FAAR vs. KEUA

Last updated Apr 2, 2026

Compare and contrast key facts about First Trust Alternative Absolute Return Strategy ETF (FAAR) and KraneShares European Carbon Allowance Strategy ETF (KEUA).

FAAR and KEUA are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FAAR is an actively managed fund by First Trust. It was launched on May 18, 2016. KEUA is a passively managed fund by KraneShares that tracks the performance of the S&P Carbon Credit EUA Index. It was launched on Oct 4, 2021.

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.

FAAR vs. KEUA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FAAR First Trust Alternative Absolute Return Strategy ETF	24.50%	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%

Returns By Period

In the year-to-date period, FAAR achieves a 24.50% return, which is significantly higher than KEUA's -19.02% return.

FAAR

• 1D: -0.35%
• 1M: 7.76%
• YTD: 24.50%
• 6M: 22.58%
• 1Y: 30.52%
• 3Y*: 10.43%
• 5Y*: 9.33%
• 10Y*: —

KEUA

• 1D: 0.00%
• 1M: -0.46%
• YTD: -19.02%
• 6M: -8.94%
• 1Y: 8.03%
• 3Y*: -6.52%
• 5Y*: —
• 10Y*: —

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

FAAR vs. KEUA - Expense Ratio Comparison

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

FAAR

First Trust Alternative Absolute Return Strategy ETF

KEUA

KraneShares European Carbon Allowance Strategy ETF

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: 83
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 85
FAAR Calmar Ratio Rank: 83
FAAR Martin Ratio Rank: 69

KEUA

KEUA Risk / Return Rank: 14
KEUA Sharpe Ratio Rank: 14
KEUA Sortino Ratio Rank: 15
KEUA Omega Ratio Rank: 15
KEUA Calmar Ratio Rank: 12
KEUA Martin Ratio Rank: 12

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	2.00	0.11	+1.89
Sortino ratio Return per unit of downside risk	2.69	0.34	+2.35
Omega ratio Gain probability vs. loss probability	1.35	1.04	+0.31
Calmar ratio Return relative to maximum drawdown	2.57	0.05	+2.51
Martin ratio Return relative to average drawdown	7.53	0.15	+7.38
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. KEUA - Sharpe Ratio Comparison

The current FAAR Sharpe Ratio is 2.00, which is higher than the KEUA Sharpe Ratio of 0.11. The chart below compares the historical Sharpe Ratios of FAAR and KEUA, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	FAAR	KEUA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	0.11	+1.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.72	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.03	+0.42

Correlation

The correlation between FAAR and KEUA is 0.01, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.

Dividends

FAAR vs. KEUA - Dividend Comparison

FAAR's dividend yield for the trailing twelve months is around 9.24%, more than KEUA's 2.83% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.24%	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%

Drawdowns

FAAR vs. KEUA - Drawdown Comparison

The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum KEUA drawdown of -49.21%. Use the drawdown chart below to compare losses from any high point for FAAR and KEUA.

Drawdown Indicators

	FAAR	KEUA	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-49.21%	+31.18%
Max Drawdown (1Y) Largest decline over 1 year	-11.54%	-23.06%	+11.52%
Max Drawdown (5Y) Largest decline over 5 years	-18.03%	—	—
Current Drawdown Current decline from peak	-0.86%	-28.26%	+27.40%
Average Drawdown Average peak-to-trough decline	-7.97%	-23.35%	+15.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.93%	8.25%	-4.32%

Volatility

FAAR vs. KEUA - Volatility Comparison

First Trust Alternative Absolute Return Strategy ETF (FAAR) and KraneShares European Carbon Allowance Strategy ETF (KEUA) have volatilities of 5.66% and 5.87%, 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.

Volatility by Period

	FAAR	KEUA	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.66%	5.87%	-0.21%
Volatility (6M) Calculated over the trailing 6-month period	10.65%	20.60%	-9.95%
Volatility (1Y) Calculated over the trailing 1-year period	15.32%	27.55%	-12.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.00%	41.09%	-28.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.54%	41.09%	-29.55%