KRBN vs. FAAR

Last updated Jun 4, 2026

KRBN (KraneShares Global Carbon ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both Commodities funds. KRBN is passively managed, while FAAR is actively managed. Over the past 5 years, KRBN returned 7.47%/yr vs 8.07%/yr for FAAR. At a 0.06 correlation, their price movements are largely independent. KRBN charges 0.79%/yr vs 0.95%/yr for FAAR.

Performance

KRBN vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares Global Carbon ETF (KRBN) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KRBN achieves a -5.94% return, which is significantly lower than FAAR's 25.73% return.

KRBN

• 1D: -0.13%
• 1M: 4.47%
• YTD: -5.94%
• 6M: -0.74%
• 1Y: 15.04%
• 3Y*: 3.45%
• 5Y*: 7.47%
• 10Y*: —

FAAR

• 1D: 0.01%
• 1M: -0.79%
• YTD: 25.73%
• 6M: 23.17%
• 1Y: 40.73%
• 3Y*: 11.79%
• 5Y*: 8.07%
• 10Y*: 5.17%

*Multi-year figures are annualized to reflect compound growth (CAGR)

KRBN vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
KRBN KraneShares Global Carbon ETF	-5.94%	23.11%	-13.56%	8.01%	-12.75%	107.69%	22.60%
FAAR First Trust Alternative Absolute Return Strategy ETF	25.73%	8.07%	5.97%	-5.63%	10.15%	12.34%	5.17%

Correlation

The correlation between KRBN and FAAR is -0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.06
Correlation (3Y) Calculated over the trailing 3-year period	-0.04
Correlation (5Y) Calculated over the trailing 5-year period	0.02
Correlation (All Time) Calculated using the full available price history since Jul 31, 2020	0.06

The correlation between KRBN and FAAR shifts across timeframes, from -0.06 (1 year) to 0.06 (all time), reflecting how their relationship changes across market environments.

KRBN vs. FAAR - Sectors Allocation Comparison

Sectors	KRBN	FAAR
Financial Services	59.7%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

KRBN vs. FAAR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

KRBN

KRBN Risk / Return Rank: 20
KRBN Sharpe Ratio Rank: 23
KRBN Sortino Ratio Rank: 21
KRBN Omega Ratio Rank: 23
KRBN Calmar Ratio Rank: 16
KRBN Martin Ratio Rank: 16

FAAR

FAAR Risk / Return Rank: 90
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 84
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 92

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

KRBN vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares Global Carbon ETF (KRBN) 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.

	KRBN	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	0.80	3.04	-2.24
Sortino ratio: Return per unit of downside risk	1.13	4.23	-3.10
Omega ratio: Gain probability vs. loss probability	1.15	1.52	-0.37
Calmar ratio: Return relative to maximum drawdown	0.60	8.44	-7.84
Martin ratio: Return relative to average drawdown	1.58	23.64	-22.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KRBN vs. FAAR - Sharpe Ratio Comparison

The current KRBN Sharpe Ratio is 0.80, which is lower than the FAAR Sharpe Ratio of 3.04. The chart below compares the historical Sharpe Ratios of KRBN and FAAR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	KRBN	FAAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.80	3.04	-2.24
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.62	-0.36
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.45	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.45	+0.12

Drawdowns

KRBN vs. FAAR - Drawdown Comparison

The maximum KRBN drawdown since its inception was -36.42%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for KRBN and FAAR.

Drawdown Indicators

	KRBN	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-36.42%	-18.03%	-18.39%
Max Drawdown (1Y) Largest decline over 1 year	-24.98%	-4.85%	-20.13%
Max Drawdown (3Y) Largest decline over 3 years	-27.34%	-11.54%	-15.80%
Max Drawdown (5Y) Largest decline over 5 years	-36.42%	-18.03%	-18.39%
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-14.26%	-1.11%	-13.15%
Average Drawdown Average peak-to-trough decline	-16.14%	-7.85%	-8.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.54%	1.73%	+7.81%

Volatility

KRBN vs. FAAR - Volatility Comparison

KraneShares Global Carbon ETF (KRBN) has a higher volatility of 5.13% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.44%. This indicates that KRBN'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.

Volatility by Period

	KRBN	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.13%	2.44%	+2.69%
Volatility (6M) Calculated over the trailing 6-month period	16.61%	9.72%	+6.89%
Volatility (1Y) Calculated over the trailing 1-year period	18.93%	13.48%	+5.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.10%	13.02%	+15.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.63%	11.51%	+17.12%

KRBN vs. FAAR - Expense Ratio Comparison

KRBN has a 0.79% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

KRBN vs. FAAR - Dividend Comparison

KRBN's dividend yield for the trailing twelve months is around 2.02%, less than FAAR's 9.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.15%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
KRBN KraneShares Global Carbon ETF	2.02%	1.90%	7.10%	7.60%	22.91%	0.49%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KRBN and FAAR in my portfolio?

KRBN and FAAR have a correlation of -0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KRBN or FAAR?

KRBN has higher volatility (5.13%) compared to FAAR (2.44%). In terms of maximum drawdown, KRBN dropped -36.42% vs FAAR's -18.03%.

Which ETF is better, KRBN or FAAR?

On 5-year performance, FAAR leads with 8.07% vs 7.47% for KRBN. On fees, KRBN is cheaper at 0.79% per year. On volatility, FAAR has been the lower-risk option at 2.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KRBN or FAAR?

Over the 5-year period, FAAR has performed better with a 8.07% return vs 7.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KRBN or FAAR?

KRBN is cheaper with a 0.79% expense ratio, compared with 0.95% for FAAR.

Which ETF pays a higher dividend yield, KRBN or FAAR?

FAAR has the higher dividend yield at 9.15%, compared with 2.02% for KRBN.

What is the main difference between KRBN and FAAR?

They also come from different issuers: CICC and First Trust. Their fees differ too: 0.79% for KRBN and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (3.04 vs 0.80), 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.