OCTZ vs. FAAR
OCTZ (TrueShares Structured Outcome (October) ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - OCTZ is a Defined Outcome fund actively managed by TrueShares, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 5 years, OCTZ returned 11.17%/yr vs 8.03%/yr for FAAR. At a 0.04 correlation, their price movements are largely independent. OCTZ charges 0.79%/yr vs 0.95%/yr for FAAR.
Performance
OCTZ vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, OCTZ achieves a 7.59% return, which is significantly lower than FAAR's 20.28% return.
OCTZ
- 1D
- 0.97%
- 1M
- 0.68%
- YTD
- 7.59%
- 6M
- 7.86%
- 1Y
- 19.96%
- 3Y*
- 15.29%
- 5Y*
- 11.17%
- 10Y*
- —
FAAR
- 1D
- 0.31%
- 1M
- -4.57%
- YTD
- 20.28%
- 6M
- 20.86%
- 1Y
- 26.92%
- 3Y*
- 10.85%
- 5Y*
- 8.03%
- 10Y*
- 4.74%
OCTZ vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
OCTZ TrueShares Structured Outcome (October) ETF | 7.59% | 12.89% | 18.89% | 18.18% | -10.23% | 20.49% | 8.44% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.28% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 5.40% |
Correlation
The correlation between OCTZ 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 | 0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Oct 1, 2020 | 0.04 |
The correlation between OCTZ 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
OCTZ vs. FAAR — Risk / Return Rank
OCTZ
FAAR
OCTZ vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for TrueShares Structured Outcome (October) ETF (OCTZ) 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.
| OCTZ | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | 0.00 | ||
| Sortino ratioReturn per unit of downside risk | -0.12 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.34 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.72 | 4.72 | -2.00 |
| Martin ratioReturn relative to average drawdown | 11.22 | 14.40 | -3.18 |
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Drawdowns
OCTZ vs. FAAR - Drawdown Comparison
The maximum OCTZ drawdown since its inception was -15.82%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for OCTZ and FAAR.
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Drawdown Indicators
| OCTZ | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.82% | -18.03% | +2.21% |
Max Drawdown (1Y)Largest decline over 1 year | -7.31% | -5.68% | -1.63% |
Max Drawdown (3Y)Largest decline over 3 years | -14.07% | -11.54% | -2.53% |
Max Drawdown (5Y)Largest decline over 5 years | -15.82% | -18.03% | +2.21% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -1.07% | -5.39% | +4.32% |
Average DrawdownAverage peak-to-trough decline | -3.15% | -7.83% | +4.68% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.77% | 1.87% | -0.10% |
Volatility
OCTZ vs. FAAR - Volatility Comparison
TrueShares Structured Outcome (October) ETF (OCTZ) has a higher volatility of 3.89% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.50%. This indicates that OCTZ'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
| OCTZ | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.89% | 2.50% | +1.39% |
Volatility (6M)Calculated over the trailing 6-month period | 8.03% | 9.71% | -1.68% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.92% | 13.36% | -3.44% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.48% | 12.95% | -0.47% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.41% | 11.53% | +0.88% |
OCTZ vs. FAAR - Expense Ratio Comparison
OCTZ has a 0.79% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
OCTZ vs. FAAR - Dividend Comparison
OCTZ's dividend yield for the trailing twelve months is around 3.71%, less than FAAR's 9.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
OCTZ TrueShares Structured Outcome (October) ETF | 3.71% | 3.99% | 1.26% | 3.28% | 0.67% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
OCTZ 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.
OCTZ has higher volatility (3.89%) compared to FAAR (2.50%). In terms of maximum drawdown, OCTZ dropped -15.82% vs FAAR's -18.03%.
On 5-year performance, OCTZ leads with 11.17% vs 8.03% for FAAR. On fees, OCTZ is cheaper at 0.79% per year. On volatility, FAAR has been the lower-risk option at 2.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, OCTZ has performed better with a 11.17% return vs 8.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
OCTZ is cheaper with a 0.79% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 3.71% for OCTZ.
OCTZ is categorized as Defined Outcome, while FAAR is Commodities. They also come from different issuers: TrueShares and First Trust. Their fees differ too: 0.79% for OCTZ and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.01 vs 2.01), 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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