KNG vs. FAAR
KNG (FT Vest S&P 500 Dividend Aristocrats Target Income ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - KNG is a Dividend fund tracking the Cboe S&P 500 Dividend Aristocrats Target Income Index Monthly Series, while FAAR is a Commodities fund actively managed by First Trust. KNG is passively managed, while FAAR is actively managed. Over the past 5 years, KNG returned 5.39%/yr vs 7.72%/yr for FAAR. At a 0.05 correlation, their price movements are largely independent. KNG charges 0.75%/yr vs 0.95%/yr for FAAR.
Performance
KNG vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, KNG achieves a 4.84% return, which is significantly lower than FAAR's 19.14% return.
KNG
- 1D
- 0.65%
- 1M
- 2.07%
- YTD
- 4.84%
- 6M
- 4.41%
- 1Y
- 10.46%
- 3Y*
- 7.42%
- 5Y*
- 5.39%
- 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%
KNG vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
KNG FT Vest S&P 500 Dividend Aristocrats Target Income ETF | 4.84% | 6.63% | 5.99% | 7.48% | -7.03% | 24.78% | 7.21% | 26.64% | -1.56% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.14% |
Correlation
The correlation between KNG 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 | -0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.01 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 2018 | 0.05 |
The correlation between KNG and FAAR shifts across timeframes, from -0.11 (1 year) to 0.05 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
KNG vs. FAAR — Risk / Return Rank
KNG
FAAR
KNG vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) 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.
| KNG | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.14 | ||
| Sortino ratioReturn per unit of downside risk | -1.54 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.37 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.22 | 4.52 | -3.30 |
| Martin ratioReturn relative to average drawdown | 3.07 | 15.18 | -12.11 |
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Drawdowns
KNG vs. FAAR - Drawdown Comparison
The maximum KNG drawdown since its inception was -35.12%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for KNG and FAAR.
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Drawdown Indicators
| KNG | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.12% | -18.03% | -17.09% |
Max Drawdown (1Y)Largest decline over 1 year | -8.61% | -6.29% | -2.32% |
Max Drawdown (3Y)Largest decline over 3 years | -14.24% | -11.54% | -2.70% |
Max Drawdown (5Y)Largest decline over 5 years | -18.20% | -18.03% | -0.17% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -3.46% | -6.29% | +2.83% |
Average DrawdownAverage peak-to-trough decline | -4.13% | -7.82% | +3.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.42% | 1.87% | +1.55% |
Volatility
KNG vs. FAAR - Volatility Comparison
FT Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) has a higher volatility of 3.00% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that KNG'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
| KNG | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.00% | 2.55% | +0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 7.59% | 9.68% | -2.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.41% | 13.38% | -2.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.58% | 12.96% | +0.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.15% | 11.54% | +5.61% |
KNG vs. FAAR - Expense Ratio Comparison
KNG has a 0.75% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
KNG vs. FAAR - Dividend Comparison
KNG's dividend yield for the trailing twelve months is around 8.45%, less than FAAR's 9.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
KNG FT Vest S&P 500 Dividend Aristocrats Target Income ETF | 8.45% | 8.61% | 9.08% | 5.91% | 4.00% | 3.45% | 3.62% | 4.09% | 3.46% | 0.00% |
Frequently Asked Questions
KNG 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.
KNG has higher volatility (3.00%) compared to FAAR (2.55%). In terms of maximum drawdown, KNG dropped -35.12% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.72% vs 5.39% for KNG. On fees, KNG is cheaper at 0.75% 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 5.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
KNG is cheaper with a 0.75% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 8.45% for KNG.
KNG is categorized as Dividend, while FAAR is Commodities. Their fees differ too: 0.75% for KNG and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.01), 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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