EDGX vs. FAAR

Last updated Jun 4, 2026

EDGX (Global X U.S. 500 Income Edge ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - EDGX is a Derivative Income fund tracking the Solactive GBS United States 500 Index, while FAAR is a Commodities fund actively managed by First Trust. EDGX is passively managed, while FAAR is actively managed. At a correlation of -0.50, they often move in opposite directions.

Performance

EDGX vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X U.S. 500 Income Edge ETF (EDGX) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

EDGX

• 1D: -0.49%
• 1M: 4.73%
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAR

• 1D: 0.01%
• 1M: -0.79%
• YTD: 25.73%
• 6M: 23.17%
• 1Y: 40.73%
• 3Y*: 11.79%
• 5Y*: 8.07%
• 10Y*: 5.17%

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

EDGX vs. FAAR - Yearly Performance Comparison

	2026 (YTD)
EDGX Global X U.S. 500 Income Edge ETF	10.16%
FAAR First Trust Alternative Absolute Return Strategy ETF	14.72%

Correlation

The correlation between EDGX and FAAR is -0.50, 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 (All Time) Calculated using the full available price history since Feb 19, 2026	-0.50

Return for Risk

EDGX vs. FAAR — Risk / Return Rank

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

FAAR

FAAR Risk / Return Rank: 90
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 84
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 92

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.

EDGX vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X U.S. 500 Income Edge ETF (EDGX) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	EDGX	FAAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	3.04	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.62	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.45	—
Sharpe Ratio (All Time) Calculated using the full available price history	3.05	0.45	+2.60

Drawdowns

EDGX vs. FAAR - Drawdown Comparison

The maximum EDGX drawdown since its inception was -7.56%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for EDGX and FAAR.

Drawdown Indicators

	EDGX	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-7.56%	-18.03%	+10.47%
Max Drawdown (1Y) Largest decline over 1 year	—	-4.85%	—
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	-0.49%	-1.11%	+0.62%
Average Drawdown Average peak-to-trough decline	-1.50%	-7.85%	+6.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.73%	—

Volatility

Volatility by Period

	EDGX	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.44%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.72%	—
Volatility (1Y) Calculated over the trailing 1-year period	13.10%	13.48%	-0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.10%	13.02%	+0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.10%	11.51%	+1.59%

Dividends

EDGX vs. FAAR - Dividend Comparison

EDGX's dividend yield for the trailing twelve months is around 2.43%, less than FAAR's 9.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDGX Global X U.S. 500 Income Edge ETF	2.43%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FAAR First Trust Alternative Absolute Return Strategy ETF	9.15%	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 EDGX and FAAR in my portfolio?

EDGX and FAAR have a correlation of -0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

FAAR has the higher dividend yield at 9.15%, compared with 2.43% for EDGX.

What is the main difference between EDGX and FAAR?

EDGX is categorized as Derivative Income, while FAAR is Commodities. They also come from different issuers: Global X and First Trust.