FAAR vs. KEUA

Last updated Jun 3, 2026

FAAR (First Trust Alternative Absolute Return Strategy ETF) and KEUA (KraneShares European Carbon Allowance Strategy ETF) are both Commodities funds. FAAR is actively managed, while KEUA is passively managed. At a 0.01 correlation, their price movements are largely independent. FAAR charges 0.95%/yr vs 0.87%/yr for KEUA.

Performance

FAAR vs. KEUA - Performance Comparison

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

Returns By Period

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%

KEUA

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FAAR vs. KEUA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FAAR First Trust Alternative Absolute Return Strategy ETF	25.71%	8.07%	5.97%	-5.63%	10.15%	-2.54%
KEUA KraneShares European Carbon Allowance Strategy ETF	-19.02%	32.81%	-14.52%	-3.14%	-2.74%	22.01%

Correlation

The correlation between FAAR and KEUA is 0.02, 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	0.02
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Oct 6, 2021	0.01

Return for Risk

FAAR vs. KEUA — 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

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. KEUA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and KraneShares European Carbon Allowance Strategy ETF (KEUA). 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	KEUA	Difference
Sharpe ratio Return per unit of total volatility	3.09	—	—
Sortino ratio Return per unit of downside risk	4.29	—	—
Omega ratio Gain probability vs. loss probability	1.53	—	—
Calmar ratio Return relative to maximum drawdown	8.69	—	—
Martin ratio Return relative to average drawdown	24.41	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	FAAR	KEUA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.09	—	—
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	—	—

Drawdowns

Drawdown Indicators

	FAAR	KEUA	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-4.85%	—	—
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%	—	—
Average Drawdown Average peak-to-trough decline	-7.85%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	1.73%	—	—

Volatility

Volatility by Period

	FAAR	KEUA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.45%	—	—
Volatility (6M) Calculated over the trailing 6-month period	9.73%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	13.48%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.03%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.51%	—	—

FAAR vs. KEUA - Expense Ratio Comparison

FAAR has a 0.95% expense ratio, which is higher than KEUA's 0.87% expense ratio.

Dividends

FAAR vs. KEUA - Dividend Comparison

FAAR's dividend yield for the trailing twelve months is around 9.15%, more than KEUA's 2.83% 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%
KEUA KraneShares European Carbon Allowance Strategy ETF	2.83%	2.29%	7.71%	5.67%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FAAR and KEUA in my portfolio?

FAAR and KEUA have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FAAR or KEUA?

On fees, KEUA is cheaper at 0.87% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FAAR or KEUA?

KEUA is cheaper with a 0.87% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.15%, compared with 2.83% for KEUA.

What is the main difference between FAAR and KEUA?

They also come from different issuers: First Trust and KraneShares. Their fees differ too: 0.95% for FAAR and 0.87% for KEUA.