FAAR vs. FTGC
FAAR (First Trust Alternative Absolute Return Strategy ETF) and FTGC (First Trust Global Tactical Commodity Strategy Fund) are both Commodities funds from First Trust. Both are actively managed. Over the past 10 years, FAAR returned 4.29%/yr vs 7.64%/yr for FTGC. At a 0.48 correlation, their price movements are largely independent. Both charge a 0.95% expense ratio.
Performance
FAAR vs. FTGC - Performance Comparison
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Returns By Period
In the year-to-date period, FAAR achieves a 16.98% return, which is significantly lower than FTGC's 25.81% return. Over the past 10 years, FAAR has underperformed FTGC with an annualized return of 4.29%, while FTGC has yielded a comparatively higher 7.64% annualized return.
FAAR
- 1D
- 0.31%
- 1M
- -4.62%
- 6M
- 11.94%
- YTD
- 16.98%
- 1Y
- 23.72%
- 3Y*
- 9.36%
- 5Y*
- 7.09%
- 10Y*
- 4.29%
FTGC
- 1D
- 1.13%
- 1M
- 3.25%
- 6M
- 21.22%
- YTD
- 25.81%
- 1Y
- 35.01%
- 3Y*
- 15.37%
- 5Y*
- 13.11%
- 10Y*
- 7.64%
FAAR vs. FTGC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 16.98% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
FTGC First Trust Global Tactical Commodity Strategy Fund | 25.81% | 14.61% | 9.96% | -5.36% | 17.36% | 27.95% | 2.17% | 6.40% | -12.75% | 2.73% |
Correlation
The correlation between FAAR and FTGC is 0.80, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.80 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.62 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.48 |
Over the past year, FAAR and FTGC have become more correlated (0.80) than their long-term average of 0.48, meaning their price movements have been converging.
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Return for Risk
FAAR vs. FTGC — Risk / Return Rank
FAAR
FTGC
FAAR vs. FTGC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and First Trust Global Tactical Commodity Strategy Fund (FTGC). 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 | FTGC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.38 | ||
| Sortino ratioReturn per unit of downside risk | -0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.39 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 2.66 | 2.85 | -0.18 |
| Martin ratioReturn relative to average drawdown | 8.98 | 9.53 | -0.55 |
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Drawdowns
FAAR vs. FTGC - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum FTGC drawdown of -59.47%. Use the drawdown chart below to compare losses from any high point for FAAR and FTGC.
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Drawdown Indicators
| FAAR | FTGC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -59.47% | +41.44% |
Max Drawdown (1Y)Largest decline over 1 year | -8.94% | -12.34% | +3.40% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -12.34% | +0.80% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -22.64% | +4.61% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -35.91% | +17.88% |
Current DrawdownCurrent decline from peak | -7.98% | -5.66% | -2.32% |
Average DrawdownAverage peak-to-trough decline | -7.82% | -27.26% | +19.44% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 3.68% | -1.03% |
Volatility
FAAR vs. FTGC - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.81%, while First Trust Global Tactical Commodity Strategy Fund (FTGC) has a volatility of 4.35%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than FTGC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | FTGC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.81% | 4.35% | -1.54% |
Volatility (6M)Calculated over the trailing 6-month period | 9.77% | 13.39% | -3.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.93% | 15.77% | -2.84% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.92% | 15.88% | -3.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 14.72% | -3.17% |
FAAR vs. FTGC - Expense Ratio Comparison
Both FAAR and FTGC have an expense ratio of 0.95%.
Dividends
FAAR vs. FTGC - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 9.78%, less than FTGC's 15.40% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.78% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
FTGC First Trust Global Tactical Commodity Strategy Fund | 15.40% | 17.74% | 3.05% | 3.34% | 10.35% | 7.21% | 0.00% | 0.81% | 0.80% | 1.21% |
Frequently Asked Questions
FAAR and FTGC have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FTGC has higher volatility (4.35%) compared to FAAR (2.81%). In terms of maximum drawdown, FAAR dropped -18.03% vs FTGC's -59.47%.
On 10-year performance, FTGC leads with 7.64% vs 4.29% for FAAR. Both ETFs have the same 0.95% expense ratio. On volatility, FAAR has been the lower-risk option at 2.81%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FTGC has performed better with a 7.64% return vs 4.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAAR and FTGC have the same expense ratio: 0.95% per year.
FTGC has the higher dividend yield at 15.40%, compared with 9.78% for FAAR.
FTGC currently has the higher Sharpe Ratio (2.23 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.
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