HECA vs. FARX

Last updated Jul 15, 2026

HECA (Hedgeye Capital Allocation ETF) and FARX (Frontier Asset Absolute Return ETF) are both exchange-traded funds - HECA is a Global Allocation fund actively managed by Hedgeye, while FARX is a Multistrategy fund actively managed by Frontier. Both are actively managed. Over the past year, HECA returned 11.08% vs 16.84% for FARX. A 0.58 correlation means they provide meaningful diversification when combined. HECA charges 1.02%/yr vs 1.00%/yr for FARX.

Performance

HECA vs. FARX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Hedgeye Capital Allocation ETF (HECA) and Frontier Asset Absolute Return ETF (FARX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HECA achieves a -1.05% return, which is significantly lower than FARX's 8.71% return.

HECA

• 1D: 0.37%
• 1M: 0.59%
• 6M: -4.87%
• YTD: -1.05%
• 1Y: 11.08%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FARX

• 1D: 0.30%
• 1M: 0.66%
• 6M: 6.18%
• YTD: 8.71%
• 1Y: 16.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

HECA vs. FARX - Yearly Performance Comparison

	2026 (YTD)	2025
HECA Hedgeye Capital Allocation ETF	-1.05%	12.83%
FARX Frontier Asset Absolute Return ETF	8.71%	8.19%

Correlation

The correlation between HECA and FARX is 0.58, 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	0.58
Correlation (All Time) Calculated using the full available price history since Jul 1, 2025	0.58

The correlation between HECA and FARX has been stable across timeframes, ranging from 0.58 to 0.58 - a consistent structural relationship.

Return for Risk

HECA vs. FARX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HECA

HECA Risk / Return Rank: 26
HECA Sharpe Ratio Rank: 30
HECA Sortino Ratio Rank: 29
HECA Omega Ratio Rank: 29
HECA Calmar Ratio Rank: 22
HECA Martin Ratio Rank: 20

FARX

FARX Risk / Return Rank: 90
FARX Sharpe Ratio Rank: 88
FARX Sortino Ratio Rank: 86
FARX Omega Ratio Rank: 89
FARX Calmar Ratio Rank: 94
FARX Martin Ratio Rank: 91

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HECA vs. FARX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Hedgeye Capital Allocation ETF (HECA) and Frontier Asset Absolute Return ETF (FARX). 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.

	HECA	FARX	Difference
Sharpe ratio: Return per unit of total volatility	0.89	2.29	-1.39
Sortino ratio: Return per unit of downside risk	1.32	3.10	-1.78
Omega ratio: Gain probability vs. loss probability	1.17	1.44	-0.27
Calmar ratio: Return relative to maximum drawdown	0.87	5.66	-4.79
Martin ratio: Return relative to average drawdown	1.85	16.29	-14.44

HECA vs. FARX - Sharpe Ratio Comparison

The current HECA Sharpe Ratio is 0.89, which is lower than the FARX Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of HECA and FARX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HECA vs. FARX - Drawdown Comparison

The maximum HECA drawdown since its inception was -12.82%, which is greater than FARX's maximum drawdown of -5.83%. Use the drawdown chart below to compare losses from any high point for HECA and FARX.

Drawdown Indicators

	HECA	FARX	Difference
Max Drawdown Largest peak-to-trough decline	-12.82%	-5.83%	-6.99%
Max Drawdown (1Y) Largest decline over 1 year	-12.82%	-2.99%	-9.83%
Current Drawdown Current decline from peak	-11.23%	-1.12%	-10.11%
Average Drawdown Average peak-to-trough decline	-4.03%	-1.08%	-2.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.01%	1.04%	+4.97%

Volatility

HECA vs. FARX - Volatility Comparison

The current volatility for Hedgeye Capital Allocation ETF (HECA) is 1.57%, while Frontier Asset Absolute Return ETF (FARX) has a volatility of 1.97%. This indicates that HECA experiences smaller price fluctuations and is considered to be less risky than FARX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HECA	FARX	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.57%	1.97%	-0.40%
Volatility (6M) Calculated over the trailing 6-month period	8.52%	5.70%	+2.82%
Volatility (1Y) Calculated over the trailing 1-year period	12.44%	7.40%	+5.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.28%	7.04%	+5.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.28%	7.04%	+5.24%

HECA vs. FARX - Expense Ratio Comparison

HECA has a 1.02% expense ratio, which is higher than FARX's 1.00% expense ratio.

Dividends

HECA vs. FARX - Dividend Comparison

HECA's dividend yield for the trailing twelve months is around 2.04%, less than FARX's 2.87% yield.

Position	TTM	2025	2024
FARX Frontier Asset Absolute Return ETF	2.87%	3.25%	0.19%
HECA Hedgeye Capital Allocation ETF	2.04%	2.02%	0.00%

Frequently Asked Questions

Can I hold both HECA and FARX in my portfolio?

HECA and FARX have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HECA or FARX?

FARX has higher volatility (1.97%) compared to HECA (1.57%). In terms of maximum drawdown, HECA dropped -12.82% vs FARX's -5.83%.

Which ETF is better, HECA or FARX?

On 1-year performance, FARX leads with 16.84% vs 11.08% for HECA. On fees, FARX is cheaper at 1.00% per year. On volatility, HECA has been the lower-risk option at 1.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HECA or FARX?

Over the 1-year period, FARX has performed better with a 16.84% return vs 11.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HECA or FARX?

FARX is cheaper with a 1.00% expense ratio, compared with 1.02% for HECA.

Which ETF pays a higher dividend yield, HECA or FARX?

FARX has the higher dividend yield at 2.87%, compared with 2.04% for HECA.

What is the main difference between HECA and FARX?

HECA is categorized as Global Allocation, while FARX is Multistrategy. They also come from different issuers: Hedgeye and Frontier. Their fees differ too: 1.02% for HECA and 1.00% for FARX.

Which has better risk-adjusted returns?

FARX currently has the higher Sharpe Ratio (2.29 vs 0.89), 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.