HUSV vs. FAAR
HUSV (First Trust Horizon Managed Volatility Domestic ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - HUSV is a Volatility Hedged Equity fund actively managed by First Trust, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 5 years, HUSV returned 5.67%/yr vs 7.89%/yr for FAAR. At a 0.02 correlation, their price movements are largely independent. HUSV charges 0.70%/yr vs 0.95%/yr for FAAR.
Performance
HUSV vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, HUSV achieves a -0.11% return, which is significantly lower than FAAR's 20.23% return.
HUSV
- 1D
- -0.39%
- 1M
- -3.43%
- YTD
- -0.11%
- 6M
- -0.53%
- 1Y
- -0.82%
- 3Y*
- 7.45%
- 5Y*
- 5.67%
- 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%
HUSV vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HUSV First Trust Horizon Managed Volatility Domestic ETF | -0.11% | 4.96% | 12.64% | 3.51% | -6.31% | 26.04% | 5.39% | 26.98% | -1.92% | 16.07% |
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 HUSV and FAAR is -0.11, 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 | -0.11 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.04 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since Aug 25, 2016 | 0.02 |
The correlation between HUSV and FAAR shifts across timeframes, from -0.11 (1 year) to 0.02 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
HUSV vs. FAAR — Risk / Return Rank
HUSV
FAAR
HUSV vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Horizon Managed Volatility Domestic ETF (HUSV) 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.
| HUSV | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.11 | ||
| Sortino ratioReturn per unit of downside risk | -2.95 | ||
| Omega ratioGain probability vs. loss probability | 0.99 | 1.35 | -0.35 |
| Calmar ratioReturn relative to maximum drawdown | -0.12 | 4.75 | -4.87 |
| Martin ratioReturn relative to average drawdown | -0.28 | 14.70 | -14.98 |
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Drawdowns
HUSV vs. FAAR - Drawdown Comparison
The maximum HUSV drawdown since its inception was -35.72%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for HUSV and FAAR.
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Drawdown Indicators
| HUSV | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.72% | -18.03% | -17.69% |
Max Drawdown (1Y)Largest decline over 1 year | -6.78% | -5.68% | -1.10% |
Max Drawdown (3Y)Largest decline over 3 years | -9.35% | -11.54% | +2.19% |
Max Drawdown (5Y)Largest decline over 5 years | -17.00% | -18.03% | +1.03% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -4.87% | -5.43% | +0.56% |
Average DrawdownAverage peak-to-trough decline | -3.61% | -7.82% | +4.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.89% | 1.89% | +1.00% |
Volatility
HUSV vs. FAAR - Volatility Comparison
First Trust Horizon Managed Volatility Domestic ETF (HUSV) has a higher volatility of 2.92% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that HUSV'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
| HUSV | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.92% | 2.47% | +0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 6.57% | 9.68% | -3.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.28% | 13.37% | -4.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.03% | 12.95% | -0.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.47% | 11.53% | +2.94% |
HUSV vs. FAAR - Expense Ratio Comparison
HUSV has a 0.70% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
HUSV vs. FAAR - Dividend Comparison
HUSV's dividend yield for the trailing twelve months is around 1.39%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
HUSV First Trust Horizon Managed Volatility Domestic ETF | 1.39% | 1.38% | 1.14% | 1.80% | 1.68% | 1.35% | 1.29% | 1.36% | 1.48% | 1.31% | 0.35% |
Frequently Asked Questions
HUSV and FAAR have a correlation of -0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HUSV has higher volatility (2.92%) compared to FAAR (2.47%). In terms of maximum drawdown, HUSV dropped -35.72% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.89% vs 5.67% for HUSV. On fees, HUSV is cheaper at 0.70% per year. On volatility, FAAR has been the lower-risk option at 2.47%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FAAR has performed better with a 7.89% return vs 5.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HUSV is cheaper with a 0.70% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 1.39% for HUSV.
HUSV is categorized as Volatility Hedged Equity, while FAAR is Commodities. Their fees differ too: 0.70% for HUSV and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs -0.09), 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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