FAAR vs. BWET

Last updated Jun 4, 2026

FAAR (First Trust Alternative Absolute Return Strategy ETF) and BWET (Breakwave Tanker Shipping ETF) are both Commodities funds. FAAR is actively managed, while BWET is passively managed. Over the past 3 years, FAAR returned 11.79%/yr vs 129.64%/yr for BWET. At a 0.05 correlation, their price movements are largely independent. FAAR charges 0.95%/yr vs 3.50%/yr for BWET.

Performance

FAAR vs. BWET - Performance Comparison

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

Returns By Period

In the year-to-date period, FAAR achieves a 25.73% return, which is significantly lower than BWET's 875.88% return.

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%

BWET

• 1D: 4.26%
• 1M: 9.15%
• YTD: 875.88%
• 6M: 735.56%
• 1Y: 1,800.91%
• 3Y*: 129.64%
• 5Y*: —
• 10Y*: —

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

FAAR vs. BWET - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FAAR First Trust Alternative Absolute Return Strategy ETF	25.73%	8.07%	5.97%	-3.01%
BWET Breakwave Tanker Shipping ETF	875.88%	96.22%	-39.21%	15.94%

Correlation

The correlation between FAAR and BWET 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	0.05
Correlation (All Time) Calculated using the full available price history since May 4, 2023	0.05

FAAR vs. BWET - Sectors Allocation Comparison

Sectors	FAAR	BWET
Financial Services	100.0%	8.6%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

FAAR vs. BWET — 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

BWET

BWET Risk / Return Rank: 99
BWET Sharpe Ratio Rank: 100
BWET Sortino Ratio Rank: 97
BWET Omega Ratio Rank: 97
BWET Calmar Ratio Rank: 100
BWET Martin Ratio Rank: 99

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. BWET - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Breakwave Tanker Shipping ETF (BWET). 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	BWET	Difference
Sharpe ratio Return per unit of total volatility	3.04	18.57	-15.53
Sortino ratio Return per unit of downside risk	4.23	6.55	-2.33
Omega ratio Gain probability vs. loss probability	1.52	1.96	-0.44
Calmar ratio Return relative to maximum drawdown	8.44	59.51	-51.06
Martin ratio Return relative to average drawdown	23.64	158.07	-134.43
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. BWET - Sharpe Ratio Comparison

The current FAAR Sharpe Ratio is 3.04, which is lower than the BWET Sharpe Ratio of 18.57. The chart below compares the historical Sharpe Ratios of FAAR and BWET, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FAAR	BWET	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.04	18.57	-15.53
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	0.45	1.90	-1.45

Drawdowns

FAAR vs. BWET - Drawdown Comparison

The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum BWET drawdown of -56.90%. Use the drawdown chart below to compare losses from any high point for FAAR and BWET.

Drawdown Indicators

	FAAR	BWET	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-56.90%	+38.87%
Max Drawdown (1Y) Largest decline over 1 year	-4.85%	-30.64%	+25.79%
Max Drawdown (3Y) Largest decline over 3 years	-11.54%	-56.90%	+45.36%
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	-1.11%	-11.29%	+10.18%
Average Drawdown Average peak-to-trough decline	-7.85%	-24.09%	+16.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.73%	11.51%	-9.78%

Volatility

FAAR vs. BWET - Volatility Comparison

The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.44%, while Breakwave Tanker Shipping ETF (BWET) has a volatility of 33.96%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than BWET based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAAR	BWET	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.44%	33.96%	-31.52%
Volatility (6M) Calculated over the trailing 6-month period	9.72%	88.49%	-78.77%
Volatility (1Y) Calculated over the trailing 1-year period	13.48%	98.35%	-84.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.02%	70.45%	-57.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.51%	70.45%	-58.94%

FAAR vs. BWET - Expense Ratio Comparison

FAAR has a 0.95% expense ratio, which is lower than BWET's 3.50% expense ratio.

Dividends

FAAR vs. BWET - Dividend Comparison

FAAR's dividend yield for the trailing twelve months is around 9.15%, while BWET has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
BWET Breakwave Tanker Shipping ETF	0.00%	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 FAAR and BWET in my portfolio?

FAAR and BWET 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.

Which is riskier, FAAR or BWET?

BWET has higher volatility (33.96%) compared to FAAR (2.44%). In terms of maximum drawdown, FAAR dropped -18.03% vs BWET's -56.90%.

Which ETF is better, FAAR or BWET?

On 3-year performance, BWET leads with 129.64% vs 11.79% for FAAR. On fees, FAAR is cheaper at 0.95% per year. On volatility, FAAR has been the lower-risk option at 2.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAAR or BWET?

Over the 3-year period, BWET has performed better with a 129.64% return vs 11.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAAR or BWET?

FAAR is cheaper with a 0.95% expense ratio, compared with 3.50% for BWET.

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

FAAR has the higher dividend yield at 9.15%, compared with 0.00% for BWET.

What is the main difference between FAAR and BWET?

They also come from different issuers: First Trust and Amplify. Their fees differ too: 0.95% for FAAR and 3.50% for BWET.

Which has better risk-adjusted returns?

BWET currently has the higher Sharpe Ratio (18.57 vs 3.04), 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.