SRHQ vs. FAAR

Last updated Jun 18, 2026

SRHQ (SRH U.S. Quality ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - SRHQ is a Mid Cap Blend Equities fund tracking the SRH US Quality Index - Benchmark TR Gross, while FAAR is a Commodities fund actively managed by First Trust. SRHQ is passively managed, while FAAR is actively managed. Over the past 3 years, SRHQ returned 15.89%/yr vs 10.73%/yr for FAAR. At a correlation of -0.02, they often move in opposite directions. SRHQ charges 0.35%/yr vs 0.95%/yr for FAAR.

Performance

SRHQ vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SRH U.S. Quality ETF (SRHQ) 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, SRHQ achieves a 11.54% return, which is significantly lower than FAAR's 19.91% return.

SRHQ

• 1D: -1.83%
• 1M: 2.03%
• YTD: 11.54%
• 6M: 11.79%
• 1Y: 22.77%
• 3Y*: 15.89%
• 5Y*: —
• 10Y*: —

FAAR

• 1D: -1.40%
• 1M: -5.68%
• YTD: 19.91%
• 6M: 20.17%
• 1Y: 25.60%
• 3Y*: 10.73%
• 5Y*: 7.96%
• 10Y*: 4.67%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SRHQ vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SRHQ SRH U.S. Quality ETF	11.54%	7.34%	16.49%	21.81%	5.22%
FAAR First Trust Alternative Absolute Return Strategy ETF	19.91%	8.07%	5.97%	-5.63%	2.07%

Correlation

The correlation between SRHQ and FAAR is -0.09, 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	-0.09
Correlation (3Y) Calculated over the trailing 3-year period	-0.02
Correlation (All Time) Calculated using the full available price history since Oct 5, 2022	-0.02

Return for Risk

SRHQ vs. FAAR — Risk / Return Rank

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

SRHQ

SRHQ Risk / Return Rank: 57
SRHQ Sharpe Ratio Rank: 47
SRHQ Sortino Ratio Rank: 48
SRHQ Omega Ratio Rank: 44
SRHQ Calmar Ratio Rank: 76
SRHQ Martin Ratio Rank: 72

FAAR

FAAR Risk / Return Rank: 70
FAAR Sharpe Ratio Rank: 62
FAAR Sortino Ratio Rank: 64
FAAR Omega Ratio Rank: 57
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.

SRHQ vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SRH U.S. Quality ETF (SRHQ) 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.

	SRHQ	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	1.55	1.92	-0.38
Sortino ratio: Return per unit of downside risk	2.24	2.77	-0.53
Omega ratio: Gain probability vs. loss probability	1.27	1.33	-0.06
Calmar ratio: Return relative to maximum drawdown	3.63	4.52	-0.90
Martin ratio: Return relative to average drawdown	12.40	13.97	-1.57

SRHQ vs. FAAR - Sharpe Ratio Comparison

The current SRHQ Sharpe Ratio is 1.55, which is comparable to the FAAR Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of SRHQ 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

SRHQ vs. FAAR - Drawdown Comparison

The maximum SRHQ drawdown since its inception was -18.50%, roughly equal to the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for SRHQ and FAAR.

Drawdown Indicators

	SRHQ	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-18.50%	-18.03%	-0.47%
Max Drawdown (1Y) Largest decline over 1 year	-6.31%	-5.68%	-0.63%
Max Drawdown (3Y) Largest decline over 3 years	-18.50%	-11.54%	-6.96%
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	-2.14%	-5.68%	+3.54%
Average Drawdown Average peak-to-trough decline	-3.05%	-7.83%	+4.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.84%	1.87%	-0.03%

Volatility

SRHQ vs. FAAR - Volatility Comparison

SRH U.S. Quality ETF (SRHQ) has a higher volatility of 3.99% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.43%. This indicates that SRHQ'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

	SRHQ	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.99%	2.43%	+1.56%
Volatility (6M) Calculated over the trailing 6-month period	10.83%	9.79%	+1.04%
Volatility (1Y) Calculated over the trailing 1-year period	14.80%	13.39%	+1.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.02%	12.95%	+3.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.02%	11.53%	+4.49%

SRHQ vs. FAAR - Expense Ratio Comparison

SRHQ has a 0.35% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

SRHQ vs. FAAR - Dividend Comparison

SRHQ's dividend yield for the trailing twelve months is around 0.71%, less than FAAR's 9.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.60%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
SRHQ SRH U.S. Quality ETF	0.71%	0.76%	0.66%	0.84%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SRHQ and FAAR in my portfolio?

SRHQ and FAAR have a correlation of -0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SRHQ or FAAR?

SRHQ has higher volatility (3.99%) compared to FAAR (2.43%). In terms of maximum drawdown, SRHQ dropped -18.50% vs FAAR's -18.03%.

Which ETF is better, SRHQ or FAAR?

On 3-year performance, SRHQ leads with 15.89% vs 10.73% for FAAR. On fees, SRHQ is cheaper at 0.35% per year. On volatility, FAAR has been the lower-risk option at 2.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SRHQ or FAAR?

Over the 3-year period, SRHQ has performed better with a 15.89% return vs 10.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SRHQ or FAAR?

SRHQ is cheaper with a 0.35% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.60%, compared with 0.71% for SRHQ.

What is the main difference between SRHQ and FAAR?

SRHQ is categorized as Mid Cap Blend Equities, while FAAR is Commodities. They also come from different issuers: SRH and First Trust. Their fees differ too: 0.35% for SRHQ and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (1.92 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.