ISHP vs. FAAR
ISHP (First Trust S-Network Global E-Commerce ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - ISHP is a Consumer Discretionary Equities fund tracking the S-Network Global E-Commerce Index, while FAAR is a Commodities fund actively managed by First Trust. ISHP is passively managed, while FAAR is actively managed. Over the past 5 years, ISHP returned 0.46%/yr vs 7.72%/yr for FAAR. At a 0.03 correlation, their price movements are largely independent. ISHP charges 0.60%/yr vs 0.95%/yr for FAAR.
Performance
ISHP vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, ISHP achieves a -16.46% return, which is significantly lower than FAAR's 19.14% return.
ISHP
- 1D
- -1.03%
- 1M
- -3.26%
- YTD
- -16.46%
- 6M
- -16.45%
- 1Y
- -14.21%
- 3Y*
- 8.69%
- 5Y*
- 0.46%
- 10Y*
- —
FAAR
- 1D
- -0.91%
- 1M
- -5.21%
- YTD
- 19.14%
- 6M
- 18.06%
- 1Y
- 28.33%
- 3Y*
- 10.57%
- 5Y*
- 7.72%
- 10Y*
- 4.69%
ISHP vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ISHP First Trust S-Network Global E-Commerce ETF | -16.46% | 12.27% | 24.17% | 22.24% | -33.79% | 30.09% | 15.33% | 19.74% | -2.04% | 7.66% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between ISHP 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 | -0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.01 |
Correlation (All Time) Calculated using the full available price history since Oct 11, 2016 | 0.03 |
The correlation between ISHP and FAAR shifts across timeframes, from -0.13 (1 year) to 0.03 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
ISHP vs. FAAR — Risk / Return Rank
ISHP
FAAR
ISHP vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust S-Network Global E-Commerce ETF (ISHP) 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.
| ISHP | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.96 | ||
| Sortino ratioReturn per unit of downside risk | -4.13 | ||
| Omega ratioGain probability vs. loss probability | 0.88 | 1.37 | -0.49 |
| Calmar ratioReturn relative to maximum drawdown | -0.58 | 4.52 | -5.10 |
| Martin ratioReturn relative to average drawdown | -1.15 | 15.18 | -16.33 |
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Drawdowns
ISHP vs. FAAR - Drawdown Comparison
The maximum ISHP drawdown since its inception was -47.57%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for ISHP and FAAR.
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Drawdown Indicators
| ISHP | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -47.57% | -18.03% | -29.54% |
Max Drawdown (1Y)Largest decline over 1 year | -24.75% | -6.29% | -18.46% |
Max Drawdown (3Y)Largest decline over 3 years | -24.75% | -11.54% | -13.21% |
Max Drawdown (5Y)Largest decline over 5 years | -47.57% | -18.03% | -29.54% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -23.26% | -6.29% | -16.97% |
Average DrawdownAverage peak-to-trough decline | -12.69% | -7.82% | -4.87% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 12.40% | 1.87% | +10.53% |
Volatility
ISHP vs. FAAR - Volatility Comparison
First Trust S-Network Global E-Commerce ETF (ISHP) has a higher volatility of 5.73% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that ISHP'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
| ISHP | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.73% | 2.55% | +3.18% |
Volatility (6M)Calculated over the trailing 6-month period | 14.11% | 9.68% | +4.43% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.62% | 13.38% | +4.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.26% | 12.96% | +14.30% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 24.08% | 11.54% | +12.54% |
ISHP vs. FAAR - Expense Ratio Comparison
ISHP has a 0.60% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
ISHP vs. FAAR - Dividend Comparison
ISHP's dividend yield for the trailing twelve months is around 1.60%, less than FAAR's 9.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.66% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% | 0.00% |
ISHP First Trust S-Network Global E-Commerce ETF | 1.60% | 1.34% | 1.02% | 1.58% | 0.76% | 0.53% | 0.82% | 1.16% | 0.89% | 1.65% | 0.23% |
Frequently Asked Questions
ISHP 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.
ISHP has higher volatility (5.73%) compared to FAAR (2.55%). In terms of maximum drawdown, ISHP dropped -47.57% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.72% vs 0.46% for ISHP. On fees, ISHP is cheaper at 0.60% per year. On volatility, FAAR has been the lower-risk option at 2.55%. 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 7.72% return vs 0.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ISHP is cheaper with a 0.60% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 1.60% for ISHP.
ISHP is categorized as Consumer Discretionary Equities, while FAAR is Commodities. Their fees differ too: 0.60% for ISHP and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs -0.81), 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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