FAAR vs. FUTY
FAAR (First Trust Alternative Absolute Return Strategy ETF) and FUTY (Fidelity MSCI Utilities Index ETF) are both exchange-traded funds - FAAR is a Commodities fund actively managed by First Trust, while FUTY is a Utilities Equities fund tracking the MSCI USA IMI Utilities Index. FAAR is actively managed, while FUTY is passively managed. Over the past 10 years, FAAR returned 4.54%/yr vs 9.37%/yr for FUTY. At a 0.02 correlation, their price movements are largely independent. FAAR charges 0.95%/yr vs 0.08%/yr for FUTY.
Performance
FAAR vs. FUTY - 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 FUTY's 7.80% return. Over the past 10 years, FAAR has underperformed FUTY with an annualized return of 4.54%, while FUTY has yielded a comparatively higher 9.37% 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%
FUTY
- 1D
- 0.91%
- 1M
- 0.87%
- YTD
- 7.80%
- 6M
- 7.41%
- 1Y
- 14.60%
- 3Y*
- 15.23%
- 5Y*
- 10.35%
- 10Y*
- 9.37%
FAAR vs. FUTY - 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% |
FUTY Fidelity MSCI Utilities Index ETF | 7.80% | 16.40% | 23.20% | -7.46% | 1.12% | 17.53% | -0.80% | 24.89% | 4.36% | 12.52% |
Correlation
The correlation between FAAR and FUTY is -0.01, 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 | -0.01 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.04 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.02 |
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Return for Risk
FAAR vs. FUTY — Risk / Return Rank
FAAR
FUTY
FAAR vs. FUTY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Fidelity MSCI Utilities Index ETF (FUTY). 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 | FUTY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.13 | ||
| Sortino ratioReturn per unit of downside risk | +1.66 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.18 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 3.71 | 1.64 | +2.07 |
| Martin ratioReturn relative to average drawdown | 14.66 | 3.50 | +11.16 |
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Drawdowns
FAAR vs. FUTY - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum FUTY drawdown of -36.44%. Use the drawdown chart below to compare losses from any high point for FAAR and FUTY.
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Drawdown Indicators
| FAAR | FUTY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -36.44% | +18.41% |
Max Drawdown (1Y)Largest decline over 1 year | -7.66% | -8.93% | +1.27% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -17.35% | +5.81% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -25.11% | +7.08% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -36.44% | +18.41% |
Current DrawdownCurrent decline from peak | -7.66% | -3.12% | -4.54% |
Average DrawdownAverage peak-to-trough decline | -7.82% | -6.03% | -1.79% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 4.18% | -2.25% |
Volatility
FAAR vs. FUTY - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.82%, while Fidelity MSCI Utilities Index ETF (FUTY) has a volatility of 5.24%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than FUTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | FUTY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 5.24% | -2.42% |
Volatility (6M)Calculated over the trailing 6-month period | 9.80% | 11.51% | -1.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.30% | 14.44% | -1.14% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.97% | 17.06% | -4.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 19.07% | -7.52% |
FAAR vs. FUTY - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than FUTY's 0.08% expense ratio.
Dividends
FAAR vs. FUTY - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 9.80%, more than FUTY's 2.57% 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% |
FUTY Fidelity MSCI Utilities Index ETF | 2.57% | 2.67% | 2.96% | 3.31% | 2.72% | 2.70% | 3.07% | 2.82% | 3.11% | 3.03% | 3.35% | 4.33% |
Frequently Asked Questions
FAAR and FUTY have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FUTY has higher volatility (5.24%) compared to FAAR (2.82%). In terms of maximum drawdown, FAAR dropped -18.03% vs FUTY's -36.44%.
On 10-year performance, FUTY leads with 9.37% vs 4.54% for FAAR. On fees, FUTY is cheaper at 0.08% per year. On volatility, FAAR has been the lower-risk option at 2.82%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FUTY has performed better with a 9.37% return vs 4.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FUTY is cheaper with a 0.08% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.80%, compared with 2.57% for FUTY.
FAAR is categorized as Commodities, while FUTY is Utilities Equities. They also come from different issuers: First Trust and Fidelity. Their fees differ too: 0.95% for FAAR and 0.08% for FUTY.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.02), 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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