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 India 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 4.26%/yr vs 7.23%/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 16.56% return, which is significantly higher than NFTY's -8.35% return. Over the past 10 years, FAAR has underperformed NFTY with an annualized return of 4.26%, while NFTY has yielded a comparatively higher 7.23% annualized return.
FAAR
- 1D
- 0.39%
- 1M
- -4.15%
- 6M
- 11.51%
- YTD
- 16.56%
- 1Y
- 23.68%
- 3Y*
- 9.29%
- 5Y*
- 7.07%
- 10Y*
- 4.26%
NFTY
- 1D
- -0.21%
- 1M
- -1.78%
- 6M
- -7.54%
- YTD
- -8.35%
- 1Y
- -9.06%
- 3Y*
- 4.29%
- 5Y*
- 5.57%
- 10Y*
- 7.23%
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 | 16.56% | 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 | -8.35% | 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 -0.15, 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 | -0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.01 |
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 -0.15 (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 | +2.46 | ||
| Sortino ratioReturn per unit of downside risk | +3.51 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 0.91 | +0.41 |
| Calmar ratioReturn relative to maximum drawdown | 2.66 | -0.56 | +3.22 |
| Martin ratioReturn relative to average drawdown | 8.62 | -1.34 | +9.95 |
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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 | -8.94% | -16.14% | +7.20% |
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 | -8.32% | -16.22% | +7.90% |
Average DrawdownAverage peak-to-trough decline | -7.83% | -9.63% | +1.80% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.76% | 6.82% | -4.06% |
Volatility
FAAR vs. NFTY - Volatility Comparison
First Trust Alternative Absolute Return Strategy ETF (FAAR) and First Trust India NIFTY 50 Equal Weight ETF (NFTY) have volatilities of 2.92% and 3.01%, 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 | NFTY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.92% | 3.01% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 9.70% | 12.58% | -2.88% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.90% | 14.72% | -1.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.93% | 17.40% | -5.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 20.64% | -9.09% |
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 9.82%, more than NFTY's 1.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.82% | 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 | 1.93% | 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 -0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NFTY has higher volatility (3.01%) compared to FAAR (2.92%). In terms of maximum drawdown, FAAR dropped -18.03% vs NFTY's -47.67%.
On 10-year performance, NFTY leads with 7.23% vs 4.26% for FAAR. On fees, NFTY is cheaper at 0.80% per year. Their volatility is very similar. 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 7.23% return vs 4.26%. 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 9.82%, compared with 1.93% for NFTY.
FAAR is categorized as Commodities, while NFTY is India Equities. Their fees differ too: 0.95% for FAAR and 0.80% for NFTY.
FAAR currently has the higher Sharpe Ratio (1.84 vs -0.62), 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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