TUA vs. FAAR
TUA (Simplify Short Term Treasury Futures Strategy ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TUA is a Intermediate Core Bond fund actively managed by Simplify, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, TUA returned -0.34%/yr vs 10.91%/yr for FAAR. At a correlation of -0.11, they often move in opposite directions. TUA charges 0.16%/yr vs 0.95%/yr for FAAR.
Performance
TUA vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, TUA achieves a -6.57% return, which is significantly lower than FAAR's 20.23% return.
TUA
- 1D
- -0.49%
- 1M
- -0.93%
- YTD
- -6.57%
- 6M
- -6.35%
- 1Y
- -3.65%
- 3Y*
- -0.34%
- 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%
TUA vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
TUA Simplify Short Term Treasury Futures Strategy ETF | -6.57% | 7.27% | -3.59% | -2.04% | -0.83% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 20.23% | 8.07% | 5.97% | -5.63% | 0.82% |
Correlation
The correlation between TUA 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 (3Y) Calculated over the trailing 3-year period | -0.13 |
Correlation (All Time) Calculated using the full available price history since Nov 15, 2022 | -0.11 |
The correlation between TUA and FAAR shifts across timeframes, from -0.24 (1 year) to -0.11 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
TUA vs. FAAR — Risk / Return Rank
TUA
FAAR
TUA vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Simplify Short Term Treasury Futures Strategy ETF (TUA) 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.
| TUA | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.55 | ||
| Sortino ratioReturn per unit of downside risk | -3.58 | ||
| Omega ratioGain probability vs. loss probability | 0.92 | 1.35 | -0.43 |
| Calmar ratioReturn relative to maximum drawdown | -0.50 | 4.75 | -5.25 |
| Martin ratioReturn relative to average drawdown | -1.26 | 14.70 | -15.96 |
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Drawdowns
TUA vs. FAAR - Drawdown Comparison
The maximum TUA drawdown since its inception was -15.85%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TUA and FAAR.
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Drawdown Indicators
| TUA | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.85% | -18.03% | +2.18% |
Max Drawdown (1Y)Largest decline over 1 year | -7.37% | -5.68% | -1.69% |
Max Drawdown (3Y)Largest decline over 3 years | -9.14% | -11.54% | +2.40% |
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 | -11.19% | -5.43% | -5.76% |
Average DrawdownAverage peak-to-trough decline | -8.39% | -7.82% | -0.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.90% | 1.89% | +1.01% |
Volatility
TUA vs. FAAR - Volatility Comparison
Simplify Short Term Treasury Futures Strategy ETF (TUA) has a higher volatility of 2.66% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.47%. This indicates that TUA'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
| TUA | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.66% | 2.47% | +0.19% |
Volatility (6M)Calculated over the trailing 6-month period | 5.26% | 9.68% | -4.42% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.02% | 13.37% | -6.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.76% | 12.95% | -2.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.76% | 11.53% | -0.77% |
TUA vs. FAAR - Expense Ratio Comparison
TUA has a 0.16% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
TUA vs. FAAR - Dividend Comparison
TUA's dividend yield for the trailing twelve months is around 3.60%, 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% |
TUA Simplify Short Term Treasury Futures Strategy ETF | 3.60% | 3.84% | 5.19% | 4.83% | 0.15% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TUA 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.
TUA has higher volatility (2.66%) compared to FAAR (2.47%). In terms of maximum drawdown, TUA dropped -15.85% vs FAAR's -18.03%.
On 3-year performance, FAAR leads with 10.91% vs -0.34% for TUA. On fees, TUA is cheaper at 0.16% 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, FAAR has performed better with a 10.91% return vs -0.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TUA is cheaper with a 0.16% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.57%, compared with 3.60% for TUA.
TUA is categorized as Intermediate Core Bond, while FAAR is Commodities. They also come from different issuers: Simplify and First Trust. Their fees differ too: 0.16% for TUA and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.02 vs -0.52), 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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