BKHY vs. FAAR
BKHY (BNY Mellon High Yield Beta ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - BKHY is a High Yield Bonds fund tracking the Bloomberg US Corporate High Yield Index, while FAAR is a Commodities fund actively managed by First Trust. BKHY is passively managed, while FAAR is actively managed. Over the past 5 years, BKHY returned 4.07%/yr vs 7.89%/yr for FAAR. At a 0.02 correlation, their price movements are largely independent. BKHY charges 0.22%/yr vs 0.95%/yr for FAAR.
Performance
BKHY vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, BKHY achieves a 1.95% return, which is significantly lower than FAAR's 20.23% return.
BKHY
- 1D
- -0.02%
- 1M
- 0.57%
- YTD
- 1.95%
- 6M
- 2.31%
- 1Y
- 6.98%
- 3Y*
- 9.06%
- 5Y*
- 4.07%
- 10Y*
- —
FAAR
- 1D
- -0.05%
- 1M
- -4.34%
- YTD
- 20.23%
- 6M
- 19.92%
- 1Y
- 26.86%
- 3Y*
- 10.91%
- 5Y*
- 7.89%
- 10Y*
- 4.79%
BKHY vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
BKHY BNY Mellon High Yield Beta ETF | 1.95% | 8.48% | 8.37% | 12.40% | -10.97% | 4.75% | 17.83% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 11.10% |
Correlation
The correlation between BKHY and FAAR is -0.17, 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 (1Y) Calculated over the trailing 1-year period | -0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Apr 24, 2020 | 0.02 |
The correlation between BKHY and FAAR shifts across timeframes, from -0.17 (1 year) to 0.02 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
BKHY vs. FAAR — Risk / Return Rank
BKHY
FAAR
BKHY vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BNY Mellon High Yield Beta ETF (BKHY) 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.
| BKHY | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.14 | ||
| Sortino ratioReturn per unit of downside risk | -0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.35 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 2.77 | 4.75 | -1.97 |
| Martin ratioReturn relative to average drawdown | 12.66 | 14.70 | -2.04 |
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Drawdowns
BKHY vs. FAAR - Drawdown Comparison
The maximum BKHY drawdown since its inception was -15.89%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for BKHY and FAAR.
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Drawdown Indicators
| BKHY | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.89% | -18.03% | +2.14% |
Max Drawdown (1Y)Largest decline over 1 year | -2.53% | -5.68% | +3.15% |
Max Drawdown (3Y)Largest decline over 3 years | -4.87% | -11.54% | +6.67% |
Max Drawdown (5Y)Largest decline over 5 years | -15.89% | -18.03% | +2.14% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -0.25% | -5.43% | +5.18% |
Average DrawdownAverage peak-to-trough decline | -2.95% | -7.82% | +4.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.55% | 1.89% | -1.34% |
Volatility
BKHY vs. FAAR - Volatility Comparison
The current volatility for BNY Mellon High Yield Beta ETF (BKHY) is 0.92%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.47%. This indicates that BKHY experiences smaller price fluctuations and is considered to be less risky than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BKHY | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.92% | 2.47% | -1.55% |
Volatility (6M)Calculated over the trailing 6-month period | 3.03% | 9.68% | -6.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.74% | 13.37% | -9.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.59% | 12.95% | -5.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.34% | 11.53% | -4.19% |
BKHY vs. FAAR - Expense Ratio Comparison
BKHY has a 0.22% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
BKHY vs. FAAR - Dividend Comparison
BKHY's dividend yield for the trailing twelve months is around 7.45%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
BKHY BNY Mellon High Yield Beta ETF | 7.45% | 7.33% | 7.34% | 8.67% | 6.59% | 6.78% | 4.65% | 0.00% | 0.00% | 0.00% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.57% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
Frequently Asked Questions
BKHY and FAAR have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.47%) compared to BKHY (0.92%). In terms of maximum drawdown, BKHY dropped -15.89% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.89% vs 4.07% for BKHY. On fees, BKHY is cheaper at 0.22% per year. On volatility, BKHY has been the lower-risk option at 0.92%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FAAR has performed better with a 7.89% return vs 4.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BKHY is cheaper with a 0.22% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 7.45% for BKHY.
BKHY is categorized as High Yield Bonds, while FAAR is Commodities. They also come from different issuers: BNY Mellon and First Trust. Their fees differ too: 0.22% for BKHY and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 1.88), 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.
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