FAAR vs. BTC-USD
FAAR (First Trust Alternative Absolute Return Strategy ETF) is Commodities fund actively managed by First Trust, while BTC-USD (Bitcoin) is a cryptocurrency. Over the past 10 years, FAAR returned 4.54%/yr vs 57.69%/yr for BTC-USD. At a 0.02 correlation, their price movements are largely independent.
Performance
FAAR vs. BTC-USD - Performance Comparison
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Returns By Period
In the year-to-date period, FAAR achieves a 17.40% return, which is significantly higher than BTC-USD's -30.61% return. Over the past 10 years, FAAR has underperformed BTC-USD with an annualized return of 4.54%, while BTC-USD has yielded a comparatively higher 57.69% annualized 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%
BTC-USD
- 1D
- -3.08%
- 1M
- -21.40%
- YTD
- -30.61%
- 6M
- -30.69%
- 1Y
- -42.79%
- 3Y*
- 25.82%
- 5Y*
- 13.96%
- 10Y*
- 57.69%
FAAR vs. BTC-USD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 17.40% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
BTC-USD Bitcoin | -30.61% | -6.27% | 120.76% | 155.82% | -64.23% | 59.40% | 304.57% | 94.10% | -73.37% | 1,324.24% |
Correlation
The correlation between FAAR and BTC-USD is 0.04, 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 | 0.04 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.02 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.02 |
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Return for Risk
FAAR vs. BTC-USD — Risk / Return Rank
FAAR
BTC-USD
FAAR vs. BTC-USD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Bitcoin (BTC-USD). 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 | BTC-USD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +3.15 | ||
| Sortino ratioReturn per unit of downside risk | +4.53 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 0.85 | +0.51 |
| Calmar ratioReturn relative to maximum drawdown | 3.71 | -0.83 | +4.54 |
| Martin ratioReturn relative to average drawdown | 14.66 | -1.40 | +16.06 |
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Drawdowns
FAAR vs. BTC-USD - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum BTC-USD drawdown of -85.30%. Use the drawdown chart below to compare losses from any high point for FAAR and BTC-USD.
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Drawdown Indicators
| FAAR | BTC-USD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -85.30% | +67.27% |
Max Drawdown (1Y)Largest decline over 1 year | -7.66% | -51.32% | +43.66% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -51.32% | +39.78% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -76.67% | +58.64% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -83.80% | +65.77% |
Current DrawdownCurrent decline from peak | -7.66% | -51.32% | +43.66% |
Average DrawdownAverage peak-to-trough decline | -7.82% | -42.41% | +34.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 31.43% | -29.50% |
Volatility
FAAR vs. BTC-USD - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.82%, while Bitcoin (BTC-USD) has a volatility of 12.46%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than BTC-USD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | BTC-USD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 12.46% | -9.64% |
Volatility (6M)Calculated over the trailing 6-month period | 9.80% | 34.72% | -24.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.30% | 35.61% | -22.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.97% | 44.27% | -31.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 56.41% | -44.86% |
Frequently Asked Questions
FAAR and BTC-USD have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BTC-USD has higher volatility (12.46%) compared to FAAR (2.82%). In terms of maximum drawdown, FAAR dropped -18.03% vs BTC-USD's -85.30%.
FAAR currently has the higher Sharpe Ratio (2.15 vs -1.00), 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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