FAAR vs. PDBC
FAAR (First Trust Alternative Absolute Return Strategy ETF) and PDBC (Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF) are both Commodities funds. Both are actively managed. Over the past 10 years, FAAR returned 5.17%/yr vs 8.79%/yr for PDBC. At a 0.47 correlation, their price movements are largely independent. FAAR charges 0.95%/yr vs 0.58%/yr for PDBC.
Performance
FAAR vs. PDBC - Performance Comparison
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Returns By Period
In the year-to-date period, FAAR achieves a 25.73% return, which is significantly lower than PDBC's 36.23% return. Over the past 10 years, FAAR has underperformed PDBC with an annualized return of 5.17%, while PDBC has yielded a comparatively higher 8.79% annualized return.
FAAR
- 1D
- 0.01%
- 1M
- -0.79%
- YTD
- 25.73%
- 6M
- 23.17%
- 1Y
- 40.73%
- 3Y*
- 11.79%
- 5Y*
- 8.07%
- 10Y*
- 5.17%
PDBC
- 1D
- 0.39%
- 1M
- -3.37%
- YTD
- 36.23%
- 6M
- 36.27%
- 1Y
- 45.46%
- 3Y*
- 14.42%
- 5Y*
- 12.39%
- 10Y*
- 8.79%
FAAR vs. PDBC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 25.73% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
PDBC Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | 36.23% | 5.96% | 2.09% | -6.25% | 19.23% | 41.72% | -7.84% | 11.44% | -12.78% | 5.06% |
Correlation
The correlation between FAAR and PDBC is 0.78, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.57 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since May 24, 2016 | 0.47 |
Over the past year, FAAR and PDBC have become more correlated (0.78) than their long-term average of 0.47, meaning their price movements have been converging.
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Return for Risk
FAAR vs. PDBC — Risk / Return Rank
FAAR
PDBC
FAAR vs. PDBC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC). 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 | PDBC | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 3.04 | 2.46 | +0.58 |
Sortino ratioReturn per unit of downside risk | 4.23 | 3.14 | +1.09 |
Omega ratioGain probability vs. loss probability | 1.52 | 1.43 | +0.09 |
Calmar ratioReturn relative to maximum drawdown | 8.44 | 6.35 | +2.09 |
Martin ratioReturn relative to average drawdown | 23.64 | 13.39 | +10.25 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FAAR | PDBC | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 3.04 | 2.46 | +0.58 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.62 | 0.65 | -0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.45 | 0.50 | -0.05 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.45 | 0.23 | +0.22 |
Drawdowns
FAAR vs. PDBC - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum PDBC drawdown of -49.52%. Use the drawdown chart below to compare losses from any high point for FAAR and PDBC.
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Drawdown Indicators
| FAAR | PDBC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -49.52% | +31.49% |
Max Drawdown (1Y)Largest decline over 1 year | -4.85% | -7.19% | +2.34% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -13.95% | +2.41% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -27.63% | +9.60% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -40.73% | +22.70% |
Current DrawdownCurrent decline from peak | -1.11% | -4.55% | +3.44% |
Average DrawdownAverage peak-to-trough decline | -7.85% | -23.21% | +15.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.73% | 3.41% | -1.68% |
Volatility
FAAR vs. PDBC - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.44%, while Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC) has a volatility of 6.20%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than PDBC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | PDBC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.44% | 6.20% | -3.76% |
Volatility (6M)Calculated over the trailing 6-month period | 9.72% | 15.78% | -6.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.48% | 18.61% | -5.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.02% | 19.12% | -6.10% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.51% | 17.78% | -6.27% |
FAAR vs. PDBC - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than PDBC's 0.58% expense ratio.
Dividends
FAAR vs. PDBC - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 9.15%, more than PDBC's 2.82% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% |
PDBC Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | 2.82% | 3.84% | 4.42% | 4.21% | 13.05% | 50.83% | 0.01% | 1.40% | 1.00% | 3.83% | 6.51% |
Frequently Asked Questions
FAAR and PDBC have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PDBC has higher volatility (6.20%) compared to FAAR (2.44%). In terms of maximum drawdown, FAAR dropped -18.03% vs PDBC's -49.52%.
On 10-year performance, PDBC leads with 8.79% vs 5.17% for FAAR. On fees, PDBC is cheaper at 0.58% per year. On volatility, FAAR has been the lower-risk option at 2.44%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PDBC has performed better with a 8.79% return vs 5.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PDBC is cheaper with a 0.58% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.15%, compared with 2.82% for PDBC.
They also come from different issuers: First Trust and Invesco. Their fees differ too: 0.95% for FAAR and 0.58% for PDBC.
FAAR currently has the higher Sharpe Ratio (3.04 vs 2.46), 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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