SPAB vs. FAAR
SPAB (SPDR Portfolio Aggregate Bond ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - SPAB is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while FAAR is a Commodities fund actively managed by First Trust. SPAB is passively managed, while FAAR is actively managed. Over the past 10 years, SPAB returned 1.51%/yr vs 4.69%/yr for FAAR. At a correlation of -0.07, they often move in opposite directions. SPAB charges 0.03%/yr vs 0.95%/yr for FAAR.
Performance
SPAB vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, SPAB achieves a 0.49% return, which is significantly lower than FAAR's 19.14% return. Over the past 10 years, SPAB has underperformed FAAR with an annualized return of 1.51%, while FAAR has yielded a comparatively higher 4.69% annualized return.
SPAB
- 1D
- 0.08%
- 1M
- 0.66%
- YTD
- 0.49%
- 6M
- 0.57%
- 1Y
- 4.29%
- 3Y*
- 3.97%
- 5Y*
- 0.04%
- 10Y*
- 1.51%
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%
SPAB vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SPAB SPDR Portfolio Aggregate Bond ETF | 0.49% | 7.25% | 1.25% | 5.56% | -13.04% | -1.77% | 7.39% | 8.67% | -0.18% | 3.71% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between SPAB and FAAR is -0.27, 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 | -0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.07 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | -0.07 |
Over the past year, the inverse relationship between SPAB and FAAR has strengthened: their correlation has moved from -0.07 to -0.27, meaning they now move in opposite directions more often than their long-term average.
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Return for Risk
SPAB vs. FAAR — Risk / Return Rank
SPAB
FAAR
SPAB vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Aggregate Bond ETF (SPAB) 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.
| SPAB | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.99 | ||
| Sortino ratioReturn per unit of downside risk | -1.35 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.37 | -0.16 |
| Calmar ratioReturn relative to maximum drawdown | 1.57 | 4.52 | -2.95 |
| Martin ratioReturn relative to average drawdown | 4.39 | 15.18 | -10.79 |
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Drawdowns
SPAB vs. FAAR - Drawdown Comparison
The maximum SPAB drawdown since its inception was -18.56%, roughly equal to the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for SPAB and FAAR.
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Drawdown Indicators
| SPAB | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.56% | -18.03% | -0.53% |
Max Drawdown (1Y)Largest decline over 1 year | -2.74% | -6.29% | +3.55% |
Max Drawdown (3Y)Largest decline over 3 years | -6.08% | -11.54% | +5.46% |
Max Drawdown (5Y)Largest decline over 5 years | -17.96% | -18.03% | +0.07% |
Max Drawdown (10Y)Largest decline over 10 years | -18.56% | -18.03% | -0.53% |
Current DrawdownCurrent decline from peak | -2.07% | -6.29% | +4.22% |
Average DrawdownAverage peak-to-trough decline | -3.08% | -7.82% | +4.74% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 1.87% | -0.89% |
Volatility
SPAB vs. FAAR - Volatility Comparison
The current volatility for SPDR Portfolio Aggregate Bond ETF (SPAB) is 1.09%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.55%. This indicates that SPAB experiences smaller price fluctuations and is considered to be less risky 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
| SPAB | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.09% | 2.55% | -1.46% |
Volatility (6M)Calculated over the trailing 6-month period | 2.69% | 9.68% | -6.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.73% | 13.38% | -9.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.93% | 12.96% | -7.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.55% | 11.54% | -5.99% |
SPAB vs. FAAR - Expense Ratio Comparison
SPAB has a 0.03% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
SPAB vs. FAAR - Dividend Comparison
SPAB's dividend yield for the trailing twelve months is around 4.04%, less than FAAR's 9.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% | 0.00% |
SPAB SPDR Portfolio Aggregate Bond ETF | 4.04% | 3.97% | 3.86% | 3.34% | 2.59% | 2.11% | 2.43% | 2.92% | 2.96% | 2.67% | 2.63% | 2.59% |
Frequently Asked Questions
SPAB and FAAR have a correlation of -0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.55%) compared to SPAB (1.09%). In terms of maximum drawdown, SPAB dropped -18.56% vs FAAR's -18.03%.
On 10-year performance, FAAR leads with 4.69% vs 1.51% for SPAB. On fees, SPAB is cheaper at 0.03% per year. On volatility, SPAB has been the lower-risk option at 1.09%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FAAR has performed better with a 4.69% return vs 1.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPAB is cheaper with a 0.03% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 4.04% for SPAB.
SPAB is categorized as Total Bond Market, while FAAR is Commodities. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.03% for SPAB and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.16), 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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