GSG vs. FAAR
GSG (iShares S&P GSCI Commodity-Indexed Trust) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both Commodities funds. GSG is passively managed, while FAAR is actively managed. Over the past 10 years, GSG returned 7.69%/yr vs 5.17%/yr for FAAR. At a 0.46 correlation, their price movements are largely independent. GSG charges 0.75%/yr vs 0.95%/yr for FAAR.
Performance
GSG vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, GSG achieves a 42.58% return, which is significantly higher than FAAR's 25.73% return. Over the past 10 years, GSG has outperformed FAAR with an annualized return of 7.69%, while FAAR has yielded a comparatively lower 5.17% annualized return.
GSG
- 1D
- 0.77%
- 1M
- -4.83%
- YTD
- 42.58%
- 6M
- 41.06%
- 1Y
- 51.52%
- 3Y*
- 19.31%
- 5Y*
- 15.74%
- 10Y*
- 7.69%
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%
GSG vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
GSG iShares S&P GSCI Commodity-Indexed Trust | 42.58% | 5.93% | 8.52% | -5.51% | 24.08% | 38.77% | -23.94% | 15.62% | -13.88% | 3.89% |
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 GSG and FAAR is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.46 |
Correlation (All Time) Calculated using the full available price history since May 24, 2016 | 0.46 |
Over the past year, GSG and FAAR have become more correlated (0.79) than their long-term average of 0.46, meaning their price movements have been converging.
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Return for Risk
GSG vs. FAAR — Risk / Return Rank
GSG
FAAR
GSG vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares S&P GSCI Commodity-Indexed Trust (GSG) 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.
| GSG | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.78 | ||
| Sortino ratioReturn per unit of downside risk | -1.35 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.52 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 5.47 | 8.44 | -2.97 |
| Martin ratioReturn relative to average drawdown | 14.39 | 23.64 | -9.25 |
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
| GSG | FAAR | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.26 | 3.04 | -0.78 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.70 | 0.62 | +0.08 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.35 | 0.45 | -0.10 |
Sharpe Ratio (All Time)Calculated using the full available price history | -0.09 | 0.45 | -0.53 |
Drawdowns
GSG vs. FAAR - Drawdown Comparison
The maximum GSG drawdown since its inception was -89.62%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for GSG and FAAR.
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Drawdown Indicators
| GSG | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -89.62% | -18.03% | -71.59% |
Max Drawdown (1Y)Largest decline over 1 year | -9.46% | -4.85% | -4.61% |
Max Drawdown (3Y)Largest decline over 3 years | -14.94% | -11.54% | -3.40% |
Max Drawdown (5Y)Largest decline over 5 years | -29.12% | -18.03% | -11.09% |
Max Drawdown (10Y)Largest decline over 10 years | -57.64% | -18.03% | -39.61% |
Current DrawdownCurrent decline from peak | -56.95% | -1.11% | -55.84% |
Average DrawdownAverage peak-to-trough decline | -63.71% | -7.85% | -55.86% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.59% | 1.73% | +1.86% |
Volatility
GSG vs. FAAR - Volatility Comparison
iShares S&P GSCI Commodity-Indexed Trust (GSG) has a higher volatility of 7.65% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.44%. This indicates that GSG'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
| GSG | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.65% | 2.44% | +5.21% |
Volatility (6M)Calculated over the trailing 6-month period | 20.42% | 9.72% | +10.70% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.95% | 13.48% | +9.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.61% | 13.02% | +9.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.03% | 11.51% | +10.52% |
GSG vs. FAAR - Expense Ratio Comparison
GSG has a 0.75% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
GSG vs. FAAR - Dividend Comparison
GSG has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.15%.
| 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% |
GSG iShares S&P GSCI Commodity-Indexed Trust | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
GSG and FAAR have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GSG has higher volatility (7.65%) compared to FAAR (2.44%). In terms of maximum drawdown, GSG dropped -89.62% vs FAAR's -18.03%.
On 10-year performance, GSG leads with 7.69% vs 5.17% for FAAR. On fees, GSG is cheaper at 0.75% per year. 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, GSG has performed better with a 7.69% return vs 5.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
GSG is cheaper with a 0.75% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.15%, compared with 0.00% for GSG.
They also come from different issuers: iShares and First Trust. Their fees differ too: 0.75% for GSG and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (3.04 vs 2.26), 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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