BCI vs. FAAR
Compare and contrast key facts about abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) and First Trust Alternative Absolute Return Strategy ETF (FAAR).
BCI and FAAR are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BCI is an actively managed fund by Abrdn Plc. It was launched on Mar 30, 2017. FAAR is an actively managed fund by First Trust. It was launched on May 18, 2016.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: BCI or FAAR.
Key characteristics
| BCI | FAAR | |
|---|---|---|
| YTD Return | 4.13% | 4.25% |
| 1Y Return | 4.76% | 1.11% |
| 3Y Return (Ann) | 5.87% | 3.30% |
| 5Y Return (Ann) | 6.64% | 5.04% |
| Sharpe Ratio | 0.31 | 0.12 |
| Daily Std Dev | 12.50% | 8.32% |
| Max Drawdown | -32.69% | -16.65% |
| Current Drawdown | -20.62% | -12.51% |
Correlation
The correlation between BCI and FAAR is 0.39, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
BCI vs. FAAR - Performance Comparison
The year-to-date returns for both investments are quite close, with BCI having a 4.13% return and FAAR slightly higher at 4.25%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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BCI vs. FAAR - Expense Ratio Comparison
BCI has a 0.25% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Risk-Adjusted Performance
BCI vs. FAAR - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) 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.
Dividends
BCI vs. FAAR - Dividend Comparison
BCI's dividend yield for the trailing twelve months is around 3.77%, more than FAAR's 3.25% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
BCI abrdn Bloomberg All Commodity Strategy K-1 Free ETF | 3.77% | 3.93% | 19.98% | 19.43% | 0.68% | 1.47% | 1.13% | 5.02% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 3.25% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
Drawdowns
BCI vs. FAAR - Drawdown Comparison
The maximum BCI drawdown since its inception was -32.69%, which is greater than FAAR's maximum drawdown of -16.65%. Use the drawdown chart below to compare losses from any high point for BCI and FAAR. For additional features, visit the drawdowns tool.
Volatility
BCI vs. FAAR - Volatility Comparison
abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) has a higher volatility of 2.69% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.56%. This indicates that BCI's price experiences larger fluctuations and is considered to be riskier than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.