FTXD vs XRT Fund Comparison

A comparison between FTXD and XRT based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on FTXD vs XRT

Here's an in depth look at the differences between First Trust Nasdaq Retail ETF($FTXD) and SPDR S&P Retail ETF($XRT).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • ftxd
  • ETF
  • Sector Equity
  • Consumer Cyclicals

First Trust Nasdaq Retail ETF

Expenses: 0.60% (Better than 0% of similar funds)

This is a bad choice for a Consumer Cyclicals Sector Equity fund. See why »

  • xrt
  • ETF
  • Sector Equity
  • Consumer Cyclicals

SPDR S&P Retail ETF

Expenses: 0.35% (Better than 1% of similar funds)

This is an OK choice for a Consumer Cyclicals Sector Equity fund. See why »

Both $FTXD and $XRT are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Both of these funds are Sector EquityConsumer Cyclicals funds – which means they're likely both investing in about the same investments behind the scenes.

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

FTXDXRT
Market Score 0.7 /10 7.6 /10
Category Score 0.0 /10 0.0 /10
Total0.77.6

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for FTXD is 0.0/10, while XRT has a diversification score of 3.1/10.

In other words, XRT more closely matches it's benchmark.

Winner: $XRT

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, FTXD has an expense ratio of 0.60% while XRT has an expense ratio of 0.35%.

Winner: $XRT

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, FTXD is a small fund with 3.45 Million in assets under management. XRT, on the other hand, is a large fund with 402 Million in assets under management.

Winner: $XRT, SPDR S&P Retail ETF

Which Should You Choose? FTXD or XRT?

Since both of these funds are Sector EquityConsumer Cyclicals funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives FTXD a score of 20 and XRT a score of 56.

Neither of these funds has an FI Score above 90 – which is a red flag. I'd look into more funds to find one with a higher FI Score.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$FTXD

First Trust Nasdaq Retail ETF

20

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Ratings
Rating TypeRating
Diversification Score0/10
Expense Ratio Score3/10
Expense Rating4/10
Market Score1/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateSep-20-2016
ExchangeNASDAQ
Expense Ratio0.600%
Net Assets3.45 Million
Yield1.28%
Holdings
DescriptionInfo
MarketSector Equity
CategoryConsumer Cyclicals
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.30%
  • Consumer Cyclicals 53.85%
  • Consumer Defensive 34.13%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 6.50%
  • Industrials 4.75%
  • Real Estate 0.00%
  • Technology 0.46%
  • Utilities 0.00%
Regions
  • North America 100.00%

$XRT

SPDR S&P Retail ETF

56

Read More
Ratings
Rating TypeRating
Diversification Score3/10
Expense Ratio Score7/10
Expense Rating7/10
Market Score8/10
Category Score0/10
Overview
OverviewDetails
Fund TypeETF
Inception DateJun-19-2006
ExchangeNYSE ARCA
Expense Ratio0.350%
Net Assets402 Million
Yield1.86%
Holdings
DescriptionInfo
MarketSector Equity
CategoryConsumer Cyclicals
Sectors
  • Basic Materials 0.00%
  • Communication Services 3.86%
  • Consumer Cyclicals 67.07%
  • Consumer Defensive 19.87%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 5.17%
  • Industrials 1.22%
  • Real Estate 0.00%
  • Technology 2.81%
  • Utilities 0.00%
Regions
  • North America 100.00%

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