DFAC vs. FAAR
DFAC (Dimensional U.S. Core Equity 2 ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - DFAC is a Large Cap Blend Equities fund actively managed by Dimensional, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 5 years, DFAC returned 12.14%/yr vs 7.89%/yr for FAAR. At a 0.05 correlation, their price movements are largely independent. DFAC charges 0.17%/yr vs 0.95%/yr for FAAR.
Performance
DFAC vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, DFAC achieves a 11.90% return, which is significantly lower than FAAR's 20.23% return.
DFAC
- 1D
- -0.02%
- 1M
- 1.38%
- YTD
- 11.90%
- 6M
- 10.98%
- 1Y
- 28.74%
- 3Y*
- 20.04%
- 5Y*
- 12.14%
- 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%
DFAC vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
DFAC Dimensional U.S. Core Equity 2 ETF | 11.90% | 15.66% | 19.61% | 21.96% | -14.93% | 9.55% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | -1.61% |
Correlation
The correlation between DFAC and FAAR is -0.08, 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 | -0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.02 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Jun 14, 2021 | 0.05 |
The correlation between DFAC and FAAR shifts across timeframes, from -0.08 (1 year) to 0.05 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
DFAC vs. FAAR — Risk / Return Rank
DFAC
FAAR
DFAC vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional U.S. Core Equity 2 ETF (DFAC) 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.
| DFAC | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.28 | ||
| Sortino ratioReturn per unit of downside risk | +0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.41 | 1.35 | +0.06 |
| Calmar ratioReturn relative to maximum drawdown | 3.40 | 4.75 | -1.35 |
| Martin ratioReturn relative to average drawdown | 14.87 | 14.70 | +0.17 |
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Drawdowns
DFAC vs. FAAR - Drawdown Comparison
The maximum DFAC drawdown since its inception was -23.12%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for DFAC and FAAR.
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Drawdown Indicators
| DFAC | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -23.12% | -18.03% | -5.09% |
Max Drawdown (1Y)Largest decline over 1 year | -8.49% | -5.68% | -2.81% |
Max Drawdown (3Y)Largest decline over 3 years | -20.02% | -11.54% | -8.48% |
Max Drawdown (5Y)Largest decline over 5 years | -23.12% | -18.03% | -5.09% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -0.79% | -5.43% | +4.64% |
Average DrawdownAverage peak-to-trough decline | -5.41% | -7.82% | +2.41% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.94% | 1.89% | +0.05% |
Volatility
DFAC vs. FAAR - Volatility Comparison
Dimensional U.S. Core Equity 2 ETF (DFAC) has a higher volatility of 4.35% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that DFAC'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
| DFAC | 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 | 9.65% | 9.68% | -0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.59% | 13.37% | -0.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.14% | 12.95% | +4.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.14% | 11.53% | +5.61% |
DFAC vs. FAAR - Expense Ratio Comparison
DFAC has a 0.17% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
DFAC vs. FAAR - Dividend Comparison
DFAC's dividend yield for the trailing twelve months is around 0.91%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
DFAC Dimensional U.S. Core Equity 2 ETF | 0.91% | 0.97% | 1.03% | 1.20% | 1.50% | 0.88% | 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
DFAC and FAAR have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
DFAC has higher volatility (4.35%) compared to FAAR (2.47%). In terms of maximum drawdown, DFAC dropped -23.12% vs FAAR's -18.03%.
On 5-year performance, DFAC leads with 12.14% vs 7.89% for FAAR. On fees, DFAC is cheaper at 0.17% 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.
Over the 5-year period, DFAC has performed better with a 12.14% return vs 7.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DFAC is cheaper with a 0.17% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.91% for DFAC.
DFAC is categorized as Large Cap Blend Equities, while FAAR is Commodities. They also come from different issuers: Dimensional and First Trust. Their fees differ too: 0.17% for DFAC and 0.95% for FAAR.
DFAC currently has the higher Sharpe Ratio (2.30 vs 2.02), 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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