TMF vs. FAAR
TMF (Direxion Daily 20+ Year Treasury Bull 3X ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TMF is a Leveraged Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index (300%), while FAAR is a Commodities fund actively managed by First Trust. TMF is passively managed, while FAAR is actively managed. Over the past 10 years, TMF returned -16.87%/yr vs 4.69%/yr for FAAR. At a correlation of -0.09, they often move in opposite directions. TMF charges 1.01%/yr vs 0.95%/yr for FAAR.
Performance
TMF vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, TMF achieves a -4.67% return, which is significantly lower than FAAR's 19.14% return. Over the past 10 years, TMF has underperformed FAAR with an annualized return of -16.87%, while FAAR has yielded a comparatively higher 4.69% annualized return.
TMF
- 1D
- -0.62%
- 1M
- 4.96%
- YTD
- -4.67%
- 6M
- -5.95%
- 1Y
- -2.80%
- 3Y*
- -21.07%
- 5Y*
- -31.33%
- 10Y*
- -16.87%
FAAR
- 1D
- -0.91%
- 1M
- -5.21%
- YTD
- 19.14%
- 6M
- 18.06%
- 1Y
- 28.33%
- 3Y*
- 10.57%
- 5Y*
- 7.72%
- 10Y*
- 4.69%
TMF vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF | -4.67% | -2.94% | -35.95% | -13.01% | -72.60% | -19.80% | 39.02% | 34.75% | -11.01% | 22.72% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between TMF 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 (3Y) Calculated over the trailing 3-year period | -0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.13 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.09 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | -0.09 |
Over the past year, the inverse relationship between TMF and FAAR has strengthened: their correlation has moved from -0.09 to -0.29, meaning they now move in opposite directions more often than their long-term average.
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Return for Risk
TMF vs. FAAR — Risk / Return Rank
TMF
FAAR
TMF vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) 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.
| TMF | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.25 | ||
| Sortino ratioReturn per unit of downside risk | -3.04 | ||
| Omega ratioGain probability vs. loss probability | 1.01 | 1.37 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | -0.11 | 4.52 | -4.63 |
| Martin ratioReturn relative to average drawdown | -0.23 | 15.18 | -15.41 |
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Drawdowns
TMF vs. FAAR - Drawdown Comparison
The maximum TMF drawdown since its inception was -92.89%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TMF and FAAR.
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Drawdown Indicators
| TMF | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -92.89% | -18.03% | -74.86% |
Max Drawdown (1Y)Largest decline over 1 year | -26.51% | -6.29% | -20.22% |
Max Drawdown (3Y)Largest decline over 3 years | -56.09% | -11.54% | -44.55% |
Max Drawdown (5Y)Largest decline over 5 years | -88.81% | -18.03% | -70.78% |
Max Drawdown (10Y)Largest decline over 10 years | -92.89% | -18.03% | -74.86% |
Current DrawdownCurrent decline from peak | -92.11% | -6.29% | -85.82% |
Average DrawdownAverage peak-to-trough decline | -43.76% | -7.82% | -35.94% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 12.26% | 1.87% | +10.39% |
Volatility
TMF vs. FAAR - Volatility Comparison
Direxion Daily 20+ Year Treasury Bull 3X ETF (TMF) has a higher volatility of 6.50% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that TMF'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.
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Volatility by Period
| TMF | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.50% | 2.55% | +3.95% |
Volatility (6M)Calculated over the trailing 6-month period | 19.35% | 9.68% | +9.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 27.91% | 13.38% | +14.53% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 46.59% | 12.96% | +33.63% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 43.86% | 11.54% | +32.32% |
TMF vs. FAAR - Expense Ratio Comparison
TMF has a 1.01% expense ratio, which is higher than FAAR's 0.95% expense ratio.
Dividends
TMF vs. FAAR - Dividend Comparison
TMF's dividend yield for the trailing twelve months is around 4.09%, less than FAAR's 9.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.66% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
TMF Direxion Daily 20+ Year Treasury Bull 3X ETF | 4.09% | 4.06% | 4.29% | 2.82% | 1.62% | 0.13% | 2.23% | 0.94% | 1.49% | 0.41% |
Frequently Asked Questions
TMF 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.
TMF has higher volatility (6.50%) compared to FAAR (2.55%). In terms of maximum drawdown, TMF dropped -92.89% vs FAAR's -18.03%.
On 10-year performance, FAAR leads with 4.69% vs -16.87% for TMF. On fees, FAAR is cheaper at 0.95% per year. On volatility, FAAR has been the lower-risk option at 2.55%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FAAR has performed better with a 4.69% return vs -16.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAAR is cheaper with a 0.95% expense ratio, compared with 1.01% for TMF.
FAAR has the higher dividend yield at 9.66%, compared with 4.09% for TMF.
TMF is categorized as Leveraged Bonds, while FAAR is Commodities. They also come from different issuers: Direxion and First Trust. Their fees differ too: 1.01% for TMF and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs -0.10), 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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