FBDC vs. FAAR
FBDC (FT Confluence BDC & Specialty Finance Income ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - FBDC is a Financials Equities fund actively managed by First Trust, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. At a correlation of -0.06, they often move in opposite directions. FBDC charges 1.35%/yr vs 0.95%/yr for FAAR.
Performance
FBDC vs. FAAR - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, FBDC achieves a -10.66% return, which is significantly lower than FAAR's 20.23% return.
FBDC
- 1D
- -1.16%
- 1M
- -1.54%
- YTD
- -10.66%
- 6M
- -9.44%
- 1Y
- —
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
FAAR
- 1D
- -0.05%
- 1M
- -4.34%
- YTD
- 20.23%
- 6M
- 19.92%
- 1Y
- 26.86%
- 3Y*
- 10.91%
- 5Y*
- 7.89%
- 10Y*
- 4.79%
FBDC vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
FBDC FT Confluence BDC & Specialty Finance Income ETF | -10.66% | -2.66% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.68% |
Correlation
The correlation between FBDC and FAAR is -0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (All Time) Calculated using the full available price history since Jun 30, 2025 | -0.06 |
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
FBDC vs. FAAR — Risk / Return Rank
FBDC
Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.
FAAR
FBDC vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FT Confluence BDC & Specialty Finance Income ETF (FBDC) and First Trust Alternative Absolute Return Strategy ETF (FAAR). 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.
| FBDC | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | — | — | |
| Sortino ratioReturn per unit of downside risk | — | — | |
| Omega ratioGain probability vs. loss probability | — | 1.35 | — |
| Calmar ratioReturn relative to maximum drawdown | — | 4.75 | — |
| Martin ratioReturn relative to average drawdown | — | 14.70 | — |
Loading charts...
Drawdowns
FBDC vs. FAAR - Drawdown Comparison
The maximum FBDC drawdown since its inception was -20.60%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for FBDC and FAAR.
Loading charts...
Drawdown Indicators
| FBDC | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.60% | -18.03% | -2.57% |
Max Drawdown (1Y)Largest decline over 1 year | — | -5.68% | — |
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 DrawdownCurrent decline from peak | -18.29% | -5.43% | -12.86% |
Average DrawdownAverage peak-to-trough decline | -10.41% | -7.82% | -2.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | — | 1.89% | — |
Volatility
FBDC vs. FAAR - Volatility Comparison
Loading charts...
Volatility by Period
| FBDC | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | — | 2.47% | — |
Volatility (6M)Calculated over the trailing 6-month period | — | 9.68% | — |
Volatility (1Y)Calculated over the trailing 1-year period | 18.03% | 13.37% | +4.66% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.03% | 12.95% | +5.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.03% | 11.53% | +6.50% |
FBDC vs. FAAR - Expense Ratio Comparison
FBDC has a 1.35% expense ratio, which is higher than FAAR's 0.95% expense ratio.
Dividends
FBDC vs. FAAR - Dividend Comparison
FBDC's dividend yield for the trailing twelve months is around 11.67%, more than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.57% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
FBDC FT Confluence BDC & Specialty Finance Income ETF | 11.67% | 5.41% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FBDC and FAAR have a correlation of -0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
On fees, FAAR is cheaper at 0.95% per year. The better choice depends on whether you care most about return, fees, risk, or income.
FAAR is cheaper with a 0.95% expense ratio, compared with 1.35% for FBDC.
FBDC has the higher dividend yield at 11.67%, compared with 9.57% for FAAR.
FBDC is categorized as Financials Equities, while FAAR is Commodities. Their fees differ too: 1.35% for FBDC and 0.95% for FAAR.
Find the right allocation for FBDC and FAAR
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer