TLTX vs. FAAR

Last updated Jul 17, 2026

TLTX (Global X Treasury Bond Enhanced Income ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TLTX is a Government Bonds fund actively managed by Global X, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past year, TLTX returned 3.72% vs 23.68% for FAAR. At a correlation of -0.24, they often move in opposite directions. TLTX charges 0.29%/yr vs 0.95%/yr for FAAR.

Performance

TLTX vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X Treasury Bond Enhanced Income ETF (TLTX) 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, TLTX achieves a -1.59% return, which is significantly lower than FAAR's 16.56% return.

TLTX

• 1D: -0.20%
• 1M: -3.45%
• 6M: -2.30%
• YTD: -1.59%
• 1Y: 3.72%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAR

• 1D: 0.39%
• 1M: -4.15%
• 6M: 11.51%
• YTD: 16.56%
• 1Y: 23.68%
• 3Y*: 9.29%
• 5Y*: 7.07%
• 10Y*: 4.26%

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

TLTX vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025
TLTX Global X Treasury Bond Enhanced Income ETF	-1.59%	6.02%
FAAR First Trust Alternative Absolute Return Strategy ETF	16.56%	6.02%

Correlation

The correlation between TLTX and FAAR is -0.24, 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	-0.24
Correlation (All Time) Calculated using the full available price history since Jul 16, 2025	-0.24

Return for Risk

TLTX vs. FAAR — Risk / Return Rank

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

TLTX

TLTX Risk / Return Rank: 16
TLTX Sharpe Ratio Rank: 17
TLTX Sortino Ratio Rank: 15
TLTX Omega Ratio Rank: 15
TLTX Calmar Ratio Rank: 18
TLTX Martin Ratio Rank: 17

FAAR

FAAR Risk / Return Rank: 68
FAAR Sharpe Ratio Rank: 72
FAAR Sortino Ratio Rank: 74
FAAR Omega Ratio Rank: 66
FAAR Calmar Ratio Rank: 67
FAAR Martin Ratio Rank: 62

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.

TLTX vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X Treasury Bond Enhanced Income ETF (TLTX) 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.

	TLTX	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	0.40	1.84	-1.44
Sortino ratio: Return per unit of downside risk	0.64	2.67	-2.02
Omega ratio: Gain probability vs. loss probability	1.08	1.32	-0.24
Calmar ratio: Return relative to maximum drawdown	0.59	2.66	-2.07
Martin ratio: Return relative to average drawdown	1.32	8.62	-7.30

TLTX vs. FAAR - Sharpe Ratio Comparison

The current TLTX Sharpe Ratio is 0.40, which is lower than the FAAR Sharpe Ratio of 1.84. The chart below compares the historical Sharpe Ratios of TLTX 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

TLTX vs. FAAR - Drawdown Comparison

The maximum TLTX drawdown since its inception was -6.35%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TLTX and FAAR.

Drawdown Indicators

	TLTX	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-6.35%	-18.03%	+11.68%
Max Drawdown (1Y) Largest decline over 1 year	-6.35%	-8.94%	+2.59%
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	-5.23%	-8.32%	+3.09%
Average Drawdown Average peak-to-trough decline	-2.38%	-7.83%	+5.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.83%	2.76%	+0.07%

Volatility

TLTX vs. FAAR - Volatility Comparison

Global X Treasury Bond Enhanced Income ETF (TLTX) and First Trust Alternative Absolute Return Strategy ETF (FAAR) have volatilities of 2.87% and 2.92%, 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

	TLTX	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.87%	2.92%	-0.05%
Volatility (6M) Calculated over the trailing 6-month period	6.92%	9.70%	-2.78%
Volatility (1Y) Calculated over the trailing 1-year period	9.24%	12.90%	-3.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.24%	11.93%	-2.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.24%	11.55%	-2.31%

TLTX vs. FAAR - Expense Ratio Comparison

TLTX has a 0.29% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

TLTX vs. FAAR - Dividend Comparison

TLTX's dividend yield for the trailing twelve months is around 17.73%, more than FAAR's 9.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.82%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
TLTX Global X Treasury Bond Enhanced Income ETF	17.73%	7.54%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TLTX and FAAR in my portfolio?

TLTX and FAAR have a correlation of -0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TLTX or FAAR?

FAAR has higher volatility (2.92%) compared to TLTX (2.87%). In terms of maximum drawdown, TLTX dropped -6.35% vs FAAR's -18.03%.

Which ETF is better, TLTX or FAAR?

On 1-year performance, FAAR leads with 23.68% vs 3.72% for TLTX. On fees, TLTX is cheaper at 0.29% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTX or FAAR?

Over the 1-year period, FAAR has performed better with a 23.68% return vs 3.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTX or FAAR?

TLTX is cheaper with a 0.29% expense ratio, compared with 0.95% for FAAR.

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

TLTX has the higher dividend yield at 17.73%, compared with 9.82% for FAAR.

What is the main difference between TLTX and FAAR?

TLTX is categorized as Government Bonds, while FAAR is Commodities. They also come from different issuers: Global X and First Trust. Their fees differ too: 0.29% for TLTX and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (1.84 vs 0.40), 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.