PINK vs. FAAR
PINK (Simplify Health Care ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - PINK is a Health & Biotech Equities fund actively managed by Simplify, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, PINK returned 13.33%/yr vs 10.57%/yr for FAAR. At a correlation of -0.04, they often move in opposite directions. PINK charges 0.50%/yr vs 0.95%/yr for FAAR.
Performance
PINK vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, PINK achieves a 3.02% return, which is significantly lower than FAAR's 19.14% return.
PINK
- 1D
- 0.59%
- 1M
- 2.14%
- YTD
- 3.02%
- 6M
- 2.13%
- 1Y
- 28.62%
- 3Y*
- 13.33%
- 5Y*
- —
- 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%
PINK vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
PINK Simplify Health Care ETF | 3.02% | 24.34% | 8.81% | 3.80% | -4.41% | 11.45% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | -2.17% |
Correlation
The correlation between PINK and FAAR is -0.16, 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 | -0.16 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.06 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2021 | -0.04 |
The correlation between PINK and FAAR shifts across timeframes, from -0.16 (1 year) to -0.04 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
PINK vs. FAAR — Risk / Return Rank
PINK
FAAR
PINK vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Simplify Health Care ETF (PINK) 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.
| PINK | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.60 | ||
| Sortino ratioReturn per unit of downside risk | -0.83 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.37 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.71 | 4.52 | -2.81 |
| Martin ratioReturn relative to average drawdown | 5.11 | 15.18 | -10.07 |
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Drawdowns
PINK vs. FAAR - Drawdown Comparison
The maximum PINK drawdown since its inception was -18.77%, roughly equal to the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for PINK and FAAR.
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Drawdown Indicators
| PINK | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.77% | -18.03% | -0.74% |
Max Drawdown (1Y)Largest decline over 1 year | -16.81% | -6.29% | -10.52% |
Max Drawdown (3Y)Largest decline over 3 years | -18.77% | -11.54% | -7.23% |
Max Drawdown (5Y)Largest decline over 5 years | — | -18.03% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -2.24% | -6.29% | +4.05% |
Average DrawdownAverage peak-to-trough decline | -6.71% | -7.82% | +1.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.62% | 1.87% | +3.75% |
Volatility
PINK vs. FAAR - Volatility Comparison
Simplify Health Care ETF (PINK) has a higher volatility of 5.50% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that PINK'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
| PINK | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.50% | 2.55% | +2.95% |
Volatility (6M)Calculated over the trailing 6-month period | 13.83% | 9.68% | +4.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.53% | 13.38% | +5.15% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.59% | 12.96% | +4.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.59% | 11.54% | +6.05% |
PINK vs. FAAR - Expense Ratio Comparison
PINK has a 0.50% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
PINK vs. FAAR - Dividend Comparison
PINK's dividend yield for the trailing twelve months is around 0.66%, 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% |
PINK Simplify Health Care ETF | 0.66% | 0.68% | 0.32% | 0.94% | 0.42% | 0.04% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
PINK and FAAR have a correlation of -0.16, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PINK has higher volatility (5.50%) compared to FAAR (2.55%). In terms of maximum drawdown, PINK dropped -18.77% vs FAAR's -18.03%.
On 3-year performance, PINK leads with 13.33% vs 10.57% for FAAR. On fees, PINK is cheaper at 0.50% 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 3-year period, PINK has performed better with a 13.33% return vs 10.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PINK is cheaper with a 0.50% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 0.66% for PINK.
PINK is categorized as Health & Biotech Equities, while FAAR is Commodities. They also come from different issuers: Simplify and First Trust. Their fees differ too: 0.50% for PINK and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.55), 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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