OVS vs. FAAR
OVS (Overlay Shares Small Cap Equity ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - OVS is a Small Cap Blend Equities fund actively managed by Liquid Strategies, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 5 years, OVS returned 6.48%/yr vs 7.72%/yr for FAAR. At a 0.08 correlation, their price movements are largely independent. OVS charges 0.83%/yr vs 0.95%/yr for FAAR.
Performance
OVS vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, OVS achieves a 20.91% return, which is significantly higher than FAAR's 19.14% return.
OVS
- 1D
- -0.41%
- 1M
- 3.73%
- YTD
- 20.91%
- 6M
- 18.05%
- 1Y
- 38.42%
- 3Y*
- 17.64%
- 5Y*
- 6.48%
- 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%
OVS vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
OVS Overlay Shares Small Cap Equity ETF | 20.91% | 6.15% | 11.07% | 17.20% | -19.99% | 30.15% | 12.16% | 9.35% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -0.09% |
Correlation
The correlation between OVS and FAAR is -0.04, 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 | -0.04 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.05 |
Correlation (All Time) Calculated using the full available price history since Oct 1, 2019 | 0.08 |
The correlation between OVS and FAAR shifts across timeframes, from -0.04 (1 year) to 0.08 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
OVS vs. FAAR — Risk / Return Rank
OVS
FAAR
OVS vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Small Cap Equity ETF (OVS) 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.
| OVS | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.17 | ||
| Sortino ratioReturn per unit of downside risk | -0.27 | ||
| Omega ratioGain probability vs. loss probability | 1.34 | 1.37 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 4.54 | 4.52 | +0.01 |
| Martin ratioReturn relative to average drawdown | 14.73 | 15.18 | -0.45 |
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Drawdowns
OVS vs. FAAR - Drawdown Comparison
The maximum OVS drawdown since its inception was -45.09%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for OVS and FAAR.
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Drawdown Indicators
| OVS | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -45.09% | -18.03% | -27.06% |
Max Drawdown (1Y)Largest decline over 1 year | -8.51% | -6.29% | -2.22% |
Max Drawdown (3Y)Largest decline over 3 years | -30.49% | -11.54% | -18.95% |
Max Drawdown (5Y)Largest decline over 5 years | -30.49% | -18.03% | -12.46% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -0.63% | -6.29% | +5.66% |
Average DrawdownAverage peak-to-trough decline | -11.27% | -7.82% | -3.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.61% | 1.87% | +0.74% |
Volatility
OVS vs. FAAR - Volatility Comparison
Overlay Shares Small Cap Equity ETF (OVS) has a higher volatility of 5.30% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that OVS'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
| OVS | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.30% | 2.55% | +2.75% |
Volatility (6M)Calculated over the trailing 6-month period | 13.42% | 9.68% | +3.74% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.47% | 13.38% | +6.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.24% | 12.96% | +10.28% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.42% | 11.54% | +15.88% |
OVS vs. FAAR - Expense Ratio Comparison
OVS has a 0.83% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
OVS vs. FAAR - Dividend Comparison
OVS's dividend yield for the trailing twelve months is around 6.64%, 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% |
OVS Overlay Shares Small Cap Equity ETF | 6.64% | 3.69% | 4.08% | 3.19% | 3.43% | 4.05% | 1.74% | 0.54% | 0.00% | 0.00% |
Frequently Asked Questions
OVS and FAAR have a correlation of -0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
OVS has higher volatility (5.30%) compared to FAAR (2.55%). In terms of maximum drawdown, OVS dropped -45.09% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.72% vs 6.48% for OVS. On fees, OVS is cheaper at 0.83% 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 6.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
OVS is cheaper with a 0.83% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 6.64% for OVS.
OVS is categorized as Small Cap Blend Equities, while FAAR is Commodities. They also come from different issuers: Liquid Strategies and First Trust. Their fees differ too: 0.83% for OVS and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.99), 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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