SMIG vs. FAAR

Last updated Jun 23, 2026

SMIG (Bahl & Gaynor Small/Mid Cap Income Growth ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - SMIG is a Small Cap Value Equities fund actively managed by Bahl & Gaynor, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, SMIG returned 13.63%/yr vs 10.91%/yr for FAAR. At a 0.01 correlation, their price movements are largely independent. SMIG charges 0.60%/yr vs 0.95%/yr for FAAR.

Performance

SMIG vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG) 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, SMIG achieves a 13.12% return, which is significantly lower than FAAR's 20.23% return.

SMIG

• 1D: 0.78%
• 1M: 1.50%
• YTD: 13.12%
• 6M: 11.92%
• 1Y: 15.97%
• 3Y*: 13.63%
• 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)

SMIG vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
SMIG Bahl & Gaynor Small/Mid Cap Income Growth ETF	13.12%	0.78%	17.63%	13.62%	-11.83%	5.23%
FAAR First Trust Alternative Absolute Return Strategy ETF	20.23%	8.07%	5.97%	-5.63%	10.15%	3.26%

Correlation

The correlation between SMIG and FAAR is -0.07, 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	-0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.00
Correlation (All Time) Calculated using the full available price history since Aug 26, 2021	0.01

Return for Risk

SMIG vs. FAAR — Risk / Return Rank

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

SMIG

SMIG Risk / Return Rank: 38
SMIG Sharpe Ratio Rank: 38
SMIG Sortino Ratio Rank: 41
SMIG Omega Ratio Rank: 35
SMIG Calmar Ratio Rank: 39
SMIG Martin Ratio Rank: 34

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.

SMIG vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG) 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.

	SMIG	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	1.33	2.02	-0.69
Sortino ratio: Return per unit of downside risk	2.02	2.89	-0.87
Omega ratio: Gain probability vs. loss probability	1.23	1.35	-0.11
Calmar ratio: Return relative to maximum drawdown	1.88	4.75	-2.87
Martin ratio: Return relative to average drawdown	4.89	14.70	-9.81

SMIG vs. FAAR - Sharpe Ratio Comparison

The current SMIG Sharpe Ratio is 1.33, which is lower than the FAAR Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of SMIG 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

SMIG vs. FAAR - Drawdown Comparison

The maximum SMIG drawdown since its inception was -19.65%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for SMIG and FAAR.

Drawdown Indicators

	SMIG	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-19.65%	-18.03%	-1.62%
Max Drawdown (1Y) Largest decline over 1 year	-8.52%	-5.68%	-2.84%
Max Drawdown (3Y) Largest decline over 3 years	-19.23%	-11.54%	-7.69%
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	0.00%	-5.43%	+5.43%
Average Drawdown Average peak-to-trough decline	-6.49%	-7.82%	+1.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	1.89%	+1.38%

Volatility

SMIG vs. FAAR - Volatility Comparison

Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG) has a higher volatility of 3.61% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that SMIG'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

	SMIG	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.61%	2.47%	+1.14%
Volatility (6M) Calculated over the trailing 6-month period	8.47%	9.68%	-1.21%
Volatility (1Y) Calculated over the trailing 1-year period	12.08%	13.37%	-1.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.16%	12.95%	+3.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.16%	11.53%	+4.63%

SMIG vs. FAAR - Expense Ratio Comparison

SMIG has a 0.60% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

SMIG vs. FAAR - Dividend Comparison

SMIG's dividend yield for the trailing twelve months is around 1.70%, 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%
SMIG Bahl & Gaynor Small/Mid Cap Income Growth ETF	1.70%	1.82%	1.75%	1.91%	2.00%	0.50%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMIG and FAAR in my portfolio?

SMIG and FAAR have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SMIG or FAAR?

SMIG has higher volatility (3.61%) compared to FAAR (2.47%). In terms of maximum drawdown, SMIG dropped -19.65% vs FAAR's -18.03%.

Which ETF is better, SMIG or FAAR?

On 3-year performance, SMIG leads with 13.63% vs 10.91% for FAAR. On fees, SMIG is cheaper at 0.60% 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, SMIG or FAAR?

Over the 3-year period, SMIG has performed better with a 13.63% return vs 10.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SMIG or FAAR?

SMIG is cheaper with a 0.60% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.57%, compared with 1.70% for SMIG.

What is the main difference between SMIG and FAAR?

SMIG is categorized as Small Cap Value Equities, while FAAR is Commodities. They also come from different issuers: Bahl & Gaynor and First Trust. Their fees differ too: 0.60% for SMIG and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (2.02 vs 1.33), 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.