TEMT vs. FAAR

Last updated Jun 4, 2026

TEMT (Tradr 2X Long TEM Daily ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TEMT is a Leveraged Equities fund actively managed by Tradr, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past year, TEMT returned -65.86% vs 40.27% for FAAR. At a correlation of -0.01, they often move in opposite directions. TEMT charges 1.30%/yr vs 0.95%/yr for FAAR.

Performance

TEMT vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Tradr 2X Long TEM Daily ETF (TEMT) 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, TEMT achieves a -48.53% return, which is significantly lower than FAAR's 25.13% return.

TEMT

• 1D: -8.68%
• 1M: -30.37%
• YTD: -48.53%
• 6M: -68.84%
• 1Y: -65.86%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAR

• 1D: -0.47%
• 1M: -0.49%
• YTD: 25.13%
• 6M: 21.92%
• 1Y: 40.27%
• 3Y*: 11.68%
• 5Y*: 7.97%
• 10Y*: 5.12%

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

TEMT vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025
TEMT Tradr 2X Long TEM Daily ETF	-48.53%	-51.84%
FAAR First Trust Alternative Absolute Return Strategy ETF	25.13%	11.35%

Correlation

The correlation between TEMT and FAAR is -0.02, 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	-0.02
Correlation (All Time) Calculated using the full available price history since May 14, 2025	-0.01

Return for Risk

TEMT vs. FAAR — Risk / Return Rank

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

TEMT

TEMT Risk / Return Rank: 4
TEMT Sharpe Ratio Rank: 4
TEMT Sortino Ratio Rank: 6
TEMT Omega Ratio Rank: 6
TEMT Calmar Ratio Rank: 3
TEMT Martin Ratio Rank: 4

FAAR

FAAR Risk / Return Rank: 90
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 85
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 92

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.

TEMT vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tradr 2X Long TEM Daily ETF (TEMT) 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.

	TEMT	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	-0.53	3.00	-3.53
Sortino ratio: Return per unit of downside risk	-0.36	4.18	-4.54
Omega ratio: Gain probability vs. loss probability	0.96	1.51	-0.55
Calmar ratio: Return relative to maximum drawdown	-0.76	8.35	-9.11
Martin ratio: Return relative to average drawdown	-1.15	23.34	-24.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TEMT vs. FAAR - Sharpe Ratio Comparison

The current TEMT Sharpe Ratio is -0.53, which is lower than the FAAR Sharpe Ratio of 3.00. The chart below compares the historical Sharpe Ratios of TEMT 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.

Sharpe Ratios by Period

	TEMT	FAAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.53	3.00	-3.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.62	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.45	—
Sharpe Ratio (All Time) Calculated using the full available price history	-0.55	0.44	-0.99

Drawdowns

TEMT vs. FAAR - Drawdown Comparison

The maximum TEMT drawdown since its inception was -87.10%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TEMT and FAAR.

Drawdown Indicators

	TEMT	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-87.10%	-18.03%	-69.07%
Max Drawdown (1Y) Largest decline over 1 year	-87.10%	-4.85%	-82.25%
Max Drawdown (3Y) Largest decline over 3 years	—	-11.54%	—
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	-84.95%	-1.57%	-83.38%
Average Drawdown Average peak-to-trough decline	-48.88%	-7.84%	-41.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	57.16%	1.73%	+55.43%

Volatility

TEMT vs. FAAR - Volatility Comparison

Tradr 2X Long TEM Daily ETF (TEMT) has a higher volatility of 33.66% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.36%. This indicates that TEMT'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

	TEMT	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	33.66%	2.36%	+31.30%
Volatility (6M) Calculated over the trailing 6-month period	84.84%	9.70%	+75.14%
Volatility (1Y) Calculated over the trailing 1-year period	125.64%	13.49%	+112.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	134.15%	13.01%	+121.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	134.15%	11.51%	+122.64%

TEMT vs. FAAR - Expense Ratio Comparison

TEMT has a 1.30% expense ratio, which is higher than FAAR's 0.95% expense ratio.

Dividends

TEMT vs. FAAR - Dividend Comparison

TEMT's dividend yield for the trailing twelve months is around 65.29%, more than FAAR's 9.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.20%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
TEMT Tradr 2X Long TEM Daily ETF	65.29%	33.60%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TEMT and FAAR in my portfolio?

TEMT and FAAR have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TEMT or FAAR?

TEMT has higher volatility (33.66%) compared to FAAR (2.36%). In terms of maximum drawdown, TEMT dropped -87.10% vs FAAR's -18.03%.

Which ETF is better, TEMT or FAAR?

On 1-year performance, FAAR leads with 40.27% vs -65.86% for TEMT. On fees, FAAR is cheaper at 0.95% per year. On volatility, FAAR has been the lower-risk option at 2.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TEMT or FAAR?

Over the 1-year period, FAAR has performed better with a 40.27% return vs -65.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TEMT or FAAR?

FAAR is cheaper with a 0.95% expense ratio, compared with 1.30% for TEMT.

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

TEMT has the higher dividend yield at 65.29%, compared with 9.20% for FAAR.

What is the main difference between TEMT and FAAR?

TEMT is categorized as Leveraged Equities, while FAAR is Commodities. They also come from different issuers: Tradr and First Trust. Their fees differ too: 1.30% for TEMT and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (3.00 vs -0.53), 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.