TRIO vs. FAAR

Last updated Jun 26, 2026

TRIO (MC Trio Equity Buffered ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TRIO is a Equity Hedged fund actively managed by ETF Architect, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past year, TRIO returned 12.76% vs 28.64% for FAAR. At a 0.03 correlation, their price movements are largely independent. TRIO charges 0.70%/yr vs 0.95%/yr for FAAR.

Performance

TRIO vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in MC Trio Equity Buffered ETF (TRIO) 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, TRIO achieves a 5.08% return, which is significantly lower than FAAR's 18.01% return.

TRIO

• 1D: 0.14%
• 1M: -0.21%
• YTD: 5.08%
• 6M: 4.58%
• 1Y: 12.76%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAR

• 1D: 0.52%
• 1M: -5.18%
• YTD: 18.01%
• 6M: 17.71%
• 1Y: 28.64%
• 3Y*: 10.16%
• 5Y*: 7.61%
• 10Y*: 4.60%

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

TRIO vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025
TRIO MC Trio Equity Buffered ETF	5.08%	11.70%
FAAR First Trust Alternative Absolute Return Strategy ETF	18.01%	6.89%

Correlation

The correlation between TRIO and FAAR is -0.05, 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	-0.05
Correlation (All Time) Calculated using the full available price history since Mar 6, 2025	0.03

Return for Risk

TRIO vs. FAAR — Risk / Return Rank

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

TRIO

TRIO Risk / Return Rank: 75
TRIO Sharpe Ratio Rank: 74
TRIO Sortino Ratio Rank: 77
TRIO Omega Ratio Rank: 79
TRIO Calmar Ratio Rank: 65
TRIO Martin Ratio Rank: 81

FAAR

FAAR Risk / Return Rank: 79
FAAR Sharpe Ratio Rank: 78
FAAR Sortino Ratio Rank: 81
FAAR Omega Ratio Rank: 72
FAAR Calmar Ratio Rank: 81
FAAR Martin Ratio Rank: 83

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.

TRIO vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for MC Trio Equity Buffered ETF (TRIO) 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.

	TRIO	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	2.07	2.18	-0.10
Sortino ratio: Return per unit of downside risk	3.02	3.12	-0.10
Omega ratio: Gain probability vs. loss probability	1.41	1.37	+0.04
Calmar ratio: Return relative to maximum drawdown	2.87	3.76	-0.89
Martin ratio: Return relative to average drawdown	14.25	14.47	-0.22

TRIO vs. FAAR - Sharpe Ratio Comparison

The current TRIO Sharpe Ratio is 2.07, which is comparable to the FAAR Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of TRIO 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

TRIO vs. FAAR - Drawdown Comparison

The maximum TRIO drawdown since its inception was -9.88%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TRIO and FAAR.

Drawdown Indicators

	TRIO	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-9.88%	-18.03%	+8.15%
Max Drawdown (1Y) Largest decline over 1 year	-4.47%	-7.66%	+3.19%
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	-0.79%	-7.18%	+6.39%
Average Drawdown Average peak-to-trough decline	-0.78%	-7.82%	+7.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	1.98%	-1.08%

Volatility

TRIO vs. FAAR - Volatility Comparison

The current volatility for MC Trio Equity Buffered ETF (TRIO) is 1.76%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.85%. This indicates that TRIO experiences smaller price fluctuations and is considered to be less risky than FAAR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TRIO	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.76%	2.85%	-1.09%
Volatility (6M) Calculated over the trailing 6-month period	4.97%	9.79%	-4.82%
Volatility (1Y) Calculated over the trailing 1-year period	6.18%	13.22%	-7.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.55%	12.97%	-2.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.55%	11.54%	-0.99%

TRIO vs. FAAR - Expense Ratio Comparison

TRIO has a 0.70% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

TRIO vs. FAAR - Dividend Comparison

TRIO's dividend yield for the trailing twelve months is around 8.57%, less than FAAR's 10.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	10.25%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
TRIO MC Trio Equity Buffered ETF	8.57%	9.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TRIO and FAAR in my portfolio?

TRIO and FAAR have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TRIO or FAAR?

FAAR has higher volatility (2.85%) compared to TRIO (1.76%). In terms of maximum drawdown, TRIO dropped -9.88% vs FAAR's -18.03%.

Which ETF is better, TRIO or FAAR?

On 1-year performance, FAAR leads with 28.64% vs 12.76% for TRIO. On fees, TRIO is cheaper at 0.70% per year. On volatility, TRIO has been the lower-risk option at 1.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TRIO or FAAR?

Over the 1-year period, FAAR has performed better with a 28.64% return vs 12.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TRIO or FAAR?

TRIO is cheaper with a 0.70% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 10.25%, compared with 8.57% for TRIO.

What is the main difference between TRIO and FAAR?

TRIO is categorized as Equity Hedged, while FAAR is Commodities. They also come from different issuers: ETF Architect and First Trust. Their fees differ too: 0.70% for TRIO and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (2.18 vs 2.07), 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.