IEDI vs. FAAR
IEDI (iShares Evolved U.S. Discretionary Spending ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - IEDI is a Consumer Discretionary Equities fund actively managed by iShares, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 5 years, IEDI returned 5.92%/yr vs 7.89%/yr for FAAR. At a 0.01 correlation, their price movements are largely independent. IEDI charges 0.18%/yr vs 0.95%/yr for FAAR.
Performance
IEDI vs. FAAR - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, IEDI achieves a -0.52% return, which is significantly lower than FAAR's 20.23% return.
IEDI
- 1D
- -1.30%
- 1M
- -0.83%
- YTD
- -0.52%
- 6M
- -1.52%
- 1Y
- 3.72%
- 3Y*
- 12.66%
- 5Y*
- 5.92%
- 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%
IEDI vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
IEDI iShares Evolved U.S. Discretionary Spending ETF | -0.52% | 4.05% | 22.11% | 24.32% | -23.17% | 21.19% | 29.83% | 31.07% | 0.42% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -8.70% |
Correlation
The correlation between IEDI and FAAR is -0.13, 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 | -0.13 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.02 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since Mar 23, 2018 | 0.01 |
The correlation between IEDI and FAAR shifts across timeframes, from -0.13 (1 year) to 0.01 (all time), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
IEDI vs. FAAR — Risk / Return Rank
IEDI
FAAR
IEDI vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Evolved U.S. Discretionary Spending ETF (IEDI) 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.
| IEDI | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.75 | ||
| Sortino ratioReturn per unit of downside risk | -2.39 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.35 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | 0.40 | 4.75 | -4.35 |
| Martin ratioReturn relative to average drawdown | 0.92 | 14.70 | -13.77 |
Loading charts...
Drawdowns
IEDI vs. FAAR - Drawdown Comparison
The maximum IEDI drawdown since its inception was -30.60%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for IEDI and FAAR.
Loading charts...
Drawdown Indicators
| IEDI | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -30.60% | -18.03% | -12.57% |
Max Drawdown (1Y)Largest decline over 1 year | -9.44% | -5.68% | -3.76% |
Max Drawdown (3Y)Largest decline over 3 years | -18.64% | -11.54% | -7.10% |
Max Drawdown (5Y)Largest decline over 5 years | -29.79% | -18.03% | -11.76% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -6.34% | -5.43% | -0.91% |
Average DrawdownAverage peak-to-trough decline | -6.92% | -7.82% | +0.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.03% | 1.89% | +2.14% |
Volatility
IEDI vs. FAAR - Volatility Comparison
iShares Evolved U.S. Discretionary Spending ETF (IEDI) has a higher volatility of 4.35% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that IEDI'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.
Loading charts...
Volatility by Period
| IEDI | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.35% | 2.47% | +1.88% |
Volatility (6M)Calculated over the trailing 6-month period | 10.60% | 9.68% | +0.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.69% | 13.37% | +0.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.26% | 12.95% | +5.31% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.43% | 11.53% | +7.90% |
IEDI vs. FAAR - Expense Ratio Comparison
IEDI has a 0.18% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
IEDI vs. FAAR - Dividend Comparison
IEDI's dividend yield for the trailing twelve months is around 0.96%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
IEDI iShares Evolved U.S. Discretionary Spending ETF | 0.96% | 0.95% | 0.90% | 1.13% | 3.38% | 0.70% | 0.83% | 2.07% | 1.57% | 0.00% |
Frequently Asked Questions
IEDI and FAAR have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IEDI has higher volatility (4.35%) compared to FAAR (2.47%). In terms of maximum drawdown, IEDI dropped -30.60% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.89% vs 5.92% for IEDI. On fees, IEDI is cheaper at 0.18% 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 5.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IEDI is cheaper with a 0.18% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.96% for IEDI.
IEDI is categorized as Consumer Discretionary Equities, while FAAR is Commodities. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.18% for IEDI and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 0.27), 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.
Find the right allocation for IEDI and FAAR
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer