FGSI vs. FAAR

Last updated Jun 4, 2026

FGSI (First Trust Vest Growth Strength & Target Income ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - FGSI is a Derivative Income 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 -0.01, they often move in opposite directions. FGSI charges 0.85%/yr vs 0.95%/yr for FAAR.

Performance

FGSI vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Vest Growth Strength & Target Income ETF (FGSI) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FGSI achieves a 4.99% return, which is significantly lower than FAAR's 25.73% return.

FGSI

• 1D: -0.54%
• 1M: 3.18%
• YTD: 4.99%
• 6M: 5.04%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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%

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

FGSI vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025
FGSI First Trust Vest Growth Strength & Target Income ETF	4.99%	4.53%
FAAR First Trust Alternative Absolute Return Strategy ETF	25.73%	7.51%

Correlation

The correlation between FGSI and FAAR is -0.01, 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 27, 2025	-0.01

FGSI vs. FAAR - Sectors Allocation Comparison

Sectors	FGSI	FAAR
Technology	30.5%	-
Healthcare	17.6%	-
Financial Services	16.2%	100.0%
Consumer Cyclical	13.6%	-
Industrials	12.4%	-
Communication Services	5.7%	-
Energy	4.8%	-
Consumer Defensive	2.0%	-
Basic Materials	1.9%	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FGSI vs. FAAR — 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

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.

FGSI vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Vest Growth Strength & Target Income ETF (FGSI) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	FGSI	FAAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	3.04	—
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	0.85	0.45	+0.40

Drawdowns

FGSI vs. FAAR - Drawdown Comparison

The maximum FGSI drawdown since its inception was -8.25%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for FGSI and FAAR.

Drawdown Indicators

	FGSI	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-8.25%	-18.03%	+9.78%
Max Drawdown (1Y) Largest decline over 1 year	—	-4.85%	—
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	-1.50%	-1.11%	-0.39%
Average Drawdown Average peak-to-trough decline	-1.91%	-7.85%	+5.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.73%	—

Volatility

Volatility by Period

	FGSI	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.44%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.72%	—
Volatility (1Y) Calculated over the trailing 1-year period	12.43%	13.48%	-1.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.43%	13.02%	-0.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.43%	11.51%	+0.92%

FGSI vs. FAAR - Expense Ratio Comparison

FGSI has a 0.85% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

FGSI vs. FAAR - Dividend Comparison

FGSI's dividend yield for the trailing twelve months is around 7.57%, less than FAAR's 9.15% 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%
FGSI First Trust Vest Growth Strength & Target Income ETF	7.57%	4.20%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FGSI and FAAR in my portfolio?

FGSI and FAAR have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FGSI or FAAR?

On fees, FGSI is cheaper at 0.85% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FGSI or FAAR?

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

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

FAAR has the higher dividend yield at 9.15%, compared with 7.57% for FGSI.

What is the main difference between FGSI and FAAR?

FGSI is categorized as Derivative Income, while FAAR is Commodities. Their fees differ too: 0.85% for FGSI and 0.95% for FAAR.