FAAR vs. BTC-USD

Last updated Apr 2, 2026

Compare and contrast key facts about First Trust Alternative Absolute Return Strategy ETF (FAAR) and Bitcoin (BTC-USD).

FAAR is an actively managed fund by First Trust. It was launched on May 18, 2016.

Performance

FAAR vs. BTC-USD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Alternative Absolute Return Strategy ETF (FAAR) and Bitcoin (BTC-USD). The values are adjusted to include any dividend payments, if applicable.

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	24.50%	8.07%	5.97%	-5.63%	10.15%	12.34%	8.60%	-1.28%	-9.17%	5.00%
BTC-USD Bitcoin	-21.63%	-6.27%	120.76%	155.82%	-64.23%	59.40%	304.57%	94.10%	-73.37%	1,324.24%

Returns By Period

In the year-to-date period, FAAR achieves a 24.50% return, which is significantly higher than BTC-USD's -21.63% return.

FAAR

• 1D: -0.35%
• 1M: 7.76%
• YTD: 24.50%
• 6M: 22.58%
• 1Y: 30.52%
• 3Y*: 10.43%
• 5Y*: 9.33%
• 10Y*: —

BTC-USD

• 1D: 0.51%
• 1M: -0.38%
• YTD: -21.63%
• 6M: -42.21%
• 1Y: -19.49%
• 3Y*: 34.49%
• 5Y*: 3.06%
• 10Y*: 66.45%

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

Return for Risk

FAAR vs. BTC-USD — Risk / Return Rank

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

FAAR

FAAR Risk / Return Rank: 83
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 85
FAAR Calmar Ratio Rank: 83
FAAR Martin Ratio Rank: 69

BTC-USD

BTC-USD Risk / Return Rank: 43
BTC-USD Sharpe Ratio Rank: 61
BTC-USD Sortino Ratio Rank: 55
BTC-USD Omega Ratio Rank: 51
BTC-USD Calmar Ratio Rank: 43
BTC-USD Martin Ratio Rank: 4

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.

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.

	FAAR	BTC-USD	Difference
Sharpe ratio Return per unit of total volatility	2.00	-0.44	+2.45
Sortino ratio Return per unit of downside risk	2.69	-0.38	+3.07
Omega ratio Gain probability vs. loss probability	1.35	0.96	+0.39
Calmar ratio Return relative to maximum drawdown	2.57	-1.11	+3.67
Martin ratio Return relative to average drawdown	7.53	-1.99	+9.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FAAR vs. BTC-USD - Sharpe Ratio Comparison

The current FAAR Sharpe Ratio is 2.00, which is higher than the BTC-USD Sharpe Ratio of -0.44. The chart below compares the historical Sharpe Ratios of FAAR and BTC-USD, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	FAAR	BTC-USD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	-0.44	+2.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	0.05	+0.67
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.97	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	1.19	-0.74

Correlation

The correlation between FAAR and BTC-USD is 0.02, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

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.

Drawdown Indicators

	FAAR	BTC-USD	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-85.30%	+67.27%
Max Drawdown (1Y) Largest decline over 1 year	-11.54%	-49.65%	+38.11%
Max Drawdown (5Y) Largest decline over 5 years	-18.03%	-76.67%	+58.64%
Max Drawdown (10Y) Largest decline over 10 years	—	-83.80%	—
Current Drawdown Current decline from peak	-0.86%	-45.02%	+44.16%
Average Drawdown Average peak-to-trough decline	-7.97%	-41.99%	+34.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.93%	27.60%	-23.67%

Volatility

FAAR vs. BTC-USD - Volatility Comparison

The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 5.66%, while Bitcoin (BTC-USD) has a volatility of 13.58%. 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.

Volatility by Period

	FAAR	BTC-USD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.66%	13.58%	-7.92%
Volatility (6M) Calculated over the trailing 6-month period	10.65%	35.98%	-25.33%
Volatility (1Y) Calculated over the trailing 1-year period	15.32%	36.76%	-21.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.00%	46.90%	-33.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.54%	56.70%	-45.16%