FAAR vs. USE
FAAR (First Trust Alternative Absolute Return Strategy ETF) and USE (USCF Energy Commodity Strategy Absolute Return Fund) are both Commodities funds. Both are actively managed. Over the past 3 years, FAAR returned 8.41%/yr vs 9.33%/yr for USE. Their 0.51 correlation means they have sometimes moved together and sometimes differently. FAAR charges 0.95%/yr vs 0.79%/yr for USE.
Performance
FAAR vs. USE - 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 USE's 36.22% 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%
USE
- 1D
- -3.71%
- 1M
- 21.36%
- 6M
- 44.67%
- YTD
- 36.22%
- 1Y
- 11.10%
- 3Y*
- 9.33%
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 14.60%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $1.39M | $1.09M | $1.71M | |
| $689.79K | $334.22K | $152.34K |
FAAR vs. USE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 14.32% | 8.07% | 5.97% | -3.01% |
USE USCF Energy Commodity Strategy Absolute Return Fund | 36.22% | -14.97% | 22.58% | 9.68% |
Correlation
The correlation between FAAR and USE 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. | 0.54 |
Correlation (All Time) Calculated using the full available price history since May 4, 2023 | 0.51 |
The correlation between FAAR and USE has been stable across timeframes, ranging from 0.51 to 0.54 - a consistent structural relationship.
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Return for Risk
FAAR vs. USE — Risk / Return Rank
FAAR
USE
FAAR vs. USE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and USCF Energy Commodity Strategy Absolute Return Fund (USE). 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 | USE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.26 | ||
| Sortino ratioReturn per unit of downside risk | +1.60 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.08 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 2.00 | 0.40 | +1.60 |
| Martin ratioReturn relative to average drawdown | 6.00 | 0.74 | +5.25 |
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Drawdowns
FAAR vs. USE - Drawdown Comparison
The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum USE drawdown of -28.17%. Use the drawdown chart below to compare losses from any high point for FAAR and USE.
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Drawdown Indicators
| FAAR | USE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.03% | -28.17% | +10.14% |
Max Drawdown (1Y)Largest decline over 1 year | -10.08% | -28.17% | +18.09% |
Max Drawdown (3Y)Largest decline over 3 years | -11.54% | -28.17% | +16.63% |
Max Drawdown (5Y)Largest decline over 5 years | -18.03% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -18.03% | — | — |
Current DrawdownCurrent decline from peak | -10.08% | -12.46% | +2.38% |
Average DrawdownAverage peak-to-trough decline | -7.83% | -8.40% | +0.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.35% | 14.94% | -11.59% |
Volatility
FAAR vs. USE - Volatility Comparison
The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.52%, while USCF Energy Commodity Strategy Absolute Return Fund (USE) has a volatility of 15.88%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than USE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FAAR | USE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.52% | 15.88% | -13.36% |
Volatility (6M)Calculated over the trailing 6-month period | 9.47% | 31.16% | -21.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.76% | 35.00% | -22.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.89% | 28.60% | -16.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.55% | 28.60% | -17.05% |
FAAR vs. USE - Expense Ratio Comparison
FAAR has a 0.95% expense ratio, which is higher than USE's 0.79% expense ratio.
Dividends
FAAR vs. USE - Dividend Comparison
FAAR's dividend yield for the trailing twelve months is around 10.01%, more than USE's 2.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
USE USCF Energy Commodity Strategy Absolute Return Fund | 2.25% | 3.06% | 38.65% | 4.83% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FAAR and USE 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.
USE has higher volatility (15.88%) compared to FAAR (2.52%). In terms of maximum drawdown, FAAR dropped -18.03% vs USE's -28.17%.
On 3-year performance, USE leads with 9.33% vs 8.41% for FAAR. On fees, USE is cheaper at 0.79% per year. On volatility, FAAR has been the lower-risk option at 2.52%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, USE has performed better with a 9.33% return vs 8.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USE is cheaper with a 0.79% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 10.01%, compared with 2.25% for USE.
They also come from different issuers: First Trust and USCF. Their fees differ too: 0.95% for FAAR and 0.79% for USE.
FAAR currently has the higher Sharpe Ratio (1.58 vs 0.32), 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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