FTCB vs PHDG
First Trust Core Investment Grade ETF vs Invesco S&P 500 Downside Hedged ETF
Quick Verdict
PHDG has a lower expense ratio. PHDG delivered stronger 1-year returns. PHDG offers more diversification with 494 holdings.
Side-by-Side Comparison
| Metric | FTCB | PHDG | Winner |
|---|---|---|---|
| Expense Ratio | 0.56% | 0.39% | |
| AUM | $2.5B | $61M | |
| Dividend Yield | 5.24% | 1.68% | |
| Holdings | 721 | 514 | |
| YTD Return | +0.12% | +13.02% | |
| 1Y Return | +2.43% | +18.49% | |
| 3Y Return (annualized) | - | +9.60% | |
| 5Y Return (annualized) | - | +4.75% | |
| Volatility (annualized) | 5.1% | 9.9% | |
| Max Drawdown | -5.0% | -23.6% | |
| Fund Family | First Trust Portfolios (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2023 | Dec 5, 2012 |
FTCB vs PHDG Performance
First Trust Core Investment Grade ETF (FTCB) is a ETF from First Trust Portfolios (US) and Invesco S&P 500 Downside Hedged ETF (PHDG) is a ETF from Invesco (US). Over the past year FTCB returned +2.43% while PHDG returned +18.49%. Year to date, FTCB is up 0.12% versus a gain of 13.02% for PHDG.
Risk: Volatility and Drawdowns
PHDG has been the more volatile fund, with annualized monthly volatility of 9.9% compared with 5.1% for FTCB. 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 -5.0% for FTCB and -23.6% for PHDG. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTCB charges 0.56% per year while PHDG charges 0.39%. On a $10,000 position that is $56 vs $39 annually, a gap of $17 per year that compounds over a long holding period. On income, FTCB currently yields 5.24% against 1.68% for PHDG.
Holdings Overlap
FTCB and PHDG share 0 holdings out of 825 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FTCB or PHDG?
FTCB has an expense ratio of 0.56% while PHDG charges 0.39%. PHDG is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, FTCB or PHDG?
Over the past year FTCB returned +2.43% vs +18.49% for PHDG, so PHDG leads on 1-year performance. Over the longest common window we track (3 years), FTCB annualized +5.77% vs +4.45% for PHDG. Past performance does not guarantee future results.
Which is riskier, FTCB or PHDG?
PHDG has been the more volatile fund at 9.9% annualized versus 5.1% for FTCB. Worst drawdown: FTCB -5.0% vs PHDG -23.6%.
Should I hold both FTCB and PHDG?
FTCB and PHDG have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTCB and PHDG?
FTCB and PHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 825 unique securities.
Which pays a higher dividend, FTCB or PHDG?
FTCB yields 5.24% while PHDG yields 1.68%, so FTCB currently pays the higher dividend yield.
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