IGOV vs. FAAR
IGOV (iShares International Treasury Bond ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - IGOV is a International Government Bonds fund tracking the FTSE World Government Bond Index - Developed Markets Capped Select Index, while FAAR is a Commodities fund actively managed by First Trust. IGOV is passively managed, while FAAR is actively managed. Over the past 10 years, IGOV returned -1.47%/yr vs 4.79%/yr for FAAR. At a 0.02 correlation, their price movements are largely independent. IGOV charges 0.35%/yr vs 0.95%/yr for FAAR.
Performance
IGOV vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, IGOV achieves a -1.54% return, which is significantly lower than FAAR's 20.23% return. Over the past 10 years, IGOV has underperformed FAAR with an annualized return of -1.47%, while FAAR has yielded a comparatively higher 4.79% annualized return.
IGOV
- 1D
- -0.44%
- 1M
- -0.99%
- YTD
- -1.54%
- 6M
- -1.25%
- 1Y
- -1.38%
- 3Y*
- 1.82%
- 5Y*
- -4.29%
- 10Y*
- -1.47%
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%
IGOV vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IGOV iShares International Treasury Bond ETF | -1.54% | 9.96% | -6.50% | 5.57% | -22.07% | -9.25% | 10.88% | 3.76% | -2.60% | 11.38% |
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 IGOV and FAAR is -0.19, 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 | -0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.08 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.04 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.02 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.02 |
The correlation between IGOV and FAAR shifts across timeframes, from -0.19 (1 year) to 0.02 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
IGOV vs. FAAR — Risk / Return Rank
IGOV
FAAR
IGOV vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares International Treasury Bond ETF (IGOV) 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.
| IGOV | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.19 | ||
| Sortino ratioReturn per unit of downside risk | -3.08 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.35 | -0.37 |
| Calmar ratioReturn relative to maximum drawdown | -0.24 | 4.75 | -4.99 |
| Martin ratioReturn relative to average drawdown | -0.54 | 14.70 | -15.24 |
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Drawdowns
IGOV vs. FAAR - Drawdown Comparison
The maximum IGOV drawdown since its inception was -35.88%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for IGOV and FAAR.
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Drawdown Indicators
| IGOV | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.88% | -18.03% | -17.85% |
Max Drawdown (1Y)Largest decline over 1 year | -5.70% | -5.68% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -10.65% | -11.54% | +0.89% |
Max Drawdown (5Y)Largest decline over 5 years | -32.92% | -18.03% | -14.89% |
Max Drawdown (10Y)Largest decline over 10 years | -35.88% | -18.03% | -17.85% |
Current DrawdownCurrent decline from peak | -24.80% | -5.43% | -19.37% |
Average DrawdownAverage peak-to-trough decline | -11.05% | -7.82% | -3.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.56% | 1.89% | +0.67% |
Volatility
IGOV vs. FAAR - Volatility Comparison
The current volatility for iShares International Treasury Bond ETF (IGOV) is 2.28%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.47%. This indicates that IGOV experiences smaller price fluctuations and is considered to be less risky 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
| IGOV | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.28% | 2.47% | -0.19% |
Volatility (6M)Calculated over the trailing 6-month period | 6.36% | 9.68% | -3.32% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.15% | 13.37% | -5.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.97% | 12.95% | -2.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.61% | 11.53% | -2.92% |
IGOV vs. FAAR - Expense Ratio Comparison
IGOV has a 0.35% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
IGOV vs. FAAR - Dividend Comparison
IGOV's dividend yield for the trailing twelve months is around 1.43%, 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% |
IGOV iShares International Treasury Bond ETF | 1.43% | 1.41% | 0.59% | 0.00% | 0.11% | 0.39% | 0.00% | 0.24% | 0.31% | 0.19% | 0.69% | 0.12% |
Frequently Asked Questions
IGOV and FAAR have a correlation of -0.19, 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 IGOV (2.28%). In terms of maximum drawdown, IGOV dropped -35.88% vs FAAR's -18.03%.
On 10-year performance, FAAR leads with 4.79% vs -1.47% for IGOV. On fees, IGOV is cheaper at 0.35% per year. On volatility, IGOV has been the lower-risk option at 2.28%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FAAR has performed better with a 4.79% return vs -1.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IGOV is cheaper with a 0.35% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 1.43% for IGOV.
IGOV is categorized as International Government Bonds, while FAAR is Commodities. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.35% for IGOV and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs -0.17), 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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