FAAR vs. BSMV
FAAR (First Trust Alternative Absolute Return Strategy ETF) and BSMV (Invesco BulletShares 2031 Municipal Bond ETF) are both exchange-traded funds - FAAR is a Commodities fund actively managed by First Trust, while BSMV is a Municipal Bonds fund tracking the Invesco BulletShares Municipal Bond 2031 Index. FAAR is actively managed, while BSMV is passively managed. Over the past 3 years, FAAR returned 10.03%/yr vs 2.67%/yr for BSMV. At a correlation of -0.03, they often move in opposite directions. FAAR charges 0.95%/yr vs 0.18%/yr for BSMV.
Performance
FAAR vs. BSMV - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FAAR achieves a 17.40% return, which is significantly higher than BSMV's 0.64% return.
FAAR
- 1D
- -1.46%
- 1M
- -6.59%
- YTD
- 17.40%
- 6M
- 17.10%
- 1Y
- 28.26%
- 3Y*
- 10.03%
- 5Y*
- 7.50%
- 10Y*
- 4.54%
BSMV
- 1D
- -0.09%
- 1M
- 1.07%
- YTD
- 0.64%
- 6M
- 0.74%
- 1Y
- 4.91%
- 3Y*
- 2.67%
- 5Y*
- —
- 10Y*
- —
FAAR vs. BSMV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 17.40% | 8.07% | 5.97% | -5.63% | 10.15% | 4.78% |
BSMV Invesco BulletShares 2031 Municipal Bond ETF | 0.64% | 4.03% | -0.28% | 6.99% | -15.32% | 0.76% |
Correlation
The correlation between FAAR and BSMV is -0.25, 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 | -0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.04 |
Correlation (All Time) Calculated using the full available price history since Sep 21, 2021 | -0.03 |
Over the past year, the inverse relationship between FAAR and BSMV has strengthened: their correlation has moved from -0.03 to -0.25, meaning they now move in opposite directions more often than their long-term average.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FAAR vs. BSMV — Risk / Return Rank
FAAR
BSMV
FAAR vs. BSMV - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Invesco BulletShares 2031 Municipal Bond ETF (BSMV). 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.
| FAAR | BSMV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.11 | ||
| Sortino ratioReturn per unit of downside risk | +0.07 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.41 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 3.71 | 1.77 | +1.94 |
| Martin ratioReturn relative to average drawdown | 14.66 | 5.22 | +9.45 |
Loading charts...
Drawdowns
FAAR vs. BSMV - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum BSMV drawdown of -20.68%. Use the drawdown chart below to compare losses from any high point for FAAR and BSMV.
Loading charts...
Drawdown Indicators
| FAAR | BSMV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -20.68% | +2.65% |
Max Drawdown (1Y)Largest decline over 1 year | -7.66% | -2.79% | -4.87% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -6.63% | -4.91% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | — | — |
Current DrawdownCurrent decline from peak | -7.66% | -5.46% | -2.20% |
Average DrawdownAverage peak-to-trough decline | -7.82% | -10.37% | +2.55% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 0.94% | +0.99% |
Volatility
FAAR vs. BSMV - Volatility Comparison
First Trust Alternative Absolute Return Strategy ETF (FAAR) has a higher volatility of 2.82% compared to Invesco BulletShares 2031 Municipal Bond ETF (BSMV) at 0.67%. This indicates that FAAR's price experiences larger fluctuations and is considered to be riskier than BSMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| FAAR | BSMV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 0.67% | +2.15% |
Volatility (6M)Calculated over the trailing 6-month period | 9.80% | 1.81% | +7.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.30% | 2.42% | +10.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.97% | 5.66% | +7.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 5.66% | +5.89% |
FAAR vs. BSMV - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than BSMV's 0.18% expense ratio.
Dividends
FAAR vs. BSMV - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 9.80%, more than BSMV's 2.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
BSMV Invesco BulletShares 2031 Municipal Bond ETF | 2.90% | 2.93% | 3.10% | 2.59% | 2.21% | 0.24% | 0.00% | 0.00% | 0.00% | 0.00% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.80% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
Frequently Asked Questions
FAAR and BSMV have a correlation of -0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.82%) compared to BSMV (0.67%). In terms of maximum drawdown, FAAR dropped -18.03% vs BSMV's -20.68%.
On 3-year performance, FAAR leads with 10.03% vs 2.67% for BSMV. On fees, BSMV is cheaper at 0.18% per year. On volatility, BSMV has been the lower-risk option at 0.67%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, FAAR has performed better with a 10.03% return vs 2.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BSMV is cheaper with a 0.18% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.80%, compared with 2.90% for BSMV.
FAAR is categorized as Commodities, while BSMV is Municipal Bonds. They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.95% for FAAR and 0.18% for BSMV.
FAAR currently has the higher Sharpe Ratio (2.15 vs 2.04), 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.
Find the right allocation for FAAR and BSMV
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer