IPAY vs. FAAR
IPAY (ETFMG Prime Mobile Payments ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - IPAY is a Technology Equities fund tracking the Prime Mobile Payments Index, while FAAR is a Commodities fund actively managed by First Trust. IPAY is passively managed, while FAAR is actively managed. Over the past 10 years, IPAY returned 6.83%/yr vs 4.79%/yr for FAAR. At a 0.05 correlation, their price movements are largely independent. IPAY charges 0.75%/yr vs 0.95%/yr for FAAR.
Performance
IPAY vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, IPAY achieves a -15.66% return, which is significantly lower than FAAR's 20.23% return. Over the past 10 years, IPAY has outperformed FAAR with an annualized return of 6.83%, while FAAR has yielded a comparatively lower 4.79% annualized return.
IPAY
- 1D
- -1.15%
- 1M
- -2.98%
- YTD
- -15.66%
- 6M
- -17.25%
- 1Y
- -21.91%
- 3Y*
- 2.40%
- 5Y*
- -8.82%
- 10Y*
- 6.83%
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%
IPAY vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IPAY ETFMG Prime Mobile Payments ETF | -15.66% | -9.55% | 25.88% | 18.21% | -32.38% | -12.72% | 34.22% | 41.80% | 0.17% | 36.34% |
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 IPAY and FAAR is -0.15, 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 | -0.15 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.00 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.05 |
The correlation between IPAY and FAAR shifts across timeframes, from -0.15 (1 year) to 0.05 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
IPAY vs. FAAR — Risk / Return Rank
IPAY
FAAR
IPAY vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ETFMG Prime Mobile Payments ETF (IPAY) 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.
| IPAY | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.94 | ||
| Sortino ratioReturn per unit of downside risk | -4.05 | ||
| Omega ratioGain probability vs. loss probability | 0.86 | 1.35 | -0.49 |
| Calmar ratioReturn relative to maximum drawdown | -0.70 | 4.75 | -5.45 |
| Martin ratioReturn relative to average drawdown | -1.26 | 14.70 | -15.96 |
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Drawdowns
IPAY vs. FAAR - Drawdown Comparison
The maximum IPAY drawdown since its inception was -51.75%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for IPAY and FAAR.
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Drawdown Indicators
| IPAY | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.75% | -18.03% | -33.72% |
Max Drawdown (1Y)Largest decline over 1 year | -31.31% | -5.68% | -25.63% |
Max Drawdown (3Y)Largest decline over 3 years | -32.74% | -11.54% | -21.20% |
Max Drawdown (5Y)Largest decline over 5 years | -51.49% | -18.03% | -33.46% |
Max Drawdown (10Y)Largest decline over 10 years | -51.75% | -18.03% | -33.72% |
Current DrawdownCurrent decline from peak | -38.94% | -5.43% | -33.51% |
Average DrawdownAverage peak-to-trough decline | -16.76% | -7.82% | -8.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 17.38% | 1.89% | +15.49% |
Volatility
IPAY vs. FAAR - Volatility Comparison
ETFMG Prime Mobile Payments ETF (IPAY) has a higher volatility of 7.87% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that IPAY'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
| IPAY | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.87% | 2.47% | +5.40% |
Volatility (6M)Calculated over the trailing 6-month period | 18.79% | 9.68% | +9.11% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.96% | 13.37% | +10.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.15% | 12.95% | +13.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.43% | 11.53% | +13.90% |
IPAY vs. FAAR - Expense Ratio Comparison
IPAY has a 0.75% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
IPAY vs. FAAR - Dividend Comparison
IPAY's dividend yield for the trailing twelve months is around 0.94%, 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% |
IPAY ETFMG Prime Mobile Payments ETF | 0.94% | 0.79% | 0.77% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
IPAY and FAAR have a correlation of -0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IPAY has higher volatility (7.87%) compared to FAAR (2.47%). In terms of maximum drawdown, IPAY dropped -51.75% vs FAAR's -18.03%.
On 10-year performance, IPAY leads with 6.83% vs 4.79% for FAAR. On fees, IPAY is cheaper at 0.75% 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 10-year period, IPAY has performed better with a 6.83% return vs 4.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IPAY is cheaper with a 0.75% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.94% for IPAY.
IPAY is categorized as Technology Equities, while FAAR is Commodities. They also come from different issuers: ETFMG and First Trust. Their fees differ too: 0.75% for IPAY and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs -0.92), 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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