PBL vs. FAAR

Last updated Jun 23, 2026

PBL (PGIM Portfolio Ballast ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - PBL is a Diversified Portfolio fund actively managed by PGIM, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, PBL returned 14.40%/yr vs 10.91%/yr for FAAR. At a correlation of -0.02, they often move in opposite directions. PBL charges 0.45%/yr vs 0.95%/yr for FAAR.

Performance

PBL vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PGIM Portfolio Ballast ETF (PBL) 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, PBL achieves a 7.15% return, which is significantly lower than FAAR's 20.23% return.

PBL

• 1D: -0.17%
• 1M: 0.73%
• YTD: 7.15%
• 6M: 6.87%
• 1Y: 18.53%
• 3Y*: 14.40%
• 5Y*: —
• 10Y*: —

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%

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

PBL vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
PBL PGIM Portfolio Ballast ETF	7.15%	12.35%	16.70%	14.28%	-4.02%
FAAR First Trust Alternative Absolute Return Strategy ETF	20.23%	8.07%	5.97%	-5.63%	3.30%

Correlation

The correlation between PBL and FAAR is -0.12, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.12
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
Correlation (All Time) Calculated using the full available price history since Dec 14, 2022	-0.02

The correlation between PBL and FAAR shifts across timeframes, from -0.12 (1 year) to -0.01 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

PBL vs. FAAR — Risk / Return Rank

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

PBL

PBL Risk / Return Rank: 64
PBL Sharpe Ratio Rank: 62
PBL Sortino Ratio Rank: 62
PBL Omega Ratio Rank: 59
PBL Calmar Ratio Rank: 66
PBL Martin Ratio Rank: 70

FAAR

FAAR Risk / Return Rank: 70
FAAR Sharpe Ratio Rank: 64
FAAR Sortino Ratio Rank: 65
FAAR Omega Ratio Rank: 58
FAAR Calmar Ratio Rank: 87
FAAR Martin Ratio Rank: 78

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.

PBL vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Portfolio Ballast ETF (PBL) 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.

	PBL	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.02	-0.02
Sortino ratio: Return per unit of downside risk	2.81	2.89	-0.08
Omega ratio: Gain probability vs. loss probability	1.35	1.35	+0.01
Calmar ratio: Return relative to maximum drawdown	3.20	4.75	-1.55
Martin ratio: Return relative to average drawdown	12.53	14.70	-2.16

PBL vs. FAAR - Sharpe Ratio Comparison

The current PBL Sharpe Ratio is 2.00, which is comparable to the FAAR Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of PBL 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.

Drawdowns

PBL vs. FAAR - Drawdown Comparison

The maximum PBL drawdown since its inception was -11.69%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for PBL and FAAR.

Drawdown Indicators

	PBL	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-11.69%	-18.03%	+6.34%
Max Drawdown (1Y) Largest decline over 1 year	-5.82%	-5.68%	-0.14%
Max Drawdown (3Y) Largest decline over 3 years	-11.69%	-11.54%	-0.15%
Max Drawdown (5Y) Largest decline over 5 years	—	-18.03%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-0.90%	-5.43%	+4.53%
Average Drawdown Average peak-to-trough decline	-1.66%	-7.82%	+6.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.48%	1.89%	-0.41%

Volatility

PBL vs. FAAR - Volatility Comparison

PGIM Portfolio Ballast ETF (PBL) has a higher volatility of 3.41% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that PBL'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

	PBL	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.41%	2.47%	+0.94%
Volatility (6M) Calculated over the trailing 6-month period	7.06%	9.68%	-2.62%
Volatility (1Y) Calculated over the trailing 1-year period	9.33%	13.37%	-4.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.91%	12.95%	-3.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.91%	11.53%	-1.62%

PBL vs. FAAR - Expense Ratio Comparison

PBL has a 0.45% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

PBL vs. FAAR - Dividend Comparison

PBL's dividend yield for the trailing twelve months is around 2.07%, 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%
PBL PGIM Portfolio Ballast ETF	2.07%	2.21%	6.89%	7.92%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PBL and FAAR in my portfolio?

PBL and FAAR have a correlation of -0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PBL or FAAR?

PBL has higher volatility (3.41%) compared to FAAR (2.47%). In terms of maximum drawdown, PBL dropped -11.69% vs FAAR's -18.03%.

Which ETF is better, PBL or FAAR?

On 3-year performance, PBL leads with 14.40% vs 10.91% for FAAR. On fees, PBL is cheaper at 0.45% 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.

Which ETF has performed better, PBL or FAAR?

Over the 3-year period, PBL has performed better with a 14.40% return vs 10.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PBL or FAAR?

PBL is cheaper with a 0.45% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.57%, compared with 2.07% for PBL.

What is the main difference between PBL and FAAR?

PBL is categorized as Diversified Portfolio, while FAAR is Commodities. They also come from different issuers: PGIM and First Trust. Their fees differ too: 0.45% for PBL and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (2.02 vs 2.00), 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.