FARX vs. FGSM

Last updated Jun 3, 2026

FARX (Frontier Asset Absolute Return ETF) and FGSM (Frontier Asset Global Small Cap Equity ETF) are both exchange-traded funds - FARX is a Multistrategy fund actively managed by Frontier, while FGSM is a Global Equities fund actively managed by Frontier. Both are actively managed. Over the past year, FARX returned 20.17% vs 34.02% for FGSM. A 0.54 correlation means they provide meaningful diversification when combined. FARX charges 1.00%/yr vs 0.90%/yr for FGSM.

Performance

FARX vs. FGSM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Frontier Asset Absolute Return ETF (FARX) and Frontier Asset Global Small Cap Equity ETF (FGSM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FARX achieves a 9.75% return, which is significantly lower than FGSM's 14.80% return.

FARX

• 1D: 0.14%
• 1M: 1.41%
• YTD: 9.75%
• 6M: 11.09%
• 1Y: 20.17%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FGSM

• 1D: 0.59%
• 1M: 2.70%
• YTD: 14.80%
• 6M: 16.77%
• 1Y: 34.02%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FARX vs. FGSM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FARX Frontier Asset Absolute Return ETF	9.75%	10.61%	0.35%
FGSM Frontier Asset Global Small Cap Equity ETF	14.80%	21.33%	0.24%

Correlation

The correlation between FARX and FGSM is 0.57, 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	0.57
Correlation (All Time) Calculated using the full available price history since Dec 23, 2024	0.54

The correlation between FARX and FGSM has been stable across timeframes, ranging from 0.54 to 0.57 - a consistent structural relationship.

Return for Risk

FARX vs. FGSM — Risk / Return Rank

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

FARX

FARX Risk / Return Rank: 90
FARX Sharpe Ratio Rank: 86
FARX Sortino Ratio Rank: 86
FARX Omega Ratio Rank: 90
FARX Calmar Ratio Rank: 94
FARX Martin Ratio Rank: 93

FGSM

FGSM Risk / Return Rank: 69
FGSM Sharpe Ratio Rank: 68
FGSM Sortino Ratio Rank: 70
FGSM Omega Ratio Rank: 66
FGSM Calmar Ratio Rank: 69
FGSM Martin Ratio Rank: 72

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.

FARX vs. FGSM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Frontier Asset Absolute Return ETF (FARX) and Frontier Asset Global Small Cap Equity ETF (FGSM). 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.

	FARX	FGSM	Difference
Sharpe ratio Return per unit of total volatility	2.91	2.31	+0.60
Sortino ratio Return per unit of downside risk	3.97	3.26	+0.71
Omega ratio Gain probability vs. loss probability	1.59	1.41	+0.18
Calmar ratio Return relative to maximum drawdown	7.46	3.50	+3.96
Martin ratio Return relative to average drawdown	25.72	13.64	+12.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FARX vs. FGSM - Sharpe Ratio Comparison

The current FARX Sharpe Ratio is 2.91, which is comparable to the FGSM Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of FARX and FGSM, 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

	FARX	FGSM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.91	2.31	+0.60
Sharpe Ratio (All Time) Calculated using the full available price history	2.14	1.48	+0.66

Drawdowns

FARX vs. FGSM - Drawdown Comparison

The maximum FARX drawdown since its inception was -5.83%, smaller than the maximum FGSM drawdown of -17.72%. Use the drawdown chart below to compare losses from any high point for FARX and FGSM.

Drawdown Indicators

	FARX	FGSM	Difference
Max Drawdown Largest peak-to-trough decline	-5.83%	-17.72%	+11.89%
Max Drawdown (1Y) Largest decline over 1 year	-2.80%	-9.84%	+7.04%
Current Drawdown Current decline from peak	-0.17%	-0.10%	-0.07%
Average Drawdown Average peak-to-trough decline	-1.02%	-2.22%	+1.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.81%	2.53%	-1.72%

Volatility

FARX vs. FGSM - Volatility Comparison

The current volatility for Frontier Asset Absolute Return ETF (FARX) is 1.40%, while Frontier Asset Global Small Cap Equity ETF (FGSM) has a volatility of 4.46%. This indicates that FARX experiences smaller price fluctuations and is considered to be less risky than FGSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FARX	FGSM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.40%	4.46%	-3.06%
Volatility (6M) Calculated over the trailing 6-month period	5.50%	11.01%	-5.51%
Volatility (1Y) Calculated over the trailing 1-year period	6.98%	14.78%	-7.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.95%	17.82%	-10.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.95%	17.82%	-10.87%

FARX vs. FGSM - Expense Ratio Comparison

FARX has a 1.00% expense ratio, which is higher than FGSM's 0.90% expense ratio.

Dividends

FARX vs. FGSM - Dividend Comparison

FARX's dividend yield for the trailing twelve months is around 2.88%, more than FGSM's 1.35% yield.

Position	TTM	2025	2024
FARX Frontier Asset Absolute Return ETF	2.88%	3.25%	0.19%
FGSM Frontier Asset Global Small Cap Equity ETF	1.35%	1.56%	0.00%

Frequently Asked Questions

Can I hold both FARX and FGSM in my portfolio?

FARX and FGSM have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FARX or FGSM?

FGSM has higher volatility (4.46%) compared to FARX (1.40%). In terms of maximum drawdown, FARX dropped -5.83% vs FGSM's -17.72%.

Which ETF is better, FARX or FGSM?

On 1-year performance, FGSM leads with 34.02% vs 20.17% for FARX. On fees, FGSM is cheaper at 0.90% per year. On volatility, FARX has been the lower-risk option at 1.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FARX or FGSM?

Over the 1-year period, FGSM has performed better with a 34.02% return vs 20.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FARX or FGSM?

FGSM is cheaper with a 0.90% expense ratio, compared with 1.00% for FARX.

Which ETF pays a higher dividend yield, FARX or FGSM?

FARX has the higher dividend yield at 2.88%, compared with 1.35% for FGSM.

What is the main difference between FARX and FGSM?

FARX is categorized as Multistrategy, while FGSM is Global Equities. Their fees differ too: 1.00% for FARX and 0.90% for FGSM.

Which has better risk-adjusted returns?

FARX currently has the higher Sharpe Ratio (2.91 vs 2.31), 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.