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 5.17%/yr vs 60.00%/yr for BTC-USD. At a 0.02 correlation, their price movements are largely independent.
Performance
FAAR vs. BTC-USD - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FAAR achieves a 25.71% return, which is significantly higher than BTC-USD's -27.71% return. Over the past 10 years, FAAR has underperformed BTC-USD with an annualized return of 5.17%, while BTC-USD has yielded a comparatively higher 60.00% annualized return.
FAAR
- 1D
- 0.15%
- 1M
- -0.61%
- YTD
- 25.71%
- 6M
- 23.52%
- 1Y
- 41.39%
- 3Y*
- 11.78%
- 5Y*
- 8.35%
- 10Y*
- 5.17%
BTC-USD
- 1D
- -5.18%
- 1M
- -20.79%
- YTD
- -27.71%
- 6M
- -32.32%
- 1Y
- -40.02%
- 3Y*
- 32.61%
- 5Y*
- 11.41%
- 10Y*
- 60.00%
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 | 25.71% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
BTC-USD Bitcoin | -27.71% | -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 -0.00, 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 | -0.00 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.01 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since May 24, 2016 | 0.02 |
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. 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.
| FAAR | BTC-USD | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 3.09 | -0.93 | +4.02 |
Sortino ratioReturn per unit of downside risk | 4.29 | -1.31 | +5.60 |
Omega ratioGain probability vs. loss probability | 1.53 | 0.87 | +0.66 |
Calmar ratioReturn relative to maximum drawdown | 8.69 | -0.81 | +9.50 |
Martin ratioReturn relative to average drawdown | 24.41 | -1.42 | +25.83 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| FAAR | BTC-USD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.09 | -0.93 | +4.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.64 | 0.21 | +0.43 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.45 | 0.88 | -0.43 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 1.13 | -0.68 |
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.
Loading charts...
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 | -4.85% | -49.65% | +44.80% |
Max Drawdown (3Y)Largest decline over 3 years | -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 | -18.03% | -83.80% | +65.77% |
Current DrawdownCurrent decline from peak | -1.12% | -49.29% | +48.17% |
Average DrawdownAverage peak-to-trough decline | -7.85% | -42.27% | +34.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.73% | 33.73% | -32.00% |
Volatility
FAAR vs. BTC-USD - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.45%, while Bitcoin (BTC-USD) has a volatility of 10.81%. 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.
Loading charts...
Volatility by Period
| FAAR | BTC-USD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.45% | 10.81% | -8.36% |
Volatility (6M)Calculated over the trailing 6-month period | 9.73% | 34.33% | -24.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.48% | 35.60% | -22.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.03% | 45.05% | -32.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.51% | 56.69% | -45.18% |
Frequently Asked Questions
FAAR and BTC-USD have a correlation of -0.00, 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 (10.81%) compared to FAAR (2.45%). In terms of maximum drawdown, FAAR dropped -18.03% vs BTC-USD's -85.30%.
FAAR currently has the higher Sharpe Ratio (3.09 vs -0.93), 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 BTC-USD
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