TMFE vs. FAAR
TMFE (The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TMFE is a Large Cap Blend Equities fund tracking the Motley Fool Capital Efficiency 100 Index, while FAAR is a Commodities fund actively managed by First Trust. TMFE is passively managed, while FAAR is actively managed. Over the past 3 years, TMFE returned 17.10%/yr vs 10.91%/yr for FAAR. At a correlation of -0.06, they often move in opposite directions. TMFE charges 0.50%/yr vs 0.95%/yr for FAAR.
Performance
TMFE vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, TMFE achieves a -0.66% return, which is significantly lower than FAAR's 20.23% return.
TMFE
- 1D
- -1.15%
- 1M
- -3.09%
- YTD
- -0.66%
- 6M
- -1.05%
- 1Y
- 7.47%
- 3Y*
- 17.10%
- 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%
TMFE vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
TMFE The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF | -0.66% | 11.10% | 27.95% | 41.12% | -25.84% | -0.21% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 10.15% | -0.83% |
Correlation
The correlation between TMFE and FAAR is -0.13, 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 | -0.13 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.04 |
Correlation (All Time) Calculated using the full available price history since Dec 31, 2021 | -0.06 |
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Return for Risk
TMFE vs. FAAR — Risk / Return Rank
TMFE
FAAR
TMFE vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) 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.
| TMFE | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.42 | ||
| Sortino ratioReturn per unit of downside risk | -1.97 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.35 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | 0.66 | 4.75 | -4.08 |
| Martin ratioReturn relative to average drawdown | 2.44 | 14.70 | -12.26 |
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Drawdowns
TMFE vs. FAAR - Drawdown Comparison
The maximum TMFE drawdown since its inception was -31.21%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TMFE and FAAR.
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Drawdown Indicators
| TMFE | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -31.21% | -18.03% | -13.18% |
Max Drawdown (1Y)Largest decline over 1 year | -11.30% | -5.68% | -5.62% |
Max Drawdown (3Y)Largest decline over 3 years | -18.81% | -11.54% | -7.27% |
Max Drawdown (5Y)Largest decline over 5 years | — | -18.03% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -3.91% | -5.43% | +1.52% |
Average DrawdownAverage peak-to-trough decline | -8.28% | -7.82% | -0.46% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.07% | 1.89% | +1.18% |
Volatility
TMFE vs. FAAR - Volatility Comparison
The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) has a higher volatility of 4.31% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that TMFE'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
| TMFE | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.31% | 2.47% | +1.84% |
Volatility (6M)Calculated over the trailing 6-month period | 9.85% | 9.68% | +0.17% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.58% | 13.37% | -0.79% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.24% | 12.95% | +6.29% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.24% | 11.53% | +7.71% |
TMFE vs. FAAR - Expense Ratio Comparison
TMFE has a 0.50% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
TMFE vs. FAAR - Dividend Comparison
TMFE's dividend yield for the trailing twelve months is around 0.32%, 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% |
TMFE The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF | 0.32% | 0.32% | 0.44% | 0.45% | 0.40% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TMFE and FAAR have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TMFE has higher volatility (4.31%) compared to FAAR (2.47%). In terms of maximum drawdown, TMFE dropped -31.21% vs FAAR's -18.03%.
On 3-year performance, TMFE leads with 17.10% vs 10.91% for FAAR. On fees, TMFE is cheaper at 0.50% per year. On volatility, FAAR has been the lower-risk option at 2.47%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, TMFE has performed better with a 17.10% return vs 10.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TMFE is cheaper with a 0.50% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 0.32% for TMFE.
TMFE is categorized as Large Cap Blend Equities, while FAAR is Commodities. They also come from different issuers: RBB Fund and First Trust. Their fees differ too: 0.50% for TMFE and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs 0.60), 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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