MOAT vs. FAAR
MOAT (VanEck Morningstar Wide Moat ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - MOAT is a Large Cap Blend Equities fund tracking the Morningstar Wide Moat Focus Index, while FAAR is a Commodities fund actively managed by First Trust. MOAT is passively managed, while FAAR is actively managed. Over the past 10 years, MOAT returned 13.63%/yr vs 4.79%/yr for FAAR. At a 0.04 correlation, their price movements are largely independent. MOAT charges 0.47%/yr vs 0.95%/yr for FAAR.
Performance
MOAT vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, MOAT achieves a -2.48% return, which is significantly lower than FAAR's 20.23% return. Over the past 10 years, MOAT has outperformed FAAR with an annualized return of 13.63%, while FAAR has yielded a comparatively lower 4.79% annualized return.
MOAT
- 1D
- -1.11%
- 1M
- -1.22%
- YTD
- -2.48%
- 6M
- -3.43%
- 1Y
- 12.95%
- 3Y*
- 10.33%
- 5Y*
- 7.77%
- 10Y*
- 13.63%
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%
MOAT vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MOAT VanEck Morningstar Wide Moat ETF | -2.48% | 13.20% | 10.73% | 31.89% | -13.66% | 24.12% | 14.84% | 34.79% | -1.28% | 23.18% |
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 MOAT and FAAR is -0.08, 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 | -0.08 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.02 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.01 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.04 |
The correlation between MOAT and FAAR shifts across timeframes, from -0.08 (1 year) to 0.04 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
MOAT vs. FAAR — Risk / Return Rank
MOAT
FAAR
MOAT vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Morningstar Wide Moat ETF (MOAT) 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.
| MOAT | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.09 | ||
| Sortino ratioReturn per unit of downside risk | -1.48 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.35 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 1.05 | 4.75 | -3.70 |
| Martin ratioReturn relative to average drawdown | 3.16 | 14.70 | -11.54 |
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Drawdowns
MOAT vs. FAAR - Drawdown Comparison
The maximum MOAT drawdown since its inception was -33.31%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for MOAT and FAAR.
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Drawdown Indicators
| MOAT | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -33.31% | -18.03% | -15.28% |
Max Drawdown (1Y)Largest decline over 1 year | -12.43% | -5.68% | -6.75% |
Max Drawdown (3Y)Largest decline over 3 years | -21.44% | -11.54% | -9.90% |
Max Drawdown (5Y)Largest decline over 5 years | -23.96% | -18.03% | -5.93% |
Max Drawdown (10Y)Largest decline over 10 years | -33.31% | -18.03% | -15.28% |
Current DrawdownCurrent decline from peak | -6.20% | -5.43% | -0.77% |
Average DrawdownAverage peak-to-trough decline | -3.83% | -7.82% | +3.99% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.11% | 1.89% | +2.22% |
Volatility
MOAT vs. FAAR - Volatility Comparison
VanEck Morningstar Wide Moat ETF (MOAT) has a higher volatility of 4.72% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that MOAT'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
| MOAT | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 2.47% | +2.25% |
Volatility (6M)Calculated over the trailing 6-month period | 10.24% | 9.68% | +0.56% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.02% | 13.37% | +0.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.24% | 12.95% | +5.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.70% | 11.53% | +7.17% |
MOAT vs. FAAR - Expense Ratio Comparison
MOAT has a 0.47% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
MOAT vs. FAAR - Dividend Comparison
MOAT's dividend yield for the trailing twelve months is around 1.39%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% | 0.00% |
MOAT VanEck Morningstar Wide Moat ETF | 1.39% | 1.36% | 1.37% | 0.86% | 1.25% | 1.08% | 1.46% | 1.31% | 1.79% | 1.07% | 1.17% | 2.13% |
Frequently Asked Questions
MOAT and FAAR have a correlation of -0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MOAT has higher volatility (4.72%) compared to FAAR (2.47%). In terms of maximum drawdown, MOAT dropped -33.31% vs FAAR's -18.03%.
On 10-year performance, MOAT leads with 13.63% vs 4.79% for FAAR. On fees, MOAT is cheaper at 0.47% 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, MOAT has performed better with a 13.63% return vs 4.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MOAT is cheaper with a 0.47% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 1.39% for MOAT.
MOAT is categorized as Large Cap Blend Equities, while FAAR is Commodities. They also come from different issuers: VanEck and First Trust. Their fees differ too: 0.47% for MOAT and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 0.93), 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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