights for in FTCS and 174 in PHEQ.
Which pays a higher dividend, FTCS or PHEQ?
FTCS yields 1.22% while PHEQ yields 0.82%, so FTCS currently pays the higher dividend yield.
Is PHEQ better than FTCS?
PHEQ has a lower expense ratio. PHEQ led over 1Y, 3Y and the full window. FTCS is less concentrated, with 22.5% of the fund in its ten largest positions against 40.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.