RAVI vs. FALN
RAVI (FlexShares Ultra-Short Income ETF) and FALN (iShares Fallen Angels USD Bond ETF) are both exchange-traded funds - RAVI is a Ultrashort Bond fund actively managed by FlexShares, while FALN is a High Yield Bonds fund tracking the Bloomberg US High Yield Fallen Angel 3% Capped Index. RAVI is actively managed, while FALN is passively managed. Over the past 10 years, RAVI returned 2.67%/yr vs 6.60%/yr for FALN. At a 0.17 correlation, their price movements are largely independent. Both charge a 0.25% expense ratio.
Performance
RAVI vs. FALN - Performance Comparison
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Returns By Period
In the year-to-date period, RAVI achieves a 1.64% return, which is significantly lower than FALN's 2.24% return. Over the past 10 years, RAVI has underperformed FALN with an annualized return of 2.67%, while FALN has yielded a comparatively higher 6.60% annualized return.
RAVI
- 1D
- -0.01%
- 1M
- 0.25%
- YTD
- 1.64%
- 6M
- 1.77%
- 1Y
- 4.35%
- 3Y*
- 5.16%
- 5Y*
- 3.53%
- 10Y*
- 2.67%
FALN
- 1D
- -0.11%
- 1M
- 1.07%
- YTD
- 2.24%
- 6M
- 2.46%
- 1Y
- 7.88%
- 3Y*
- 9.39%
- 5Y*
- 3.76%
- 10Y*
- 6.60%
RAVI vs. FALN - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
RAVI FlexShares Ultra-Short Income ETF | 1.64% | 4.98% | 5.67% | 5.55% | 0.15% | -0.04% | 2.06% | 3.49% | 1.65% | 1.22% |
FALN iShares Fallen Angels USD Bond ETF | 2.24% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
Correlation
The correlation between RAVI and FALN is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.32 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.30 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.17 |
Correlation (All Time) Calculated using the full available price history since Jun 17, 2016 | 0.17 |
The correlation between RAVI and FALN shifts across timeframes, from 0.17 (all time) to 0.32 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
RAVI vs. FALN — Risk / Return Rank
RAVI
FALN
RAVI vs. FALN - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Ultra-Short Income ETF (RAVI) and iShares Fallen Angels USD Bond ETF (FALN). 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.
| RAVI | FALN | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +9.00 | ||
| Sortino ratioReturn per unit of downside risk | +20.89 | ||
| Omega ratioGain probability vs. loss probability | 5.22 | 1.33 | +3.89 |
| Calmar ratioReturn relative to maximum drawdown | 37.38 | 2.00 | +35.38 |
| Martin ratioReturn relative to average drawdown | 214.13 | 8.32 | +205.80 |
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Drawdowns
RAVI vs. FALN - Drawdown Comparison
The maximum RAVI drawdown since its inception was -3.72%, smaller than the maximum FALN drawdown of -29.22%. Use the drawdown chart below to compare losses from any high point for RAVI and FALN.
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Drawdown Indicators
| RAVI | FALN | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -3.72% | -29.22% | +25.50% |
Max Drawdown (1Y)Largest decline over 1 year | -0.12% | -3.96% | +3.84% |
Max Drawdown (3Y)Largest decline over 3 years | -0.36% | -5.92% | +5.56% |
Max Drawdown (5Y)Largest decline over 5 years | -3.28% | -18.78% | +15.50% |
Max Drawdown (10Y)Largest decline over 10 years | -3.72% | -29.22% | +25.50% |
Current DrawdownCurrent decline from peak | -0.03% | -0.11% | +0.08% |
Average DrawdownAverage peak-to-trough decline | -0.17% | -3.31% | +3.14% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.02% | 0.95% | -0.93% |
Volatility
RAVI vs. FALN - Volatility Comparison
The current volatility for FlexShares Ultra-Short Income ETF (RAVI) is 0.13%, while iShares Fallen Angels USD Bond ETF (FALN) has a volatility of 1.18%. This indicates that RAVI experiences smaller price fluctuations and is considered to be less risky than FALN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RAVI | FALN | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.13% | 1.18% | -1.05% |
Volatility (6M)Calculated over the trailing 6-month period | 0.31% | 3.73% | -3.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 0.41% | 4.60% | -4.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 1.41% | 7.33% | -5.92% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 1.28% | 8.94% | -7.66% |
RAVI vs. FALN - Expense Ratio Comparison
Both RAVI and FALN have an expense ratio of 0.25%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
RAVI vs. FALN - Dividend Comparison
RAVI's dividend yield for the trailing twelve months is around 4.38%, less than FALN's 6.42% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 6.42% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% |
RAVI FlexShares Ultra-Short Income ETF | 4.38% | 4.59% | 5.34% | 4.55% | 1.70% | 0.90% | 1.29% | 2.53% | 2.22% | 1.28% | 0.90% |
Frequently Asked Questions
RAVI and FALN have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FALN has higher volatility (1.18%) compared to RAVI (0.13%). In terms of maximum drawdown, RAVI dropped -3.72% vs FALN's -29.22%.
On 10-year performance, FALN leads with 6.60% vs 2.67% for RAVI. Both ETFs have the same 0.25% expense ratio. On volatility, RAVI has been the lower-risk option at 0.13%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FALN has performed better with a 6.60% return vs 2.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
RAVI and FALN have the same expense ratio: 0.25% per year.
FALN has the higher dividend yield at 6.42%, compared with 4.38% for RAVI.
RAVI is categorized as Ultrashort Bond, while FALN is High Yield Bonds. They also come from different issuers: FlexShares and iShares.
RAVI currently has the higher Sharpe Ratio (10.72 vs 1.72), 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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