TBJL vs. FAAR
TBJL (Innovator 20+ Year Treasury Bond Buffer ETF – July) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TBJL is a Defined Outcome fund tracking the iShares 20+ Year Treasury Bond ETF, while FAAR is a Commodities fund actively managed by First Trust. TBJL is passively managed, while FAAR is actively managed. Over the past 5 years, TBJL returned -3.58%/yr vs 7.89%/yr for FAAR. At a correlation of -0.10, they often move in opposite directions. TBJL charges 0.79%/yr vs 0.95%/yr for FAAR.
Performance
TBJL vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, TBJL achieves a -0.40% return, which is significantly lower than FAAR's 20.23% return.
TBJL
- 1D
- 0.13%
- 1M
- 0.33%
- YTD
- -0.40%
- 6M
- -0.30%
- 1Y
- -0.80%
- 3Y*
- -1.54%
- 5Y*
- -3.58%
- 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%
TBJL vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
TBJL Innovator 20+ Year Treasury Bond Buffer ETF – July | -0.40% | 1.74% | -3.16% | 4.12% | -20.82% | -0.32% | -1.68% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 4.24% |
Correlation
The correlation between TBJL and FAAR is -0.28, 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 | -0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.10 |
Correlation (All Time) Calculated using the full available price history since Aug 18, 2020 | -0.10 |
The correlation between TBJL and FAAR shifts across timeframes, from -0.28 (1 year) to -0.10 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
TBJL vs. FAAR — Risk / Return Rank
TBJL
FAAR
TBJL vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Innovator 20+ Year Treasury Bond Buffer ETF – July (TBJL) 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.
| TBJL | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.16 | ||
| Sortino ratioReturn per unit of downside risk | -3.04 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.35 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | -0.18 | 4.75 | -4.93 |
| Martin ratioReturn relative to average drawdown | -0.31 | 14.70 | -15.00 |
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Drawdowns
TBJL vs. FAAR - Drawdown Comparison
The maximum TBJL drawdown since its inception was -29.36%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TBJL and FAAR.
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Drawdown Indicators
| TBJL | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.36% | -18.03% | -11.33% |
Max Drawdown (1Y)Largest decline over 1 year | -4.46% | -5.68% | +1.22% |
Max Drawdown (3Y)Largest decline over 3 years | -15.01% | -11.54% | -3.47% |
Max Drawdown (5Y)Largest decline over 5 years | -28.57% | -18.03% | -10.54% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -20.90% | -5.43% | -15.47% |
Average DrawdownAverage peak-to-trough decline | -15.66% | -7.82% | -7.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.62% | 1.89% | +0.73% |
Volatility
TBJL vs. FAAR - Volatility Comparison
The current volatility for Innovator 20+ Year Treasury Bond Buffer ETF – July (TBJL) is 0.50%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.47%. This indicates that TBJL 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
| TBJL | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.50% | 2.47% | -1.97% |
Volatility (6M)Calculated over the trailing 6-month period | 3.13% | 9.68% | -6.55% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.92% | 13.37% | -7.45% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.81% | 12.95% | -2.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.62% | 11.53% | -0.91% |
TBJL vs. FAAR - Expense Ratio Comparison
TBJL has a 0.79% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
TBJL vs. FAAR - Dividend Comparison
TBJL has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.57%.
| 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% |
TBJL Innovator 20+ Year Treasury Bond Buffer ETF – July | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TBJL and FAAR have a correlation of -0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.47%) compared to TBJL (0.50%). In terms of maximum drawdown, TBJL dropped -29.36% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.89% vs -3.58% for TBJL. On fees, TBJL is cheaper at 0.79% per year. On volatility, TBJL has been the lower-risk option at 0.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, FAAR has performed better with a 7.89% return vs -3.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TBJL is cheaper with a 0.79% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.00% for TBJL.
TBJL is categorized as Defined Outcome, while FAAR is Commodities. They also come from different issuers: Innovator and First Trust. Their fees differ too: 0.79% for TBJL and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs -0.14), 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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