FAAR vs. USOI

Last updated Jun 4, 2026

FAAR (First Trust Alternative Absolute Return Strategy ETF) and USOI (Credit Suisse X-Links Crude Oil Shares Covered Call ETN) are both Commodities funds. FAAR is actively managed, while USOI is passively managed. Over the past year, FAAR returned 40.73% vs 49.69% for USOI. A 0.61 correlation means they provide meaningful diversification when combined. FAAR charges 0.95%/yr vs 0.85%/yr for USOI.

Performance

FAAR vs. USOI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Alternative Absolute Return Strategy ETF (FAAR) and Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FAAR achieves a 25.73% return, which is significantly lower than USOI's 50.53% 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%

USOI

• 1D: 1.94%
• 1M: 2.54%
• YTD: 50.53%
• 6M: 48.65%
• 1Y: 49.69%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FAAR vs. USOI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FAAR First Trust Alternative Absolute Return Strategy ETF	25.73%	8.07%	2.04%
USOI Credit Suisse X-Links Crude Oil Shares Covered Call ETN	50.53%	-8.78%	6.94%

Correlation

The correlation between FAAR and USOI is 0.66, 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	0.66
Correlation (All Time) Calculated using the full available price history since Jun 4, 2024	0.61

The correlation between FAAR and USOI has been stable across timeframes, ranging from 0.61 to 0.66 - a consistent structural relationship.

Return for Risk

FAAR vs. USOI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FAAR

FAAR Risk / Return Rank: 90
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 84
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 92

USOI

USOI Risk / Return Rank: 64
USOI Sharpe Ratio Rank: 66
USOI Sortino Ratio Rank: 60
USOI Omega Ratio Rank: 60
USOI Calmar Ratio Rank: 80
USOI Martin Ratio Rank: 55

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FAAR vs. USOI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Alternative Absolute Return Strategy ETF (FAAR) and Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI). 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	USOI	Difference
Sharpe ratio: Return per unit of total volatility	3.04	2.23	+0.80
Sortino ratio: Return per unit of downside risk	4.23	2.86	+1.37
Omega ratio: Gain probability vs. loss probability	1.52	1.37	+0.15
Calmar ratio: Return relative to maximum drawdown	8.44	4.20	+4.25
Martin ratio: Return relative to average drawdown	23.64	9.74	+13.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FAAR vs. USOI - Sharpe Ratio Comparison

The current FAAR Sharpe Ratio is 3.04, which is higher than the USOI Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of FAAR and USOI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FAAR	USOI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.04	2.23	+0.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.94	-0.50

Drawdowns

FAAR vs. USOI - Drawdown Comparison

The maximum FAAR drawdown since its inception was -18.03%, smaller than the maximum USOI drawdown of -19.49%. Use the drawdown chart below to compare losses from any high point for FAAR and USOI.

Drawdown Indicators

	FAAR	USOI	Difference
Max Drawdown Largest peak-to-trough decline	-18.03%	-19.49%	+1.46%
Max Drawdown (1Y) Largest decline over 1 year	-4.85%	-11.90%	+7.05%
Max Drawdown (3Y) Largest decline over 3 years	-11.54%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-18.03%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-18.03%	—	—
Current Drawdown Current decline from peak	-1.11%	-3.08%	+1.97%
Average Drawdown Average peak-to-trough decline	-7.85%	-7.21%	-0.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.73%	5.12%	-3.39%

Volatility

FAAR vs. USOI - Volatility Comparison

The current volatility for First Trust Alternative Absolute Return Strategy ETF (FAAR) is 2.44%, while Credit Suisse X-Links Crude Oil Shares Covered Call ETN (USOI) has a volatility of 10.14%. This indicates that FAAR experiences smaller price fluctuations and is considered to be less risky than USOI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FAAR	USOI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.44%	10.14%	-7.70%
Volatility (6M) Calculated over the trailing 6-month period	9.72%	18.25%	-8.53%
Volatility (1Y) Calculated over the trailing 1-year period	13.48%	22.35%	-8.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.02%	22.59%	-9.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.51%	22.59%	-11.08%

FAAR vs. USOI - Expense Ratio Comparison

FAAR has a 0.95% expense ratio, which is higher than USOI's 0.85% expense ratio.

Dividends

FAAR vs. USOI - Dividend Comparison

FAAR's dividend yield for the trailing twelve months is around 9.15%, less than USOI's 36.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
USOI Credit Suisse X-Links Crude Oil Shares Covered Call ETN	36.88%	27.21%	12.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FAAR and USOI in my portfolio?

FAAR and USOI have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FAAR or USOI?

USOI has higher volatility (10.14%) compared to FAAR (2.44%). In terms of maximum drawdown, FAAR dropped -18.03% vs USOI's -19.49%.

Which ETF is better, FAAR or USOI?

On 1-year performance, USOI leads with 49.69% vs 40.73% for FAAR. On fees, USOI is cheaper at 0.85% 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.

Which ETF has performed better, FAAR or USOI?

Over the 1-year period, USOI has performed better with a 49.69% return vs 40.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FAAR or USOI?

USOI is cheaper with a 0.85% expense ratio, compared with 0.95% for FAAR.

Which ETF pays a higher dividend yield, FAAR or USOI?

USOI has the higher dividend yield at 36.88%, compared with 9.15% for FAAR.

What is the main difference between FAAR and USOI?

They also come from different issuers: First Trust and Credit Suisse. Their fees differ too: 0.95% for FAAR and 0.85% for USOI.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (3.04 vs 2.23), 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.