BGR vs. FAAR

Last updated Jun 4, 2026

BGR (BlackRock Energy and Resources Trust) is a stock, while FAAR (First Trust Alternative Absolute Return Strategy ETF) is Commodities fund actively managed by First Trust. Over the past 10 years, BGR returned 8.56%/yr vs 5.17%/yr for FAAR. At a 0.30 correlation, their price movements are largely independent.

Performance

BGR vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock Energy and Resources Trust (BGR) 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, BGR achieves a 22.44% return, which is significantly lower than FAAR's 25.73% return. Over the past 10 years, BGR has outperformed FAAR with an annualized return of 8.56%, while FAAR has yielded a comparatively lower 5.17% annualized return.

BGR

• 1D: 0.63%
• 1M: -3.95%
• YTD: 22.44%
• 6M: 19.36%
• 1Y: 37.77%
• 3Y*: 18.67%
• 5Y*: 17.50%
• 10Y*: 8.56%

FAAR

• 1D: 0.01%
• 1M: -0.79%
• YTD: 25.73%
• 6M: 23.17%
• 1Y: 40.73%
• 3Y*: 11.79%
• 5Y*: 8.07%
• 10Y*: 5.17%

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

BGR vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BGR BlackRock Energy and Resources Trust	22.44%	17.34%	8.07%	5.73%	38.90%	40.25%	-34.78%	23.32%	-21.21%	5.18%
FAAR First Trust Alternative Absolute Return Strategy ETF	25.73%	8.07%	5.97%	-5.63%	10.15%	12.34%	8.60%	-1.28%	-9.17%	5.00%

Correlation

The correlation between BGR and FAAR is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since May 24, 2016	0.30

The correlation between BGR and FAAR shifts across timeframes, from 0.30 (all time) to 0.48 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

BGR vs. FAAR — Risk / Return Rank

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

BGR

BGR Risk / Return Rank: 86
BGR Sharpe Ratio Rank: 87
BGR Sortino Ratio Rank: 80
BGR Omega Ratio Rank: 86
BGR Calmar Ratio Rank: 87
BGR Martin Ratio Rank: 89

FAAR

FAAR Risk / Return Rank: 90
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 84
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 92

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.

BGR vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock Energy and Resources Trust (BGR) 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.

	BGR	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	1.95	3.04	-1.09
Sortino ratio: Return per unit of downside risk	2.35	4.23	-1.88
Omega ratio: Gain probability vs. loss probability	1.37	1.52	-0.15
Calmar ratio: Return relative to maximum drawdown	3.88	8.44	-4.57
Martin ratio: Return relative to average drawdown	11.91	23.64	-11.73
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BGR vs. FAAR - Sharpe Ratio Comparison

The current BGR Sharpe Ratio is 1.95, which is lower than the FAAR Sharpe Ratio of 3.04. The chart below compares the historical Sharpe Ratios of BGR and FAAR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BGR	FAAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.95	3.04	-1.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	0.62	+0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	0.45	-0.13
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.45	-0.24

Drawdowns

BGR vs. FAAR - Drawdown Comparison

The maximum BGR drawdown since its inception was -72.74%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for BGR and FAAR.

Drawdown Indicators

	BGR	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-72.74%	-18.03%	-54.71%
Max Drawdown (1Y) Largest decline over 1 year	-9.79%	-4.85%	-4.94%
Max Drawdown (3Y) Largest decline over 3 years	-18.25%	-11.54%	-6.71%
Max Drawdown (5Y) Largest decline over 5 years	-24.81%	-18.03%	-6.78%
Max Drawdown (10Y) Largest decline over 10 years	-66.16%	-18.03%	-48.13%
Current Drawdown Current decline from peak	-6.47%	-1.11%	-5.36%
Average Drawdown Average peak-to-trough decline	-20.25%	-7.85%	-12.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.18%	1.73%	+1.45%

Volatility

BGR vs. FAAR - Volatility Comparison

BlackRock Energy and Resources Trust (BGR) has a higher volatility of 7.41% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.44%. This indicates that BGR'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.

Volatility by Period

	BGR	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.41%	2.44%	+4.97%
Volatility (6M) Calculated over the trailing 6-month period	17.41%	9.72%	+7.69%
Volatility (1Y) Calculated over the trailing 1-year period	19.50%	13.48%	+6.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.87%	13.02%	+9.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.85%	11.51%	+15.34%

Dividends

BGR vs. FAAR - Dividend Comparison

BGR's dividend yield for the trailing twelve months is around 7.27%, less than FAAR's 9.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BGR BlackRock Energy and Resources Trust	7.27%	8.62%	6.66%	6.22%	4.62%	4.75%	9.26%	7.84%	8.91%	6.57%	6.90%	11.93%
FAAR First Trust Alternative Absolute Return Strategy ETF	9.15%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%	0.00%	0.00%

Frequently Asked Questions

Can I hold both BGR and FAAR in my portfolio?

BGR and FAAR have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BGR or FAAR?

BGR has higher volatility (7.41%) compared to FAAR (2.44%). In terms of maximum drawdown, BGR dropped -72.74% vs FAAR's -18.03%.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (3.04 vs 1.95), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.