TYA vs. FAAR
TYA (Simplify Intermediate Term Treasury Futures Strategy ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TYA is a Government Bonds 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, TYA returned -1.87%/yr vs 10.57%/yr for FAAR. At a correlation of -0.09, they often move in opposite directions. TYA charges 0.15%/yr vs 0.95%/yr for FAAR.
Performance
TYA vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, TYA achieves a -5.34% return, which is significantly lower than FAAR's 19.14% return.
TYA
- 1D
- 0.27%
- 1M
- 0.70%
- YTD
- -5.34%
- 6M
- -5.34%
- 1Y
- -0.95%
- 3Y*
- -1.87%
- 5Y*
- —
- 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%
TYA vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
TYA Simplify Intermediate Term Treasury Futures Strategy ETF | -5.34% | 14.38% | -9.63% | -2.23% | -37.62% | -0.80% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 0.68% |
Correlation
The correlation between TYA and FAAR is -0.25, 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 | -0.25 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.12 |
Correlation (All Time) Calculated using the full available price history since Sep 28, 2021 | -0.09 |
The correlation between TYA and FAAR shifts across timeframes, from -0.25 (1 year) to -0.09 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
TYA vs. FAAR — Risk / Return Rank
TYA
FAAR
TYA vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Simplify Intermediate Term Treasury Futures Strategy ETF (TYA) 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.
| TYA | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.23 | ||
| Sortino ratioReturn per unit of downside risk | -3.11 | ||
| Omega ratioGain probability vs. loss probability | 1.00 | 1.37 | -0.37 |
| Calmar ratioReturn relative to maximum drawdown | -0.08 | 4.52 | -4.60 |
| Martin ratioReturn relative to average drawdown | -0.20 | 15.18 | -15.38 |
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Drawdowns
TYA vs. FAAR - Drawdown Comparison
The maximum TYA drawdown since its inception was -51.15%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TYA and FAAR.
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Drawdown Indicators
| TYA | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.15% | -18.03% | -33.12% |
Max Drawdown (1Y)Largest decline over 1 year | -11.80% | -6.29% | -5.51% |
Max Drawdown (3Y)Largest decline over 3 years | -21.36% | -11.54% | -9.82% |
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 | -41.65% | -6.29% | -35.36% |
Average DrawdownAverage peak-to-trough decline | -35.88% | -7.82% | -28.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.67% | 1.87% | +2.80% |
Volatility
TYA vs. FAAR - Volatility Comparison
Simplify Intermediate Term Treasury Futures Strategy ETF (TYA) has a higher volatility of 3.58% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that TYA'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
| TYA | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.58% | 2.55% | +1.03% |
Volatility (6M)Calculated over the trailing 6-month period | 9.14% | 9.68% | -0.54% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.62% | 13.38% | -0.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.50% | 12.96% | +7.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.50% | 11.54% | +8.96% |
TYA vs. FAAR - Expense Ratio Comparison
TYA has a 0.15% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
TYA vs. FAAR - Dividend Comparison
TYA's dividend yield for the trailing twelve months is around 3.88%, 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% |
TYA Simplify Intermediate Term Treasury Futures Strategy ETF | 3.88% | 3.85% | 4.84% | 4.28% | 2.23% | 0.11% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
TYA and FAAR have a correlation of -0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TYA has higher volatility (3.58%) compared to FAAR (2.55%). In terms of maximum drawdown, TYA dropped -51.15% vs FAAR's -18.03%.
On 3-year performance, FAAR leads with 10.57% vs -1.87% for TYA. On fees, TYA is cheaper at 0.15% 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 3-year period, FAAR has performed better with a 10.57% return vs -1.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TYA is cheaper with a 0.15% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 3.88% for TYA.
TYA is categorized as Government Bonds, while FAAR is Commodities. They also come from different issuers: Simplify and First Trust. Their fees differ too: 0.15% for TYA and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs -0.08), 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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