BBHM vs. FAAR

Last updated Jun 24, 2026

BBHM (BBH Select Mid Cap ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - BBHM is a Mid Cap Growth Equities fund tracking the Actively Managed, while FAAR is a Commodities fund actively managed by First Trust. BBHM is passively managed, while FAAR is actively managed. At a correlation of -0.10, they often move in opposite directions. BBHM charges 0.81%/yr vs 0.95%/yr for FAAR.

Performance

BBHM vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BBH Select Mid Cap ETF (BBHM) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BBHM achieves a 3.11% return, which is significantly lower than FAAR's 19.14% return.

BBHM

• 1D: -0.85%
• 1M: 2.63%
• YTD: 3.11%
• 6M: 1.63%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAR

• 1D: -0.91%
• 1M: -5.21%
• YTD: 19.14%
• 6M: 18.06%
• 1Y: 28.33%
• 3Y*: 10.57%
• 5Y*: 7.72%
• 10Y*: 4.69%

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

BBHM vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025
BBHM BBH Select Mid Cap ETF	3.11%	0.98%
FAAR First Trust Alternative Absolute Return Strategy ETF	19.14%	-2.68%

Correlation

The correlation between BBHM and FAAR is -0.10, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (All Time) Calculated using the full available price history since Nov 17, 2025	-0.10

Return for Risk

BBHM vs. FAAR — Risk / Return Rank

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

BBHM

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

FAAR

FAAR Risk / Return Rank: 75
FAAR Sharpe Ratio Rank: 71
FAAR Sortino Ratio Rank: 74
FAAR Omega Ratio Rank: 65
FAAR Calmar Ratio Rank: 86
FAAR Martin Ratio Rank: 81

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.

BBHM vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BBH Select Mid Cap ETF (BBHM) and First Trust Alternative Absolute Return Strategy ETF (FAAR). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BBHM	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	—	2.15	—
Sortino ratio: Return per unit of downside risk	—	3.09	—
Omega ratio: Gain probability vs. loss probability	—	1.37	—
Calmar ratio: Return relative to maximum drawdown	—	4.52	—
Martin ratio: Return relative to average drawdown	—	15.18	—

Drawdowns

BBHM vs. FAAR - Drawdown Comparison

The maximum BBHM drawdown since its inception was -9.78%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for BBHM and FAAR.

Drawdown Indicators

	BBHM	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-9.78%	-18.03%	+8.25%
Max Drawdown (1Y) Largest decline over 1 year	—	-6.29%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-11.54%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-18.03%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-4.05%	-6.29%	+2.24%
Average Drawdown Average peak-to-trough decline	-2.97%	-7.82%	+4.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.87%	—

Volatility

Volatility by Period

	BBHM	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.55%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.68%	—
Volatility (1Y) Calculated over the trailing 1-year period	18.20%	13.38%	+4.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.20%	12.96%	+5.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.20%	11.54%	+6.66%

BBHM vs. FAAR - Expense Ratio Comparison

BBHM has a 0.81% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

BBHM vs. FAAR - Dividend Comparison

BBHM has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.66%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
BBHM BBH Select Mid Cap ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FAAR First Trust Alternative Absolute Return Strategy ETF	9.66%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%

Frequently Asked Questions

Can I hold both BBHM and FAAR in my portfolio?

BBHM and FAAR have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, BBHM or FAAR?

On fees, BBHM is cheaper at 0.81% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, BBHM or FAAR?

BBHM is cheaper with a 0.81% expense ratio, compared with 0.95% for FAAR.

Which ETF pays a higher dividend yield, BBHM or FAAR?

FAAR has the higher dividend yield at 9.66%, compared with 0.00% for BBHM.

What is the main difference between BBHM and FAAR?

BBHM is categorized as Mid Cap Growth Equities, while FAAR is Commodities. They also come from different issuers: BBH and First Trust. Their fees differ too: 0.81% for BBHM and 0.95% for FAAR.