FTGS vs IG

Quick Verdict

IG has a lower expense ratio. FTGS delivered stronger 1-year returns. IG offers more diversification with 145 holdings.

Lower Fees: IGHigher Returns: FTGSMore Diversified: IG

Side-by-Side Comparison

MetricFTGSIGWinner
Expense Ratio0.60%0.19%
AUM$1.3B$198M
Dividend Yield0.09%5.07%
Holdings51248
YTD Return+12.49%-1.54%
1Y Return+14.75%+0.84%
3Y Return (annualized)+18.25%+4.56%
5Y Return (annualized)--0.69%
Volatility (annualized)14.6%8.0%
Max Drawdown-20.0%-23.8%
Fund FamilyFirst Trust Portfolios (US)Principal Funds
CategoryEquityFixed Income
InceptionOct 25, 2022Apr 18, 2018

FTGS vs IG Performance

First Trust Growth Strength ETF (FTGS) is a ETF from First Trust Portfolios (US) and Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds. Over the past year FTGS returned +14.75% while IG returned +0.84%. Year to date, FTGS is up 12.49% versus a loss of 1.54% for IG.

Over three years, FTGS compounded at +18.25% per year against +4.56% for IG. Across the full 4-year window we track, FTGS has the edge at +19.84% annualized vs +0.59%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FTGS has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 8.0% for IG. 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 -20.0% for FTGS and -23.8% for IG. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FTGS charges 0.60% per year while IG charges 0.19%. On a $10,000 position that is $60 vs $19 annually, a gap of $41 per year that compounds over a long holding period. On income, FTGS currently yields 0.09% against 5.07% for IG.

Holdings Overlap

0.0%overlap

FTGS and IG share 0 holdings out of 195 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, FTGS or IG?

FTGS has an expense ratio of 0.60% while IG charges 0.19%. IG is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, FTGS or IG?

Over the past year FTGS returned +14.75% vs +0.84% for IG, so FTGS leads on 1-year performance. Over the longest common window we track (4 years), FTGS annualized +19.84% vs +0.59% for IG. Past performance does not guarantee future results.

Which is riskier, FTGS or IG?

FTGS has been the more volatile fund at 14.6% annualized versus 8.0% for IG. Worst drawdown: FTGS -20.0% vs IG -23.8%.

Should I hold both FTGS and IG?

FTGS and IG have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FTGS and IG?

FTGS and IG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 195 unique securities.

Which pays a higher dividend, FTGS or IG?

FTGS yields 0.09% while IG yields 5.07%, so IG currently pays the higher dividend yield.

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