FTLS vs. FAAR
FTLS (First Trust Long/Short Equity ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - FTLS is a Long-Short fund actively managed by First Trust, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 10 years, FTLS returned 10.02%/yr vs 4.79%/yr for FAAR. At a 0.08 correlation, their price movements are largely independent. FTLS charges 1.60%/yr vs 0.95%/yr for FAAR.
Performance
FTLS vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, FTLS achieves a 5.55% return, which is significantly lower than FAAR's 20.23% return. Over the past 10 years, FTLS has outperformed FAAR with an annualized return of 10.02%, while FAAR has yielded a comparatively lower 4.79% annualized return.
FTLS
- 1D
- 0.48%
- 1M
- 0.28%
- YTD
- 5.55%
- 6M
- 5.16%
- 1Y
- 16.53%
- 3Y*
- 14.35%
- 5Y*
- 10.26%
- 10Y*
- 10.02%
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%
FTLS vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FTLS First Trust Long/Short Equity ETF | 5.55% | 9.09% | 18.80% | 16.94% | -5.56% | 19.65% | 2.56% | 16.16% | -4.81% | 14.41% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between FTLS and FAAR is -0.12, 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 | -0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.06 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.08 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.08 |
The correlation between FTLS and FAAR shifts across timeframes, from -0.12 (1 year) to 0.08 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
FTLS vs. FAAR — Risk / Return Rank
FTLS
FAAR
FTLS vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Long/Short Equity ETF (FTLS) 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.
| FTLS | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.35 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 4.39 | 4.75 | -0.36 |
| Martin ratioReturn relative to average drawdown | 13.59 | 14.70 | -1.10 |
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Drawdowns
FTLS vs. FAAR - Drawdown Comparison
The maximum FTLS drawdown since its inception was -20.54%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for FTLS and FAAR.
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Drawdown Indicators
| FTLS | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.54% | -18.03% | -2.51% |
Max Drawdown (1Y)Largest decline over 1 year | -3.79% | -5.68% | +1.89% |
Max Drawdown (3Y)Largest decline over 3 years | -11.69% | -11.54% | -0.15% |
Max Drawdown (5Y)Largest decline over 5 years | -11.69% | -18.03% | +6.34% |
Max Drawdown (10Y)Largest decline over 10 years | -20.54% | -18.03% | -2.51% |
Current DrawdownCurrent decline from peak | -0.02% | -5.43% | +5.41% |
Average DrawdownAverage peak-to-trough decline | -2.69% | -7.82% | +5.13% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.22% | 1.89% | -0.67% |
Volatility
FTLS vs. FAAR - Volatility Comparison
First Trust Long/Short Equity ETF (FTLS) and First Trust Alternative Absolute Return Strategy ETF (FAAR) have volatilities of 2.41% and 2.47%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FTLS | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.41% | 2.47% | -0.06% |
Volatility (6M)Calculated over the trailing 6-month period | 5.91% | 9.68% | -3.77% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.37% | 13.37% | -5.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.57% | 12.95% | -2.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.30% | 11.53% | -0.23% |
FTLS vs. FAAR - Expense Ratio Comparison
FTLS has a 1.60% expense ratio, which is higher than FAAR's 0.95% expense ratio.
Dividends
FTLS vs. FAAR - Dividend Comparison
FTLS's dividend yield for the trailing twelve months is around 0.90%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% | 0.00% |
FTLS First Trust Long/Short Equity ETF | 0.90% | 1.07% | 1.50% | 1.49% | 0.81% | 0.01% | 0.44% | 0.83% | 0.87% | 0.43% | 1.04% | 0.49% |
Frequently Asked Questions
FTLS and FAAR have a correlation of -0.12, 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 FTLS (2.41%). In terms of maximum drawdown, FTLS dropped -20.54% vs FAAR's -18.03%.
On 10-year performance, FTLS leads with 10.02% vs 4.79% for FAAR. On fees, FAAR is cheaper at 0.95% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FTLS has performed better with a 10.02% return vs 4.79%. 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 1.60% for FTLS.
FAAR has the higher dividend yield at 9.57%, compared with 0.90% for FTLS.
FTLS is categorized as Long-Short, while FAAR is Commodities. Their fees differ too: 1.60% for FTLS and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 1.99), 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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