BYRE vs. FAAR

Last updated Jun 23, 2026

BYRE (Principal Real Estate Active Opportunities ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - BYRE is a REIT fund actively managed by Principal, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, BYRE returned 10.59%/yr vs 10.91%/yr for FAAR. At a correlation of -0.03, they often move in opposite directions. BYRE charges 0.65%/yr vs 0.95%/yr for FAAR.

Performance

BYRE vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Real Estate Active Opportunities ETF (BYRE) 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, BYRE achieves a 11.67% return, which is significantly lower than FAAR's 20.23% return.

BYRE

• 1D: 0.81%
• 1M: -1.35%
• YTD: 11.67%
• 6M: 12.32%
• 1Y: 9.46%
• 3Y*: 10.59%
• 5Y*: —
• 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%

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

BYRE vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
BYRE Principal Real Estate Active Opportunities ETF	11.67%	2.35%	4.18%	10.82%	-9.22%
FAAR First Trust Alternative Absolute Return Strategy ETF	20.23%	8.07%	5.97%	-5.63%	-6.53%

Correlation

The correlation between BYRE and FAAR is -0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.07
Correlation (3Y) Calculated over the trailing 3-year period	-0.04
Correlation (All Time) Calculated using the full available price history since May 19, 2022	-0.03

Return for Risk

BYRE vs. FAAR — Risk / Return Rank

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

BYRE

BYRE Risk / Return Rank: 22
BYRE Sharpe Ratio Rank: 22
BYRE Sortino Ratio Rank: 20
BYRE Omega Ratio Rank: 20
BYRE Calmar Ratio Rank: 26
BYRE Martin Ratio Rank: 24

FAAR

FAAR Risk / Return Rank: 70
FAAR Sharpe Ratio Rank: 64
FAAR Sortino Ratio Rank: 65
FAAR Omega Ratio Rank: 58
FAAR Calmar Ratio Rank: 87
FAAR Martin Ratio Rank: 78

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.

BYRE vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Real Estate Active Opportunities ETF (BYRE) 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.

	BYRE	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	0.74	2.02	-1.29
Sortino ratio: Return per unit of downside risk	1.06	2.89	-1.83
Omega ratio: Gain probability vs. loss probability	1.13	1.35	-0.21
Calmar ratio: Return relative to maximum drawdown	1.22	4.75	-3.52
Martin ratio: Return relative to average drawdown	3.06	14.70	-11.63

BYRE vs. FAAR - Sharpe Ratio Comparison

The current BYRE Sharpe Ratio is 0.74, which is lower than the FAAR Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of BYRE 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.

Drawdowns

BYRE vs. FAAR - Drawdown Comparison

The maximum BYRE drawdown since its inception was -25.70%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for BYRE and FAAR.

Drawdown Indicators

	BYRE	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-25.70%	-18.03%	-7.67%
Max Drawdown (1Y) Largest decline over 1 year	-7.76%	-5.68%	-2.08%
Max Drawdown (3Y) Largest decline over 3 years	-15.20%	-11.54%	-3.66%
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	-1.91%	-5.43%	+3.52%
Average Drawdown Average peak-to-trough decline	-9.48%	-7.82%	-1.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	1.89%	+1.21%

Volatility

BYRE vs. FAAR - Volatility Comparison

Principal Real Estate Active Opportunities ETF (BYRE) has a higher volatility of 4.35% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that BYRE'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

	BYRE	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.35%	2.47%	+1.88%
Volatility (6M) Calculated over the trailing 6-month period	9.63%	9.68%	-0.05%
Volatility (1Y) Calculated over the trailing 1-year period	12.93%	13.37%	-0.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.08%	12.95%	+5.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.08%	11.53%	+6.55%

BYRE vs. FAAR - Expense Ratio Comparison

BYRE has a 0.65% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

BYRE vs. FAAR - Dividend Comparison

BYRE's dividend yield for the trailing twelve months is around 2.46%, less than FAAR's 9.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
BYRE Principal Real Estate Active Opportunities ETF	2.46%	2.71%	2.31%	2.63%	1.86%	0.00%	0.00%	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

Can I hold both BYRE and FAAR in my portfolio?

BYRE and FAAR have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BYRE or FAAR?

BYRE has higher volatility (4.35%) compared to FAAR (2.47%). In terms of maximum drawdown, BYRE dropped -25.70% vs FAAR's -18.03%.

Which ETF is better, BYRE or FAAR?

On 3-year performance, FAAR leads with 10.91% vs 10.59% for BYRE. On fees, BYRE is cheaper at 0.65% per year. On volatility, FAAR has been the lower-risk option at 2.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BYRE or FAAR?

Over the 3-year period, FAAR has performed better with a 10.91% return vs 10.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BYRE or FAAR?

BYRE is cheaper with a 0.65% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.57%, compared with 2.46% for BYRE.

What is the main difference between BYRE and FAAR?

BYRE is categorized as REIT, while FAAR is Commodities. They also come from different issuers: Principal and First Trust. Their fees differ too: 0.65% for BYRE and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (2.02 vs 0.74), 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.