FAAR vs. FCBD

Last updated Jun 3, 2026

FAAR (First Trust Alternative Absolute Return Strategy ETF) and FCBD (Frontier Asset Core Bond ETF) are both exchange-traded funds - FAAR is a Commodities fund actively managed by First Trust, while FCBD is a Intermediate Core Bond fund actively managed by Frontier. Both are actively managed. Over the past year, FAAR returned 41.39% vs 4.32% for FCBD. At a correlation of -0.23, they often move in opposite directions. FAAR charges 0.95%/yr vs 0.90%/yr for FCBD.

Performance

FAAR vs. FCBD - Performance Comparison

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

Returns By Period

In the year-to-date period, FAAR achieves a 25.71% return, which is significantly higher than FCBD's 0.38% 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%

FCBD

• 1D: 0.22%
• 1M: -0.00%
• YTD: 0.38%
• 6M: 0.60%
• 1Y: 4.32%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FAAR vs. FCBD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAAR First Trust Alternative Absolute Return Strategy ETF	25.71%	8.07%	0.21%
FCBD Frontier Asset Core Bond ETF	0.38%	6.29%	0.04%

Correlation

The correlation between FAAR and FCBD is -0.28, 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	-0.28
Correlation (All Time) Calculated using the full available price history since Dec 23, 2024	-0.23

Return for Risk

FAAR vs. FCBD — Risk / Return Rank

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

FAAR

FAAR Risk / Return Rank: 91
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 91
FAAR Omega Ratio Rank: 85
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 93

FCBD

FCBD Risk / Return Rank: 52
FCBD Sharpe Ratio Rank: 53
FCBD Sortino Ratio Rank: 57
FCBD Omega Ratio Rank: 53
FCBD Calmar Ratio Rank: 50
FCBD Martin Ratio Rank: 47

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. FCBD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Frontier Asset Core Bond ETF (FCBD). 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	FCBD	Difference
Sharpe ratio Return per unit of total volatility	3.09	1.85	+1.24
Sortino ratio Return per unit of downside risk	4.29	2.76	+1.52
Omega ratio Gain probability vs. loss probability	1.53	1.34	+0.19
Calmar ratio Return relative to maximum drawdown	8.69	2.56	+6.14
Martin ratio Return relative to average drawdown	24.41	7.89	+16.52
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. FCBD - Sharpe Ratio Comparison

The current FAAR Sharpe Ratio is 3.09, which is higher than the FCBD Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of FAAR and FCBD, 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	FCBD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.09	1.85	+1.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.64	—	—
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	1.80	-1.35

Drawdowns

FAAR vs. FCBD - Drawdown Comparison

The maximum FAAR drawdown since its inception was -18.03%, which is greater than FCBD's maximum drawdown of -1.64%. Use the drawdown chart below to compare losses from any high point for FAAR and FCBD.

Drawdown Indicators

	FAAR	FCBD	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-1.64%	-16.39%
Max Drawdown (1Y) Largest decline over 1 year	-4.85%	-1.64%	-3.21%
Max Drawdown (3Y) Largest decline over 3 years	-11.54%	—	—
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	-1.12%	-0.82%	-0.30%
Average Drawdown Average peak-to-trough decline	-7.85%	-0.35%	-7.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.73%	0.53%	+1.20%

Volatility

FAAR vs. FCBD - Volatility Comparison

First Trust Alternative Absolute Return Strategy ETF (FAAR) has a higher volatility of 2.45% compared to Frontier Asset Core Bond ETF (FCBD) at 0.87%. This indicates that FAAR's price experiences larger fluctuations and is considered to be riskier than FCBD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAAR	FCBD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.45%	0.87%	+1.58%
Volatility (6M) Calculated over the trailing 6-month period	9.73%	1.74%	+7.99%
Volatility (1Y) Calculated over the trailing 1-year period	13.48%	2.35%	+11.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.03%	2.60%	+10.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.51%	2.60%	+8.91%

FAAR vs. FCBD - Expense Ratio Comparison

FAAR has a 0.95% expense ratio, which is higher than FCBD's 0.90% expense ratio.

Dividends

FAAR vs. FCBD - Dividend Comparison

FAAR's dividend yield for the trailing twelve months is around 9.15%, more than FCBD's 4.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
FCBD Frontier Asset Core Bond ETF	4.22%	4.34%	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FAAR and FCBD in my portfolio?

FAAR and FCBD have a correlation of -0.28, 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 FCBD?

FAAR has higher volatility (2.45%) compared to FCBD (0.87%). In terms of maximum drawdown, FAAR dropped -18.03% vs FCBD's -1.64%.

Which ETF is better, FAAR or FCBD?

On 1-year performance, FAAR leads with 41.39% vs 4.32% for FCBD. On fees, FCBD is cheaper at 0.90% per year. On volatility, FCBD has been the lower-risk option at 0.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FAAR or FCBD?

Over the 1-year period, FAAR has performed better with a 41.39% return vs 4.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAAR or FCBD?

FCBD is cheaper with a 0.90% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.15%, compared with 4.22% for FCBD.

What is the main difference between FAAR and FCBD?

FAAR is categorized as Commodities, while FCBD is Intermediate Core Bond. They also come from different issuers: First Trust and Frontier. Their fees differ too: 0.95% for FAAR and 0.90% for FCBD.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (3.09 vs 1.85), 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.