TLTI vs. FAAR

Last updated Jun 23, 2026

TLTI (NEOS Enhanced Income 20+ Year Treasury Bond ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TLTI is a Derivative Income fund actively managed by NEOS Investments, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past year, TLTI returned 5.82% vs 26.86% for FAAR. At a correlation of -0.20, they often move in opposite directions. TLTI charges 0.58%/yr vs 0.95%/yr for FAAR.

Performance

TLTI vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NEOS Enhanced Income 20+ Year Treasury Bond ETF (TLTI) 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, TLTI achieves a 1.73% return, which is significantly lower than FAAR's 20.23% return.

TLTI

• 1D: -0.64%
• 1M: 2.16%
• YTD: 1.73%
• 6M: 1.60%
• 1Y: 5.82%
• 3Y*: —
• 5Y*: —
• 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%

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

TLTI vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024
TLTI NEOS Enhanced Income 20+ Year Treasury Bond ETF	1.73%	4.31%	-5.46%
FAAR First Trust Alternative Absolute Return Strategy ETF	20.23%	8.07%	-0.05%

Correlation

The correlation between TLTI and FAAR is -0.29, 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	-0.29
Correlation (All Time) Calculated using the full available price history since Dec 11, 2024	-0.20

Return for Risk

TLTI vs. FAAR — Risk / Return Rank

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

TLTI

TLTI Risk / Return Rank: 18
TLTI Sharpe Ratio Rank: 19
TLTI Sortino Ratio Rank: 18
TLTI Omega Ratio Rank: 16
TLTI Calmar Ratio Rank: 20
TLTI Martin Ratio Rank: 19

FAAR

FAAR Risk / Return Rank: 70
FAAR Sharpe Ratio Rank: 64
FAAR Sortino Ratio Rank: 65
FAAR Omega Ratio Rank: 58
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.

TLTI vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NEOS Enhanced Income 20+ Year Treasury Bond ETF (TLTI) 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.

	TLTI	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	0.63	2.02	-1.39
Sortino ratio: Return per unit of downside risk	0.97	2.89	-1.92
Omega ratio: Gain probability vs. loss probability	1.11	1.35	-0.24
Calmar ratio: Return relative to maximum drawdown	0.88	4.75	-3.86
Martin ratio: Return relative to average drawdown	2.08	14.70	-12.62

TLTI vs. FAAR - Sharpe Ratio Comparison

The current TLTI Sharpe Ratio is 0.63, which is lower than the FAAR Sharpe Ratio of 2.02. The chart below compares the historical Sharpe Ratios of TLTI 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

TLTI vs. FAAR - Drawdown Comparison

The maximum TLTI drawdown since its inception was -8.70%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TLTI and FAAR.

Drawdown Indicators

	TLTI	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-8.70%	-18.03%	+9.33%
Max Drawdown (1Y) Largest decline over 1 year	-6.60%	-5.68%	-0.92%
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	-2.84%	-5.43%	+2.59%
Average Drawdown Average peak-to-trough decline	-3.61%	-7.82%	+4.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.81%	1.89%	+0.92%

Volatility

TLTI vs. FAAR - Volatility Comparison

NEOS Enhanced Income 20+ Year Treasury Bond ETF (TLTI) and First Trust Alternative Absolute Return Strategy ETF (FAAR) have volatilities of 2.36% and 2.47%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTI	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.36%	2.47%	-0.11%
Volatility (6M) Calculated over the trailing 6-month period	6.58%	9.68%	-3.10%
Volatility (1Y) Calculated over the trailing 1-year period	9.28%	13.37%	-4.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.11%	12.95%	-1.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.11%	11.53%	-0.42%

TLTI vs. FAAR - Expense Ratio Comparison

TLTI has a 0.58% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

TLTI vs. FAAR - Dividend Comparison

TLTI's dividend yield for the trailing twelve months is around 6.78%, less than FAAR's 9.57% yield.

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%
TLTI NEOS Enhanced Income 20+ Year Treasury Bond ETF	6.78%	6.33%	0.57%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TLTI and FAAR in my portfolio?

TLTI and FAAR have a correlation of -0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TLTI or FAAR?

FAAR has higher volatility (2.47%) compared to TLTI (2.36%). In terms of maximum drawdown, TLTI dropped -8.70% vs FAAR's -18.03%.

Which ETF is better, TLTI or FAAR?

On 1-year performance, FAAR leads with 26.86% vs 5.82% for TLTI. On fees, TLTI is cheaper at 0.58% per year. On volatility, TLTI 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, TLTI or FAAR?

Over the 1-year period, FAAR has performed better with a 26.86% return vs 5.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTI or FAAR?

TLTI is cheaper with a 0.58% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.57%, compared with 6.78% for TLTI.

What is the main difference between TLTI and FAAR?

TLTI is categorized as Derivative Income, while FAAR is Commodities. They also come from different issuers: NEOS Investments and First Trust. Their fees differ too: 0.58% for TLTI and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (2.02 vs 0.63), 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.