FAAR vs. NFTY
FAAR (First Trust Alternative Absolute Return Strategy ETF) and NFTY (First Trust India NIFTY 50 Equal Weight ETF) are both exchange-traded funds - FAAR is a Commodities fund actively managed by First Trust, while NFTY is a Asia Pacific Equities fund tracking the NIFTY 50 Equal Weight Index. FAAR is actively managed, while NFTY is passively managed. Over the past 10 years, FAAR returned 4.54%/yr vs 8.46%/yr for NFTY. At a 0.03 correlation, their price movements are largely independent. FAAR charges 0.95%/yr vs 0.80%/yr for NFTY.
Performance
FAAR vs. NFTY - 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 NFTY's -6.42% return. Over the past 10 years, FAAR has underperformed NFTY with an annualized return of 4.54%, while NFTY has yielded a comparatively higher 8.46% 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%
NFTY
- 1D
- 0.95%
- 1M
- 1.96%
- YTD
- -6.42%
- 6M
- -6.00%
- 1Y
- -6.40%
- 3Y*
- 6.64%
- 5Y*
- 5.92%
- 10Y*
- 8.46%
FAAR vs. NFTY - 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% |
NFTY First Trust India NIFTY 50 Equal Weight ETF | -6.42% | 5.47% | 5.18% | 24.00% | -3.46% | 26.83% | 10.04% | 0.58% | -1.51% | 21.78% |
Correlation
The correlation between FAAR and NFTY is -0.14, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.03 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.03 |
The correlation between FAAR and NFTY shifts across timeframes, from -0.14 (1 year) to 0.03 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
FAAR vs. NFTY — Risk / Return Rank
FAAR
NFTY
FAAR vs. NFTY - 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 India NIFTY 50 Equal Weight ETF (NFTY). 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 | NFTY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.58 | ||
| Sortino ratioReturn per unit of downside risk | +3.64 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 0.94 | +0.43 |
| Calmar ratioReturn relative to maximum drawdown | 3.71 | -0.40 | +4.11 |
| Martin ratioReturn relative to average drawdown | 14.66 | -0.97 | +15.64 |
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Drawdowns
FAAR vs. NFTY - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum NFTY drawdown of -47.67%. Use the drawdown chart below to compare losses from any high point for FAAR and NFTY.
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Drawdown Indicators
| FAAR | NFTY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -47.67% | +29.64% |
Max Drawdown (1Y)Largest decline over 1 year | -7.66% | -16.14% | +8.48% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -21.55% | +10.01% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -21.55% | +3.52% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -47.67% | +29.64% |
Current DrawdownCurrent decline from peak | -7.66% | -14.45% | +6.79% |
Average DrawdownAverage peak-to-trough decline | -7.82% | -9.60% | +1.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.93% | 6.58% | -4.65% |
Volatility
FAAR vs. NFTY - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.82%, while First Trust India NIFTY 50 Equal Weight ETF (NFTY) has a volatility of 4.32%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than NFTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | NFTY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.82% | 4.32% | -1.50% |
Volatility (6M)Calculated over the trailing 6-month period | 9.80% | 12.64% | -2.84% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.30% | 14.77% | -1.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.97% | 17.41% | -4.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 20.71% | -9.16% |
FAAR vs. NFTY - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than NFTY's 0.80% expense ratio.
Dividends
FAAR vs. NFTY - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 9.80%, more than NFTY's 1.89% 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% |
NFTY First Trust India NIFTY 50 Equal Weight ETF | 1.89% | 1.24% | 1.61% | 0.13% | 5.89% | 1.53% | 0.61% | 0.97% | 0.00% | 4.10% | 3.28% | 4.39% |
Frequently Asked Questions
FAAR and NFTY have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NFTY has higher volatility (4.32%) compared to FAAR (2.82%). In terms of maximum drawdown, FAAR dropped -18.03% vs NFTY's -47.67%.
On 10-year performance, NFTY leads with 8.46% vs 4.54% for FAAR. On fees, NFTY is cheaper at 0.80% 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, NFTY has performed better with a 8.46% return vs 4.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
NFTY is cheaper with a 0.80% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.80%, compared with 1.89% for NFTY.
FAAR is categorized as Commodities, while NFTY is Asia Pacific Equities. Their fees differ too: 0.95% for FAAR and 0.80% for NFTY.
FAAR currently has the higher Sharpe Ratio (2.15 vs -0.44), 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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