FSIG vs. FAAR
FSIG (First Trust Limited Duration Investment Grade Corporate ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - FSIG is a Short-Term Bond fund actively managed by First Trust, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, FSIG returned 5.18%/yr vs 10.91%/yr for FAAR. At a correlation of -0.06, they often move in opposite directions. FSIG charges 0.55%/yr vs 0.95%/yr for FAAR.
Performance
FSIG vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, FSIG achieves a 0.38% return, which is significantly lower than FAAR's 20.23% return.
FSIG
- 1D
- -0.05%
- 1M
- 0.27%
- YTD
- 0.38%
- 6M
- 0.54%
- 1Y
- 3.77%
- 3Y*
- 5.18%
- 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%
FSIG vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
FSIG First Trust Limited Duration Investment Grade Corporate ETF | 0.38% | 6.66% | 4.22% | 6.22% | -4.37% | -0.08% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | -1.32% |
Correlation
The correlation between FSIG and FAAR is -0.19, 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 | -0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.08 |
Correlation (All Time) Calculated using the full available price history since Nov 18, 2021 | -0.06 |
The correlation between FSIG and FAAR shifts across timeframes, from -0.19 (1 year) to -0.06 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
FSIG vs. FAAR — Risk / Return Rank
FSIG
FAAR
FSIG vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Limited Duration Investment Grade Corporate ETF (FSIG) 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.
| FSIG | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.34 | ||
| Sortino ratioReturn per unit of downside risk | -0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.35 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.44 | 4.75 | -2.31 |
| Martin ratioReturn relative to average drawdown | 9.98 | 14.70 | -4.71 |
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Drawdowns
FSIG vs. FAAR - Drawdown Comparison
The maximum FSIG drawdown since its inception was -6.93%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for FSIG and FAAR.
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Drawdown Indicators
| FSIG | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -6.93% | -18.03% | +11.10% |
Max Drawdown (1Y)Largest decline over 1 year | -1.55% | -5.68% | +4.13% |
Max Drawdown (3Y)Largest decline over 3 years | -1.55% | -11.54% | +9.99% |
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 | -0.32% | -5.43% | +5.11% |
Average DrawdownAverage peak-to-trough decline | -1.67% | -7.82% | +6.15% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.38% | 1.89% | -1.51% |
Volatility
FSIG vs. FAAR - Volatility Comparison
The current volatility for First Trust Limited Duration Investment Grade Corporate ETF (FSIG) is 0.67%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.47%. This indicates that FSIG 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
| FSIG | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.67% | 2.47% | -1.80% |
Volatility (6M)Calculated over the trailing 6-month period | 1.87% | 9.68% | -7.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.25% | 13.37% | -11.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 2.96% | 12.95% | -9.99% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 2.96% | 11.53% | -8.57% |
FSIG vs. FAAR - Expense Ratio Comparison
FSIG has a 0.55% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
FSIG vs. FAAR - Dividend Comparison
FSIG's dividend yield for the trailing twelve months is around 4.81%, 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% |
FSIG First Trust Limited Duration Investment Grade Corporate ETF | 4.81% | 4.73% | 4.61% | 4.42% | 2.48% | 0.12% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
FSIG and FAAR have a correlation of -0.19, 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 FSIG (0.67%). In terms of maximum drawdown, FSIG dropped -6.93% vs FAAR's -18.03%.
On 3-year performance, FAAR leads with 10.91% vs 5.18% for FSIG. On fees, FSIG is cheaper at 0.55% per year. On volatility, FSIG has been the lower-risk option at 0.67%. 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 5.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FSIG is cheaper with a 0.55% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 4.81% for FSIG.
FSIG is categorized as Short-Term Bond, while FAAR is Commodities. Their fees differ too: 0.55% for FSIG and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 1.68), 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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