FAAR vs. FTHI
FAAR (First Trust Alternative Absolute Return Strategy ETF) and FTHI (First Trust BuyWrite Income ETF) are both exchange-traded funds - FAAR is a Commodities fund actively managed by First Trust, while FTHI is a Derivative Income fund actively managed by First Trust. Both are actively managed. Over the past 10 years, FAAR returned 4.54%/yr vs 8.63%/yr for FTHI. At a 0.10 correlation, their price movements are largely independent. FAAR charges 0.95%/yr vs 0.85%/yr for FTHI.
Performance
FAAR vs. FTHI - Performance Comparison
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Returns By Period
In the year-to-date period, FAAR achieves a 17.40% return, which is significantly higher than FTHI's 4.57% return. Over the past 10 years, FAAR has underperformed FTHI with an annualized return of 4.54%, while FTHI has yielded a comparatively higher 8.63% annualized return.
FAAR
- 1D
- -1.46%
- 1M
- -6.59%
- YTD
- 17.40%
- 6M
- 17.10%
- 1Y
- 28.26%
- 3Y*
- 10.03%
- 5Y*
- 7.50%
- 10Y*
- 4.54%
FTHI
- 1D
- -0.29%
- 1M
- -0.34%
- YTD
- 4.57%
- 6M
- 3.65%
- 1Y
- 14.20%
- 3Y*
- 14.17%
- 5Y*
- 10.11%
- 10Y*
- 8.63%
FAAR vs. FTHI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 17.40% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
FTHI First Trust BuyWrite Income ETF | 4.57% | 11.03% | 19.02% | 20.72% | -4.37% | 13.95% | -7.13% | 18.16% | -9.72% | 14.41% |
Correlation
The correlation between FAAR and FTHI is -0.05, 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 | -0.05 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.02 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.09 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.10 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.10 |
The correlation between FAAR and FTHI shifts across timeframes, from -0.05 (1 year) to 0.10 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
FAAR vs. FTHI — Risk / Return Rank
FAAR
FTHI
FAAR vs. FTHI - 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 BuyWrite Income ETF (FTHI). 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 | FTHI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.57 | ||
| Sortino ratioReturn per unit of downside risk | +0.81 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.30 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 3.71 | 2.61 | +1.10 |
| Martin ratioReturn relative to average drawdown | 14.66 | 11.14 | +3.53 |
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Drawdowns
FAAR vs. FTHI - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum FTHI drawdown of -32.65%. Use the drawdown chart below to compare losses from any high point for FAAR and FTHI.
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Drawdown Indicators
| FAAR | FTHI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -32.65% | +14.62% |
Max Drawdown (1Y)Largest decline over 1 year | -7.66% | -5.47% | -2.19% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -15.92% | +4.38% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -16.70% | -1.33% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -32.65% | +14.62% |
Current DrawdownCurrent decline from peak | -7.66% | -1.00% | -6.66% |
Average DrawdownAverage peak-to-trough decline | -7.82% | -3.67% | -4.15% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 1.28% | +0.65% |
Volatility
FAAR vs. FTHI - Volatility Comparison
First Trust Alternative Absolute Return Strategy ETF (FAAR) and First Trust BuyWrite Income ETF (FTHI) have volatilities of 2.82% and 2.70%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | FTHI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 2.70% | +0.12% |
Volatility (6M)Calculated over the trailing 6-month period | 9.80% | 7.29% | +2.51% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.30% | 9.06% | +4.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.97% | 13.43% | -0.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 14.29% | -2.74% |
FAAR vs. FTHI - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than FTHI's 0.85% expense ratio.
Dividends
FAAR vs. FTHI - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 9.80%, more than FTHI's 8.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.80% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% | 0.00% | 0.00% |
FTHI First Trust BuyWrite Income ETF | 8.75% | 8.70% | 8.61% | 8.50% | 9.06% | 4.37% | 4.76% | 4.21% | 4.76% | 4.00% | 4.41% | 4.98% |
Frequently Asked Questions
FAAR and FTHI have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.82%) compared to FTHI (2.70%). In terms of maximum drawdown, FAAR dropped -18.03% vs FTHI's -32.65%.
On 10-year performance, FTHI leads with 8.63% vs 4.54% for FAAR. On fees, FTHI is cheaper at 0.85% per year. On volatility, FTHI has been the lower-risk option at 2.70%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FTHI has performed better with a 8.63% return vs 4.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FTHI is cheaper with a 0.85% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.80%, compared with 8.75% for FTHI.
FAAR is categorized as Commodities, while FTHI is Derivative Income. Their fees differ too: 0.95% for FAAR and 0.85% for FTHI.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.58), 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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