FIAX vs. FAAR
FIAX (Nicholas Fixed Income Alternative ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - FIAX is a Nontraditional Bonds fund actively managed by Nicholas, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, FIAX returned 3.29%/yr vs 10.91%/yr for FAAR. At a correlation of -0.01, they often move in opposite directions. FIAX charges 1.04%/yr vs 0.95%/yr for FAAR.
Performance
FIAX vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, FIAX achieves a 1.15% return, which is significantly lower than FAAR's 20.23% return.
FIAX
- 1D
- -0.34%
- 1M
- 0.36%
- YTD
- 1.15%
- 6M
- 1.00%
- 1Y
- 4.63%
- 3Y*
- 3.29%
- 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%
FIAX vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
FIAX Nicholas Fixed Income Alternative ETF | 1.15% | 2.33% | 4.67% | 3.44% | -0.37% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 2.23% |
Correlation
The correlation between FIAX and FAAR is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.17 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Nov 30, 2022 | -0.01 |
The correlation between FIAX and FAAR shifts across timeframes, from -0.17 (1 year) to -0.01 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
FIAX vs. FAAR — Risk / Return Rank
FIAX
FAAR
FIAX vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Nicholas Fixed Income Alternative ETF (FIAX) 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.
| FIAX | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.90 | ||
| Sortino ratioReturn per unit of downside risk | -1.23 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.35 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.94 | 4.75 | -2.81 |
| Martin ratioReturn relative to average drawdown | 7.05 | 14.70 | -7.65 |
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Drawdowns
FIAX vs. FAAR - Drawdown Comparison
The maximum FIAX drawdown since its inception was -6.26%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for FIAX and FAAR.
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Drawdown Indicators
| FIAX | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.26% | -18.03% | +11.77% |
Max Drawdown (1Y)Largest decline over 1 year | -2.40% | -5.68% | +3.28% |
Max Drawdown (3Y)Largest decline over 3 years | -6.26% | -11.54% | +5.28% |
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 | -0.46% | -5.43% | +4.97% |
Average DrawdownAverage peak-to-trough decline | -0.85% | -7.82% | +6.97% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.66% | 1.89% | -1.23% |
Volatility
FIAX vs. FAAR - Volatility Comparison
The current volatility for Nicholas Fixed Income Alternative ETF (FIAX) is 0.81%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.47%. This indicates that FIAX experiences smaller price fluctuations and is considered to be less risky than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FIAX | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.81% | 2.47% | -1.66% |
Volatility (6M)Calculated over the trailing 6-month period | 3.41% | 9.68% | -6.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.15% | 13.37% | -9.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.03% | 12.95% | -8.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.03% | 11.53% | -7.50% |
FIAX vs. FAAR - Expense Ratio Comparison
FIAX has a 1.04% expense ratio, which is higher than FAAR's 0.95% expense ratio.
Dividends
FIAX vs. FAAR - Dividend Comparison
FIAX's dividend yield for the trailing twelve months is around 8.23%, less 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% |
FIAX Nicholas Fixed Income Alternative ETF | 8.23% | 8.17% | 8.11% | 4.81% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FIAX and FAAR have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.47%) compared to FIAX (0.81%). In terms of maximum drawdown, FIAX dropped -6.26% vs FAAR's -18.03%.
On 3-year performance, FAAR leads with 10.91% vs 3.29% for FIAX. On fees, FAAR is cheaper at 0.95% per year. On volatility, FIAX has been the lower-risk option at 0.81%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, FAAR has performed better with a 10.91% return vs 3.29%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAAR is cheaper with a 0.95% expense ratio, compared with 1.04% for FIAX.
FAAR has the higher dividend yield at 9.57%, compared with 8.23% for FIAX.
FIAX is categorized as Nontraditional Bonds, while FAAR is Commodities. They also come from different issuers: Nicholas and First Trust. Their fees differ too: 1.04% for FIAX and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 1.12), 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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