TYD vs. FAAR
TYD (Direxion Daily 7-10 Year Treasury Bull 3X) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - TYD is a Leveraged Bonds fund tracking the NYSE 7-10 Year Treasury Bond Index, while FAAR is a Commodities fund actively managed by First Trust. TYD is passively managed, while FAAR is actively managed. Over the past 10 years, TYD returned -5.34%/yr vs 4.69%/yr for FAAR. At a correlation of -0.07, they often move in opposite directions. TYD charges 1.09%/yr vs 0.95%/yr for FAAR.
Performance
TYD vs. FAAR - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, TYD achieves a -7.02% return, which is significantly lower than FAAR's 19.14% return. Over the past 10 years, TYD has underperformed FAAR with an annualized return of -5.34%, while FAAR has yielded a comparatively higher 4.69% annualized return.
TYD
- 1D
- -0.47%
- 1M
- 0.30%
- YTD
- -7.02%
- 6M
- -7.06%
- 1Y
- -2.87%
- 3Y*
- -4.91%
- 5Y*
- -13.23%
- 10Y*
- -5.34%
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%
TYD vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TYD Direxion Daily 7-10 Year Treasury Bull 3X | -7.02% | 11.68% | -13.89% | -2.87% | -43.32% | -11.36% | 27.62% | 17.88% | 0.76% | 5.64% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -9.17% | 5.00% |
Correlation
The correlation between TYD and FAAR is -0.26, 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 | -0.26 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.12 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.11 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.07 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | -0.07 |
The correlation between TYD and FAAR shifts across timeframes, from -0.26 (1 year) to -0.07 (all time), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
TYD vs. FAAR — Risk / Return Rank
TYD
FAAR
TYD vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Direxion Daily 7-10 Year Treasury Bull 3X (TYD) 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.
| TYD | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.36 | ||
| Sortino ratioReturn per unit of downside risk | -3.30 | ||
| Omega ratioGain probability vs. loss probability | 0.98 | 1.37 | -0.39 |
| Calmar ratioReturn relative to maximum drawdown | -0.21 | 4.52 | -4.74 |
| Martin ratioReturn relative to average drawdown | -0.52 | 15.18 | -15.70 |
Loading charts...
Drawdowns
TYD vs. FAAR - Drawdown Comparison
The maximum TYD drawdown since its inception was -64.28%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for TYD and FAAR.
Loading charts...
Drawdown Indicators
| TYD | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -64.28% | -18.03% | -46.25% |
Max Drawdown (1Y)Largest decline over 1 year | -13.54% | -6.29% | -7.25% |
Max Drawdown (3Y)Largest decline over 3 years | -24.62% | -11.54% | -13.08% |
Max Drawdown (5Y)Largest decline over 5 years | -59.84% | -18.03% | -41.81% |
Max Drawdown (10Y)Largest decline over 10 years | -64.28% | -18.03% | -46.25% |
Current DrawdownCurrent decline from peak | -59.59% | -6.29% | -53.30% |
Average DrawdownAverage peak-to-trough decline | -22.05% | -7.82% | -14.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.54% | 1.87% | +3.67% |
Volatility
TYD vs. FAAR - Volatility Comparison
Direxion Daily 7-10 Year Treasury Bull 3X (TYD) has a higher volatility of 4.04% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that TYD'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.
Loading charts...
Volatility by Period
| TYD | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.04% | 2.55% | +1.49% |
Volatility (6M)Calculated over the trailing 6-month period | 9.96% | 9.68% | +0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.85% | 13.38% | +0.47% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 22.98% | 12.96% | +10.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.33% | 11.54% | +8.79% |
TYD vs. FAAR - Expense Ratio Comparison
TYD has a 1.09% expense ratio, which is higher than FAAR's 0.95% expense ratio.
Dividends
TYD vs. FAAR - Dividend Comparison
TYD's dividend yield for the trailing twelve months is around 3.26%, less than FAAR's 9.66% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% | 0.00% |
TYD Direxion Daily 7-10 Year Treasury Bull 3X | 3.26% | 2.97% | 3.10% | 2.71% | 0.55% | 0.00% | 9.80% | 0.92% | 1.10% | 0.01% | 6.84% | 1.65% |
Frequently Asked Questions
TYD and FAAR have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TYD has higher volatility (4.04%) compared to FAAR (2.55%). In terms of maximum drawdown, TYD dropped -64.28% vs FAAR's -18.03%.
On 10-year performance, FAAR leads with 4.69% vs -5.34% for TYD. On fees, FAAR is cheaper at 0.95% 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 10-year period, FAAR has performed better with a 4.69% return vs -5.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAAR is cheaper with a 0.95% expense ratio, compared with 1.09% for TYD.
FAAR has the higher dividend yield at 9.66%, compared with 3.26% for TYD.
TYD is categorized as Leveraged Bonds, while FAAR is Commodities. They also come from different issuers: Direxion and First Trust. Their fees differ too: 1.09% for TYD and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs -0.21), 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.
Find the right allocation for TYD and FAAR
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer