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 -4.28%/yr vs 6.81%/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 -3.24% return, which is significantly lower than FAAR's 15.77% return.
TBJL
- 1D
- -0.08%
- 1M
- -2.73%
- 6M
- -3.50%
- YTD
- -3.24%
- 1Y
- -0.94%
- 3Y*
- -1.08%
- 5Y*
- -4.28%
- 10Y*
- —
FAAR
- 1D
- -0.63%
- 1M
- -5.61%
- 6M
- 13.29%
- YTD
- 15.77%
- 1Y
- 21.06%
- 3Y*
- 9.16%
- 5Y*
- 6.81%
- 10Y*
- 4.24%
TBJL vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
TBJL Innovator 20+ Year Treasury Bond Buffer ETF – July | -3.24% | 1.74% | -3.16% | 4.12% | -20.82% | -0.32% | -1.68% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 15.77% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 4.24% |
Correlation
The correlation between TBJL and FAAR is -0.26, 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 | -0.26 |
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 -0.26 (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 | -2.12 | ||
| Sortino ratioReturn per unit of downside risk | -3.02 | ||
| Omega ratioGain probability vs. loss probability | 0.95 | 1.31 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | -0.31 | 2.61 | -2.92 |
| Martin ratioReturn relative to average drawdown | -0.72 | 9.12 | -9.84 |
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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 | -6.41% | -8.94% | +2.53% |
Max Drawdown (3Y)Largest decline over 3 years | -13.49% | -11.54% | -1.95% |
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 | -23.15% | -8.94% | -14.21% |
Average DrawdownAverage peak-to-trough decline | -15.71% | -7.82% | -7.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.76% | 2.55% | +0.21% |
Volatility
TBJL vs. FAAR - Volatility Comparison
The current volatility for Innovator 20+ Year Treasury Bond Buffer ETF – July (TBJL) is 2.05%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.63%. 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 | 2.05% | 2.63% | -0.58% |
Volatility (6M)Calculated over the trailing 6-month period | 3.57% | 9.81% | -6.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.08% | 13.05% | -6.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.79% | 12.93% | -2.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.61% | 11.55% | -0.94% |
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 9.89%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.89% | 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 -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.63%) compared to TBJL (2.05%). In terms of maximum drawdown, TBJL dropped -29.36% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 6.81% vs -4.28% for TBJL. On fees, TBJL is cheaper at 0.79% per year. On volatility, TBJL has been the lower-risk option at 2.05%. 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 6.81% return vs -4.28%. 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 9.89%, 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 (1.79 vs -0.33), 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.
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