DAX vs. FAAR
DAX (Global X DAX Germany ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - DAX is a Europe Equities fund tracking the DAX Index, while FAAR is a Commodities fund actively managed by First Trust. DAX is passively managed, while FAAR is actively managed. Over the past 10 years, DAX returned 9.68%/yr vs 4.69%/yr for FAAR. At a 0.07 correlation, their price movements are largely independent. DAX charges 0.20%/yr vs 0.95%/yr for FAAR.
Performance
DAX vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, DAX achieves a -1.81% return, which is significantly lower than FAAR's 19.14% return. Over the past 10 years, DAX has outperformed FAAR with an annualized return of 9.68%, while FAAR has yielded a comparatively lower 4.69% annualized return.
DAX
- 1D
- -1.06%
- 1M
- -1.26%
- YTD
- -1.81%
- 6M
- -1.55%
- 1Y
- 3.85%
- 3Y*
- 17.16%
- 5Y*
- 8.06%
- 10Y*
- 9.68%
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%
DAX vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
DAX Global X DAX Germany ETF | -1.81% | 39.00% | 10.55% | 23.62% | -18.47% | 7.73% | 12.27% | 22.11% | -22.92% | 28.23% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between DAX and FAAR is -0.11, 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 | -0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.02 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.03 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.07 |
The correlation between DAX and FAAR shifts across timeframes, from -0.11 (1 year) to 0.07 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
DAX vs. FAAR — Risk / Return Rank
DAX
FAAR
DAX vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Global X DAX Germany ETF (DAX) 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.
| DAX | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.94 | ||
| Sortino ratioReturn per unit of downside risk | -2.66 | ||
| Omega ratioGain probability vs. loss probability | 1.05 | 1.37 | -0.32 |
| Calmar ratioReturn relative to maximum drawdown | 0.26 | 4.52 | -4.26 |
| Martin ratioReturn relative to average drawdown | 0.80 | 15.18 | -14.38 |
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Drawdowns
DAX vs. FAAR - Drawdown Comparison
The maximum DAX drawdown since its inception was -45.58%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for DAX and FAAR.
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Drawdown Indicators
| DAX | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -45.58% | -18.03% | -27.55% |
Max Drawdown (1Y)Largest decline over 1 year | -14.82% | -6.29% | -8.53% |
Max Drawdown (3Y)Largest decline over 3 years | -16.03% | -11.54% | -4.49% |
Max Drawdown (5Y)Largest decline over 5 years | -38.92% | -18.03% | -20.89% |
Max Drawdown (10Y)Largest decline over 10 years | -45.58% | -18.03% | -27.55% |
Current DrawdownCurrent decline from peak | -5.73% | -6.29% | +0.56% |
Average DrawdownAverage peak-to-trough decline | -10.48% | -7.82% | -2.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.82% | 1.87% | +2.95% |
Volatility
DAX vs. FAAR - Volatility Comparison
Global X DAX Germany ETF (DAX) has a higher volatility of 5.25% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that DAX'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.
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Volatility by Period
| DAX | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.25% | 2.55% | +2.70% |
Volatility (6M)Calculated over the trailing 6-month period | 14.86% | 9.68% | +5.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.98% | 13.38% | +4.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.43% | 12.96% | +7.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.98% | 11.54% | +9.44% |
DAX vs. FAAR - Expense Ratio Comparison
DAX has a 0.20% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
DAX vs. FAAR - Dividend Comparison
DAX's dividend yield for the trailing twelve months is around 1.50%, less than FAAR's 9.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DAX Global X DAX Germany ETF | 1.50% | 1.47% | 2.24% | 2.48% | 2.80% | 2.65% | 2.25% | 2.47% | 3.33% | 1.73% | 1.78% | 1.41% |
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% | 0.00% | 0.00% |
Frequently Asked Questions
DAX and FAAR have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DAX has higher volatility (5.25%) compared to FAAR (2.55%). In terms of maximum drawdown, DAX dropped -45.58% vs FAAR's -18.03%.
On 10-year performance, DAX leads with 9.68% vs 4.69% for FAAR. On fees, DAX is cheaper at 0.20% per year. On volatility, FAAR has been the lower-risk option at 2.55%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, DAX has performed better with a 9.68% return vs 4.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DAX is cheaper with a 0.20% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 1.50% for DAX.
DAX is categorized as Europe Equities, while FAAR is Commodities. They also come from different issuers: Global X and First Trust. Their fees differ too: 0.20% for DAX and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 0.22), 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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