DFII vs. CAOS

Last updated Jul 14, 2026

DFII (FT Vest Bitcoin Strategy & Target Income ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - DFII is a Cryptocurrency fund actively managed by First Trust, while CAOS is a Options Trading fund actively managed by Alpha Architect. Both are actively managed. Over the past year, DFII returned -45.77% vs 1.84% for CAOS. At a correlation of -0.25, they often move in opposite directions. DFII charges 0.85%/yr vs 0.63%/yr for CAOS.

Performance

DFII vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Vest Bitcoin Strategy & Target Income ETF (DFII) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFII achieves a -28.51% return, which is significantly lower than CAOS's 0.73% return.

DFII

• 1D: -2.55%
• 1M: -2.03%
• 6M: -31.22%
• YTD: -28.51%
• 1Y: -45.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CAOS

• 1D: 0.03%
• 1M: -0.01%
• 6M: 0.27%
• YTD: 0.73%
• 1Y: 1.84%
• 3Y*: 3.59%
• 5Y*: —
• 10Y*: —

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

DFII vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025
DFII FT Vest Bitcoin Strategy & Target Income ETF	-28.51%	6.01%
CAOS Alpha Architect Tail Risk ETF	0.73%	2.09%

Correlation

The correlation between DFII and CAOS is -0.22, 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	-0.22
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025	-0.25

Return for Risk

DFII vs. CAOS — Risk / Return Rank

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

DFII

DFII Risk / Return Rank: 1
DFII Sharpe Ratio Rank: 1
DFII Sortino Ratio Rank: 1
DFII Omega Ratio Rank: 1
DFII Calmar Ratio Rank: 1
DFII Martin Ratio Rank: 1

CAOS

CAOS Risk / Return Rank: 48
CAOS Sharpe Ratio Rank: 42
CAOS Sortino Ratio Rank: 46
CAOS Omega Ratio Rank: 47
CAOS Calmar Ratio Rank: 61
CAOS Martin Ratio Rank: 43

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.

DFII vs. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Vest Bitcoin Strategy & Target Income ETF (DFII) and Alpha Architect Tail Risk ETF (CAOS). 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.

	DFII	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	-1.09	1.18	-2.28
Sortino ratio: Return per unit of downside risk	-1.65	1.88	-3.53
Omega ratio: Gain probability vs. loss probability	0.81	1.24	-0.43
Calmar ratio: Return relative to maximum drawdown	-0.90	2.43	-3.33
Martin ratio: Return relative to average drawdown	-1.47	5.52	-6.99

DFII vs. CAOS - Sharpe Ratio Comparison

The current DFII Sharpe Ratio is -1.09, which is lower than the CAOS Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of DFII and CAOS, 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

DFII vs. CAOS - Drawdown Comparison

The maximum DFII drawdown since its inception was -51.04%, which is greater than CAOS's maximum drawdown of -3.89%. Use the drawdown chart below to compare losses from any high point for DFII and CAOS.

Drawdown Indicators

	DFII	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-51.04%	-3.89%	-47.15%
Max Drawdown (1Y) Largest decline over 1 year	-51.04%	-0.76%	-50.28%
Max Drawdown (3Y) Largest decline over 3 years	—	-3.60%	—
Current Drawdown Current decline from peak	-48.62%	-1.16%	-47.46%
Average Drawdown Average peak-to-trough decline	-21.35%	-0.92%	-20.43%
Ulcer Index Depth and duration of drawdowns from previous peaks	31.20%	0.33%	+30.87%

Volatility

DFII vs. CAOS - Volatility Comparison

FT Vest Bitcoin Strategy & Target Income ETF (DFII) has a higher volatility of 10.27% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.49%. This indicates that DFII's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFII	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.27%	0.49%	+9.78%
Volatility (6M) Calculated over the trailing 6-month period	33.53%	1.12%	+32.41%
Volatility (1Y) Calculated over the trailing 1-year period	42.12%	1.56%	+40.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	40.88%	4.21%	+36.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.88%	4.21%	+36.67%

DFII vs. CAOS - Expense Ratio Comparison

DFII has a 0.85% expense ratio, which is higher than CAOS's 0.63% expense ratio.

Dividends

DFII vs. CAOS - Dividend Comparison

DFII's dividend yield for the trailing twelve months is around 28.10%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%
DFII FT Vest Bitcoin Strategy & Target Income ETF	28.10%	15.51%

Frequently Asked Questions

Can I hold both DFII and CAOS in my portfolio?

DFII and CAOS have a correlation of -0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DFII or CAOS?

DFII has higher volatility (10.27%) compared to CAOS (0.49%). In terms of maximum drawdown, DFII dropped -51.04% vs CAOS's -3.89%.

Which ETF is better, DFII or CAOS?

On 1-year performance, CAOS leads with 1.84% vs -45.77% for DFII. On fees, CAOS is cheaper at 0.63% per year. On volatility, CAOS has been the lower-risk option at 0.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFII or CAOS?

Over the 1-year period, CAOS has performed better with a 1.84% return vs -45.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFII or CAOS?

CAOS is cheaper with a 0.63% expense ratio, compared with 0.85% for DFII.

Which ETF pays a higher dividend yield, DFII or CAOS?

DFII has the higher dividend yield at 28.10%, compared with 0.00% for CAOS.

What is the main difference between DFII and CAOS?

DFII is categorized as Cryptocurrency, while CAOS is Options Trading. They also come from different issuers: First Trust and Alpha Architect. Their fees differ too: 0.85% for DFII and 0.63% for CAOS.

Which has better risk-adjusted returns?

CAOS currently has the higher Sharpe Ratio (1.18 vs -1.09), 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.