SPAQ vs. FAAR
SPAQ (Horizon Kinetics SPAC Active ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - SPAQ is a Health & Biotech Equities fund actively managed by Horizon, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, SPAQ returned 5.98%/yr vs 10.57%/yr for FAAR. At a correlation of -0.01, they often move in opposite directions. SPAQ charges 0.85%/yr vs 0.95%/yr for FAAR.
Performance
SPAQ vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, SPAQ achieves a 3.35% return, which is significantly lower than FAAR's 19.14% return.
SPAQ
- 1D
- -0.20%
- 1M
- 1.41%
- YTD
- 3.35%
- 6M
- 2.27%
- 1Y
- 4.10%
- 3Y*
- 5.98%
- 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%
SPAQ vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
SPAQ Horizon Kinetics SPAC Active ETF | 3.35% | 7.35% | 4.33% | 5.32% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.47% |
Correlation
The correlation between SPAQ and FAAR is -0.14, 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 | -0.14 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.01 |
Correlation (All Time) Calculated using the full available price history since Jan 30, 2023 | -0.01 |
The correlation between SPAQ and FAAR shifts across timeframes, from -0.14 (1 year) to -0.01 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
SPAQ vs. FAAR — Risk / Return Rank
SPAQ
FAAR
SPAQ vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Horizon Kinetics SPAC Active ETF (SPAQ) 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.
| SPAQ | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.68 | ||
| Sortino ratioReturn per unit of downside risk | -2.38 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.37 | -0.26 |
| Calmar ratioReturn relative to maximum drawdown | 0.82 | 4.52 | -3.70 |
| Martin ratioReturn relative to average drawdown | 2.97 | 15.18 | -12.21 |
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Drawdowns
SPAQ vs. FAAR - Drawdown Comparison
The maximum SPAQ drawdown since its inception was -5.30%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for SPAQ and FAAR.
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Drawdown Indicators
| SPAQ | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.30% | -18.03% | +12.73% |
Max Drawdown (1Y)Largest decline over 1 year | -5.00% | -6.29% | +1.29% |
Max Drawdown (3Y)Largest decline over 3 years | -5.30% | -11.54% | +6.24% |
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 | -0.32% | -6.29% | +5.97% |
Average DrawdownAverage peak-to-trough decline | -0.53% | -7.82% | +7.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.39% | 1.87% | -0.48% |
Volatility
SPAQ vs. FAAR - Volatility Comparison
The current volatility for Horizon Kinetics SPAC Active ETF (SPAQ) is 1.02%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.55%. This indicates that SPAQ 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
| SPAQ | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.02% | 2.55% | -1.53% |
Volatility (6M)Calculated over the trailing 6-month period | 5.06% | 9.68% | -4.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.65% | 13.38% | -4.73% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.96% | 12.96% | -6.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.96% | 11.54% | -4.58% |
SPAQ vs. FAAR - Expense Ratio Comparison
SPAQ has a 0.85% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
SPAQ vs. FAAR - Dividend Comparison
SPAQ's dividend yield for the trailing twelve months is around 16.15%, more 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% |
SPAQ Horizon Kinetics SPAC Active ETF | 16.15% | 16.69% | 3.00% | 2.60% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
SPAQ and FAAR have a correlation of -0.14, 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 SPAQ (1.02%). In terms of maximum drawdown, SPAQ dropped -5.30% vs FAAR's -18.03%.
On 3-year performance, FAAR leads with 10.57% vs 5.98% for SPAQ. On fees, SPAQ is cheaper at 0.85% per year. On volatility, SPAQ has been the lower-risk option at 1.02%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, FAAR has performed better with a 10.57% return vs 5.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPAQ is cheaper with a 0.85% expense ratio, compared with 0.95% for FAAR.
SPAQ has the higher dividend yield at 16.15%, compared with 9.66% for FAAR.
SPAQ is categorized as Health & Biotech Equities, while FAAR is Commodities. They also come from different issuers: Horizon and First Trust. Their fees differ too: 0.85% for SPAQ and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 0.48), 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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