LDSF vs. CAAA

Last updated Jun 24, 2026

LDSF (First Trust Low Duration Strategic Focus ETF) and CAAA (First Trust Commercial Mortgage Opportunities ETF) are both exchange-traded funds - LDSF is a Short-Term Bond fund actively managed by First Trust, while CAAA is a Intermediate Core-Plus Bond fund actively managed by First Trust. Both are actively managed. Over the past year, LDSF returned 4.46% vs 4.50% for CAAA. A 0.62 correlation means they provide meaningful diversification when combined. LDSF charges 0.87%/yr vs 0.55%/yr for CAAA.

Performance

LDSF vs. CAAA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Low Duration Strategic Focus ETF (LDSF) and First Trust Commercial Mortgage Opportunities ETF (CAAA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LDSF achieves a 0.82% return, which is significantly higher than CAAA's 0.74% return.

LDSF

• 1D: 0.00%
• 1M: 0.39%
• YTD: 0.82%
• 6M: 0.93%
• 1Y: 4.46%
• 3Y*: 5.34%
• 5Y*: 2.41%
• 10Y*: —

CAAA

• 1D: -0.22%
• 1M: 0.55%
• YTD: 0.74%
• 6M: 0.86%
• 1Y: 4.50%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

LDSF vs. CAAA - Yearly Performance Comparison

	2026 (YTD)	2025	2024
LDSF First Trust Low Duration Strategic Focus ETF	0.82%	6.82%	4.39%
CAAA First Trust Commercial Mortgage Opportunities ETF	0.74%	8.03%	4.65%

Correlation

The correlation between LDSF and CAAA is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.58
Correlation (All Time) Calculated using the full available price history since Feb 28, 2024	0.62

The correlation between LDSF and CAAA has been stable across timeframes, ranging from 0.58 to 0.62 - a consistent structural relationship.

Return for Risk

LDSF vs. CAAA — Risk / Return Rank

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

LDSF

LDSF Risk / Return Rank: 71
LDSF Sharpe Ratio Rank: 73
LDSF Sortino Ratio Rank: 80
LDSF Omega Ratio Rank: 81
LDSF Calmar Ratio Rank: 56
LDSF Martin Ratio Rank: 64

CAAA

CAAA Risk / Return Rank: 45
CAAA Sharpe Ratio Rank: 45
CAAA Sortino Ratio Rank: 47
CAAA Omega Ratio Rank: 44
CAAA Calmar Ratio Rank: 47
CAAA Martin Ratio Rank: 42

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.

LDSF vs. CAAA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Low Duration Strategic Focus ETF (LDSF) and First Trust Commercial Mortgage Opportunities ETF (CAAA). 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.

	LDSF	CAAA	Difference
Sharpe ratio: Return per unit of total volatility	2.18	1.47	+0.72
Sortino ratio: Return per unit of downside risk	3.30	2.20	+1.10
Omega ratio: Gain probability vs. loss probability	1.45	1.27	+0.18
Calmar ratio: Return relative to maximum drawdown	2.57	2.17	+0.40
Martin ratio: Return relative to average drawdown	10.83	6.45	+4.37

LDSF vs. CAAA - Sharpe Ratio Comparison

The current LDSF Sharpe Ratio is 2.18, which is higher than the CAAA Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of LDSF and CAAA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LDSF vs. CAAA - Drawdown Comparison

The maximum LDSF drawdown since its inception was -8.56%, which is greater than CAAA's maximum drawdown of -2.24%. Use the drawdown chart below to compare losses from any high point for LDSF and CAAA.

Drawdown Indicators

	LDSF	CAAA	Difference
Max Drawdown Largest peak-to-trough decline	-8.56%	-2.24%	-6.32%
Max Drawdown (1Y) Largest decline over 1 year	-1.74%	-2.08%	+0.34%
Max Drawdown (3Y) Largest decline over 3 years	-1.74%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-7.83%	—	—
Current Drawdown Current decline from peak	-0.26%	-0.87%	+0.61%
Average Drawdown Average peak-to-trough decline	-1.45%	-0.56%	-0.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.41%	0.70%	-0.29%

Volatility

LDSF vs. CAAA - Volatility Comparison

The current volatility for First Trust Low Duration Strategic Focus ETF (LDSF) is 0.67%, while First Trust Commercial Mortgage Opportunities ETF (CAAA) has a volatility of 1.01%. This indicates that LDSF experiences smaller price fluctuations and is considered to be less risky than CAAA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LDSF	CAAA	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.67%	1.01%	-0.34%
Volatility (6M) Calculated over the trailing 6-month period	1.71%	2.25%	-0.54%
Volatility (1Y) Calculated over the trailing 1-year period	2.05%	3.10%	-1.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.09%	3.21%	-0.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.17%	3.21%	-0.04%

LDSF vs. CAAA - Expense Ratio Comparison

LDSF has a 0.87% expense ratio, which is higher than CAAA's 0.55% expense ratio.

Dividends

LDSF vs. CAAA - Dividend Comparison

LDSF's dividend yield for the trailing twelve months is around 4.63%, less than CAAA's 5.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
CAAA First Trust Commercial Mortgage Opportunities ETF	5.29%	6.09%	4.01%	0.00%	0.00%	0.00%	0.00%	0.00%
LDSF First Trust Low Duration Strategic Focus ETF	4.63%	4.52%	4.53%	4.08%	2.61%	1.97%	2.65%	3.06%

Frequently Asked Questions

Can I hold both LDSF and CAAA in my portfolio?

LDSF and CAAA have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LDSF or CAAA?

CAAA has higher volatility (1.01%) compared to LDSF (0.67%). In terms of maximum drawdown, LDSF dropped -8.56% vs CAAA's -2.24%.

Which ETF is better, LDSF or CAAA?

On 1-year performance, CAAA leads with 4.50% vs 4.46% for LDSF. On fees, CAAA is cheaper at 0.55% per year. On volatility, LDSF has been the lower-risk option at 0.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LDSF or CAAA?

Over the 1-year period, CAAA has performed better with a 4.50% return vs 4.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LDSF or CAAA?

CAAA is cheaper with a 0.55% expense ratio, compared with 0.87% for LDSF.

Which ETF pays a higher dividend yield, LDSF or CAAA?

CAAA has the higher dividend yield at 5.29%, compared with 4.63% for LDSF.

What is the main difference between LDSF and CAAA?

LDSF is categorized as Short-Term Bond, while CAAA is Intermediate Core-Plus Bond. Their fees differ too: 0.87% for LDSF and 0.55% for CAAA.

Which has better risk-adjusted returns?

LDSF currently has the higher Sharpe Ratio (2.18 vs 1.47), 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.