FAAR vs. PALL
FAAR (First Trust Alternative Absolute Return Strategy ETF) and PALL (Aberdeen Standard Physical Palladium Shares ETF) are both exchange-traded funds - FAAR is a Commodities fund actively managed by First Trust, while PALL is a Precious Metals fund tracking the Palladium London PM Fix ($/ozt). FAAR is actively managed, while PALL is passively managed. Over the past 10 years, FAAR returned 4.79%/yr vs 8.05%/yr for PALL. At a 0.16 correlation, their price movements are largely independent. FAAR charges 0.95%/yr vs 0.60%/yr for PALL.
Performance
FAAR vs. PALL - Performance Comparison
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Returns By Period
In the year-to-date period, FAAR achieves a 20.23% return, which is significantly higher than PALL's -21.28% return. Over the past 10 years, FAAR has underperformed PALL with an annualized return of 4.79%, while PALL has yielded a comparatively higher 8.05% annualized return.
FAAR
- 1D
- -0.05%
- 1M
- -4.34%
- YTD
- 20.23%
- 6M
- 19.92%
- 1Y
- 26.86%
- 3Y*
- 10.91%
- 5Y*
- 7.89%
- 10Y*
- 4.79%
PALL
- 1D
- -1.46%
- 1M
- -6.65%
- YTD
- -21.28%
- 6M
- -28.69%
- 1Y
- 19.34%
- 3Y*
- -1.19%
- 5Y*
- -14.09%
- 10Y*
- 8.05%
FAAR vs. PALL - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
PALL Aberdeen Standard Physical Palladium Shares ETF | -21.28% | 74.07% | -17.38% | -38.77% | -6.28% | -23.26% | 25.27% | 53.94% | 17.23% | 55.73% |
Correlation
The correlation between FAAR and PALL is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.13 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.17 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.16 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.16 |
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Return for Risk
FAAR vs. PALL — Risk / Return Rank
FAAR
PALL
FAAR vs. PALL - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Aberdeen Standard Physical Palladium Shares ETF (PALL). 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 | PALL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.64 | ||
| Sortino ratioReturn per unit of downside risk | +2.05 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.11 | +0.23 |
| Calmar ratioReturn relative to maximum drawdown | 4.75 | 0.48 | +4.27 |
| Martin ratioReturn relative to average drawdown | 14.70 | 1.06 | +13.63 |
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Drawdowns
FAAR vs. PALL - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum PALL drawdown of -73.63%. Use the drawdown chart below to compare losses from any high point for FAAR and PALL.
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Drawdown Indicators
| FAAR | PALL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -73.63% | +55.60% |
Max Drawdown (1Y)Largest decline over 1 year | -5.68% | -40.70% | +35.02% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -40.70% | +29.16% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -73.63% | +55.60% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -73.63% | +55.60% |
Current DrawdownCurrent decline from peak | -5.43% | -61.20% | +55.77% |
Average DrawdownAverage peak-to-trough decline | -7.82% | -26.90% | +19.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.89% | 18.21% | -16.32% |
Volatility
FAAR vs. PALL - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.47%, while Aberdeen Standard Physical Palladium Shares ETF (PALL) has a volatility of 12.68%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than PALL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | PALL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.47% | 12.68% | -10.21% |
Volatility (6M)Calculated over the trailing 6-month period | 9.68% | 42.46% | -32.78% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.37% | 51.08% | -37.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.95% | 42.41% | -29.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.53% | 38.03% | -26.50% |
FAAR vs. PALL - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than PALL's 0.60% expense ratio.
Dividends
FAAR vs. PALL - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 9.57%, while PALL has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.57% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
PALL Aberdeen Standard Physical Palladium Shares ETF | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FAAR and PALL have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PALL has higher volatility (12.68%) compared to FAAR (2.47%). In terms of maximum drawdown, FAAR dropped -18.03% vs PALL's -73.63%.
On 10-year performance, PALL leads with 8.05% vs 4.79% for FAAR. On fees, PALL is cheaper at 0.60% per year. On volatility, FAAR has been the lower-risk option at 2.47%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PALL has performed better with a 8.05% return vs 4.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PALL is cheaper with a 0.60% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.00% for PALL.
FAAR is categorized as Commodities, while PALL is Precious Metals. They also come from different issuers: First Trust and Aberdeen. Their fees differ too: 0.95% for FAAR and 0.60% for PALL.
FAAR currently has the higher Sharpe Ratio (2.02 vs 0.38), 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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