FTGC vs. FAAR
FTGC (First Trust Global Tactical Commodity Strategy Fund) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both Commodities funds from First Trust. Both are actively managed. Over the past 10 years, FTGC returned 7.77%/yr vs 5.17%/yr for FAAR. At a 0.47 correlation, their price movements are largely independent. Both charge a 0.95% expense ratio.
Performance
FTGC vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, FTGC achieves a 27.15% return, which is significantly higher than FAAR's 25.73% return. Over the past 10 years, FTGC has outperformed FAAR with an annualized return of 7.77%, while FAAR has yielded a comparatively lower 5.17% annualized return.
FTGC
- 1D
- -0.44%
- 1M
- -2.63%
- YTD
- 27.15%
- 6M
- 26.06%
- 1Y
- 41.32%
- 3Y*
- 18.13%
- 5Y*
- 13.08%
- 10Y*
- 7.77%
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%
FTGC vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FTGC First Trust Global Tactical Commodity Strategy Fund | 27.15% | 14.61% | 9.96% | -5.36% | 17.36% | 27.95% | 2.17% | 6.40% | -12.75% | 2.73% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 25.73% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between FTGC and FAAR is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.81 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since May 24, 2016 | 0.47 |
Over the past year, FTGC and FAAR have become more correlated (0.81) than their long-term average of 0.47, meaning their price movements have been converging.
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Return for Risk
FTGC vs. FAAR — Risk / Return Rank
FTGC
FAAR
FTGC vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Global Tactical Commodity Strategy Fund (FTGC) 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.
| FTGC | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.37 | ||
| Sortino ratioReturn per unit of downside risk | -0.80 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.52 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 5.25 | 8.44 | -3.19 |
| Martin ratioReturn relative to average drawdown | 17.39 | 23.64 | -6.25 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| FTGC | FAAR | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.66 | 3.04 | -0.37 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.82 | 0.62 | +0.20 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.53 | 0.45 | +0.08 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.24 | 0.45 | -0.21 |
Drawdowns
FTGC vs. FAAR - Drawdown Comparison
The maximum FTGC drawdown since its inception was -59.47%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for FTGC and FAAR.
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Drawdown Indicators
| FTGC | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -59.47% | -18.03% | -41.44% |
Max Drawdown (1Y)Largest decline over 1 year | -7.91% | -4.85% | -3.06% |
Max Drawdown (3Y)Largest decline over 3 years | -10.39% | -11.54% | +1.15% |
Max Drawdown (5Y)Largest decline over 5 years | -22.64% | -18.03% | -4.61% |
Max Drawdown (10Y)Largest decline over 10 years | -35.91% | -18.03% | -17.88% |
Current DrawdownCurrent decline from peak | -4.65% | -1.11% | -3.54% |
Average DrawdownAverage peak-to-trough decline | -27.42% | -7.85% | -19.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.38% | 1.73% | +0.65% |
Volatility
FTGC vs. FAAR - Volatility Comparison
First Trust Global Tactical Commodity Strategy Fund (FTGC) has a higher volatility of 4.50% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.44%. This indicates that FTGC's price experiences larger fluctuations and is considered to be riskier 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
| FTGC | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.50% | 2.44% | +2.06% |
Volatility (6M)Calculated over the trailing 6-month period | 13.15% | 9.72% | +3.43% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.59% | 13.48% | +2.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.00% | 13.02% | +2.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.71% | 11.51% | +3.20% |
FTGC vs. FAAR - Expense Ratio Comparison
Both FTGC and FAAR have an expense ratio of 0.95%.
Dividends
FTGC vs. FAAR - Dividend Comparison
FTGC's dividend yield for the trailing twelve months is around 15.08%, more 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% |
FTGC First Trust Global Tactical Commodity Strategy Fund | 15.08% | 17.74% | 3.05% | 3.34% | 10.35% | 7.21% | 0.00% | 0.81% | 0.80% | 1.21% |
Frequently Asked Questions
FTGC and FAAR have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FTGC has higher volatility (4.50%) compared to FAAR (2.44%). In terms of maximum drawdown, FTGC dropped -59.47% vs FAAR's -18.03%.
On 10-year performance, FTGC leads with 7.77% vs 5.17% for FAAR. Both ETFs have the same 0.95% expense ratio. On volatility, FAAR has been the lower-risk option at 2.44%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FTGC has performed better with a 7.77% return vs 5.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FTGC and FAAR have the same expense ratio: 0.95% per year.
FTGC has the higher dividend yield at 15.08%, compared with 9.15% for FAAR.
FAAR currently has the higher Sharpe Ratio (3.04 vs 2.66), 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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