DCMT vs. FAAR

Last updated Jun 24, 2026

DCMT (DoubleLine Commodity Strategy ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both Commodities funds. Both are actively managed. Over the past year, DCMT returned 22.10% vs 28.33% for FAAR. A 0.68 correlation means they provide meaningful diversification when combined. DCMT charges 0.66%/yr vs 0.95%/yr for FAAR.

Performance

DCMT vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in DoubleLine Commodity Strategy ETF (DCMT) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with DCMT having a 19.96% return and FAAR slightly lower at 19.14%.

DCMT

• 1D: -1.04%
• 1M: -11.03%
• YTD: 19.96%
• 6M: 18.79%
• 1Y: 22.10%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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%

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

DCMT vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DCMT DoubleLine Commodity Strategy ETF	19.96%	6.04%	3.65%
FAAR First Trust Alternative Absolute Return Strategy ETF	19.14%	8.07%	4.10%

Correlation

The correlation between DCMT and FAAR is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.79
Correlation (All Time) Calculated using the full available price history since Feb 1, 2024	0.68

The correlation between DCMT and FAAR shifts across timeframes, from 0.68 (all time) to 0.79 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

DCMT vs. FAAR — Risk / Return Rank

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

DCMT

DCMT Risk / Return Rank: 37
DCMT Sharpe Ratio Rank: 36
DCMT Sortino Ratio Rank: 35
DCMT Omega Ratio Rank: 34
DCMT Calmar Ratio Rank: 34
DCMT Martin Ratio Rank: 47

FAAR

FAAR Risk / Return Rank: 75
FAAR Sharpe Ratio Rank: 71
FAAR Sortino Ratio Rank: 74
FAAR Omega Ratio Rank: 65
FAAR Calmar Ratio Rank: 86
FAAR Martin Ratio Rank: 81

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.

DCMT vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for DoubleLine Commodity Strategy ETF (DCMT) 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.

	DCMT	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	1.21	2.15	-0.94
Sortino ratio: Return per unit of downside risk	1.72	3.09	-1.38
Omega ratio: Gain probability vs. loss probability	1.22	1.37	-0.15
Calmar ratio: Return relative to maximum drawdown	1.60	4.52	-2.93
Martin ratio: Return relative to average drawdown	7.23	15.18	-7.94

DCMT vs. FAAR - Sharpe Ratio Comparison

The current DCMT Sharpe Ratio is 1.21, which is lower than the FAAR Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of DCMT 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

DCMT vs. FAAR - Drawdown Comparison

The maximum DCMT drawdown since its inception was -13.89%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for DCMT and FAAR.

Drawdown Indicators

	DCMT	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-13.89%	-18.03%	+4.14%
Max Drawdown (1Y) Largest decline over 1 year	-13.89%	-6.29%	-7.60%
Max Drawdown (3Y) Largest decline over 3 years	—	-11.54%	—
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	-13.89%	-6.29%	-7.60%
Average Drawdown Average peak-to-trough decline	-3.29%	-7.82%	+4.53%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.10%	1.87%	+1.23%

Volatility

DCMT vs. FAAR - Volatility Comparison

DoubleLine Commodity Strategy ETF (DCMT) has a higher volatility of 4.62% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that DCMT'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

	DCMT	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.62%	2.55%	+2.07%
Volatility (6M) Calculated over the trailing 6-month period	16.30%	9.68%	+6.62%
Volatility (1Y) Calculated over the trailing 1-year period	18.53%	13.38%	+5.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.85%	12.96%	+2.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.85%	11.54%	+4.31%

DCMT vs. FAAR - Expense Ratio Comparison

DCMT has a 0.66% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

DCMT vs. FAAR - Dividend Comparison

DCMT's dividend yield for the trailing twelve months is around 3.06%, less than FAAR's 9.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
DCMT DoubleLine Commodity Strategy ETF	3.06%	3.67%	1.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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%

Frequently Asked Questions

Can I hold both DCMT and FAAR in my portfolio?

DCMT and FAAR have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DCMT or FAAR?

DCMT has higher volatility (4.62%) compared to FAAR (2.55%). In terms of maximum drawdown, DCMT dropped -13.89% vs FAAR's -18.03%.

Which ETF is better, DCMT or FAAR?

On 1-year performance, FAAR leads with 28.33% vs 22.10% for DCMT. On fees, DCMT is cheaper at 0.66% 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.

Which ETF has performed better, DCMT or FAAR?

Over the 1-year period, FAAR has performed better with a 28.33% return vs 22.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DCMT or FAAR?

DCMT is cheaper with a 0.66% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.66%, compared with 3.06% for DCMT.

What is the main difference between DCMT and FAAR?

They also come from different issuers: DoubleLine and First Trust. Their fees differ too: 0.66% for DCMT and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (2.15 vs 1.21), 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.