FAAR vs. RLY
FAAR (First Trust Alternative Absolute Return Strategy ETF) and RLY (State Street Multi-Asset Real Return ETF) are both exchange-traded funds - FAAR is a Commodities fund actively managed by First Trust, while RLY is a Global Allocation fund tracking the Bloomberg U.S. Government Inflation-Linked Bond Index. FAAR is actively managed, while RLY is passively managed. Over the past 10 years, FAAR returned 4.20%/yr vs 8.16%/yr for RLY. Their 0.35 correlation means their historical movements had little consistent relationship. FAAR charges 0.95%/yr vs 0.50%/yr for RLY.
Performance
FAAR vs. RLY - Performance Comparison
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Returns By Period
In the year-to-date period, FAAR achieves a 14.32% return, which is significantly lower than RLY's 15.29% return. Over the past 10 years, FAAR has underperformed RLY with an annualized return of 4.20%, while RLY has yielded a comparatively higher 8.16% annualized return.
FAAR
- 1D
- -1.43%
- 1M
- -2.21%
- 6M
- 6.89%
- YTD
- 14.32%
- 1Y
- 20.01%
- 3Y*
- 8.41%
- 5Y*
- 7.00%
- 10Y*
- 4.20%
- ALL TIME*
- 4.09%
RLY
- 1D
- -0.42%
- 1M
- 3.64%
- 6M
- 8.40%
- YTD
- 15.29%
- 1Y
- 27.11%
- 3Y*
- 12.93%
- 5Y*
- 10.64%
- 10Y*
- 8.16%
- ALL TIME*
- 4.75%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.39M | $1.09M | $1.71M | |
| $5.13M | $7.99M | $7.88M |
FAAR vs. RLY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 14.32% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
RLY State Street Multi-Asset Real Return ETF | 15.29% | 20.26% | 2.53% | 2.56% | 7.86% | 22.85% | -0.59% | 15.63% | -11.72% | 10.40% |
Correlation
The correlation between FAAR and RLY is 0.52, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.52 |
Correlation (3Y) Balances recent behavior with more history. | 0.38 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.39 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.36 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.35 |
The correlation between FAAR and RLY shifts across timeframes, from 0.35 (all time) to 0.52 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
FAAR vs. RLY — Risk / Return Rank
FAAR
RLY
FAAR vs. RLY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and State Street Multi-Asset Real Return ETF (RLY). 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 | RLY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.99 | ||
| Sortino ratioReturn per unit of downside risk | -1.20 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.47 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.00 | 3.61 | -1.62 |
| Martin ratioReturn relative to average drawdown | 6.00 | 12.56 | -6.56 |
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Drawdowns
FAAR vs. RLY - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum RLY drawdown of -37.75%. Use the drawdown chart below to compare losses from any high point for FAAR and RLY.
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Drawdown Indicators
| FAAR | RLY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -37.75% | +19.72% |
Max Drawdown (1Y)Largest decline over 1 year | -10.08% | -7.54% | -2.54% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -10.08% | -1.46% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | -18.94% | +0.91% |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | -34.17% | +16.14% |
Current DrawdownCurrent decline from peak | -10.08% | -3.15% | -6.93% |
Average DrawdownAverage peak-to-trough decline | -7.83% | -9.40% | +1.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.35% | 2.16% | +1.19% |
Volatility
FAAR vs. RLY - Volatility Comparison
First Trust Alternative Absolute Return Strategy ETF (FAAR) and State Street Multi-Asset Real Return ETF (RLY) have volatilities of 2.52% and 2.61%, 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 | RLY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.52% | 2.61% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 9.47% | 8.06% | +1.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.76% | 10.61% | +2.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.89% | 13.46% | -1.57% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 13.80% | -2.25% |
FAAR vs. RLY - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than RLY's 0.50% expense ratio.
Dividends
FAAR vs. RLY - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 10.01%, more than RLY's 3.07% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 10.01% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% | 0.00% | 0.00% |
RLY State Street Multi-Asset Real Return ETF | 3.07% | 3.24% | 3.31% | 3.71% | 5.66% | 12.15% | 2.16% | 3.45% | 2.76% | 1.85% | 2.07% | 1.80% |
Frequently Asked Questions
FAAR and RLY have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
RLY has higher volatility (2.61%) compared to FAAR (2.52%). In terms of maximum drawdown, FAAR dropped -18.03% vs RLY's -37.75%.
On 10-year performance, RLY leads with 8.16% vs 4.20% for FAAR. On fees, RLY is cheaper at 0.50% 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, RLY has performed better with a 8.16% return vs 4.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
RLY is cheaper with a 0.50% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 10.01%, compared with 3.07% for RLY.
FAAR is categorized as Commodities, while RLY is Global Allocation. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.95% for FAAR and 0.50% for RLY.
RLY currently has the higher Sharpe Ratio (2.57 vs 1.58), 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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