TMFS vs. FAAR
TMFS (Motley Fool Small-Cap Growth ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TMFS is a Small Cap Growth Equities fund actively managed by Motley Fool, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 5 years, TMFS returned -2.26%/yr vs 7.72%/yr for FAAR. At a 0.03 correlation, their price movements are largely independent. TMFS charges 0.85%/yr vs 0.95%/yr for FAAR.
Performance
TMFS vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, TMFS achieves a -0.78% return, which is significantly lower than FAAR's 19.14% return.
TMFS
- 1D
- -1.17%
- 1M
- 0.84%
- YTD
- -0.78%
- 6M
- -4.22%
- 1Y
- -1.24%
- 3Y*
- 7.66%
- 5Y*
- -2.26%
- 10Y*
- —
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%
TMFS vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
TMFS Motley Fool Small-Cap Growth ETF | -0.78% | -1.59% | 15.41% | 25.40% | -33.15% | -2.38% | 58.52% | 40.19% | -6.14% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -2.84% |
Correlation
The correlation between TMFS and FAAR is -0.07, 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 | -0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.01 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.00 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2018 | 0.03 |
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Return for Risk
TMFS vs. FAAR — Risk / Return Rank
TMFS
FAAR
TMFS vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Motley Fool Small-Cap Growth ETF (TMFS) 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.
| TMFS | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.22 | ||
| 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 | -0.08 | 4.52 | -4.60 |
| Martin ratioReturn relative to average drawdown | -0.21 | 15.18 | -15.39 |
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Drawdowns
TMFS vs. FAAR - Drawdown Comparison
The maximum TMFS drawdown since its inception was -48.79%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TMFS and FAAR.
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Drawdown Indicators
| TMFS | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.79% | -18.03% | -30.76% |
Max Drawdown (1Y)Largest decline over 1 year | -15.73% | -6.29% | -9.44% |
Max Drawdown (3Y)Largest decline over 3 years | -27.05% | -11.54% | -15.51% |
Max Drawdown (5Y)Largest decline over 5 years | -45.68% | -18.03% | -27.65% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -19.61% | -6.29% | -13.32% |
Average DrawdownAverage peak-to-trough decline | -19.47% | -7.82% | -11.65% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.91% | 1.87% | +4.04% |
Volatility
TMFS vs. FAAR - Volatility Comparison
Motley Fool Small-Cap Growth ETF (TMFS) has a higher volatility of 5.81% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that TMFS'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
| TMFS | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.81% | 2.55% | +3.26% |
Volatility (6M)Calculated over the trailing 6-month period | 14.28% | 9.68% | +4.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.01% | 13.38% | +6.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.01% | 12.96% | +10.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.50% | 11.54% | +13.96% |
TMFS vs. FAAR - Expense Ratio Comparison
TMFS has a 0.85% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
TMFS vs. FAAR - Dividend Comparison
TMFS has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.66%.
| 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% |
TMFS Motley Fool Small-Cap Growth ETF | 0.00% | 0.00% | 0.00% | 0.00% | 0.34% | 2.37% | 5.57% | 2.65% | 0.00% | 0.00% |
Frequently Asked Questions
TMFS and FAAR have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TMFS has higher volatility (5.81%) compared to FAAR (2.55%). In terms of maximum drawdown, TMFS dropped -48.79% vs FAAR's -18.03%.
On 5-year performance, FAAR leads with 7.72% vs -2.26% for TMFS. On fees, TMFS is cheaper at 0.85% 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 5-year period, FAAR has performed better with a 7.72% return vs -2.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TMFS is cheaper with a 0.85% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 0.00% for TMFS.
TMFS is categorized as Small Cap Growth Equities, while FAAR is Commodities. They also come from different issuers: Motley Fool and First Trust. Their fees differ too: 0.85% for TMFS and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs -0.06), 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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