USMV vs. FAAR
USMV (iShares MSCI USA Min Vol Factor ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - USMV is a Large Cap Blend Equities fund tracking the MSCI USA Minimum Volatility Index, while FAAR is a Commodities fund actively managed by First Trust. USMV is passively managed, while FAAR is actively managed. Over the past 10 years, USMV returned 9.79%/yr vs 4.69%/yr for FAAR. At a 0.03 correlation, their price movements are largely independent. USMV charges 0.15%/yr vs 0.95%/yr for FAAR.
Performance
USMV vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, USMV achieves a 1.14% return, which is significantly lower than FAAR's 19.14% return. Over the past 10 years, USMV has outperformed FAAR with an annualized return of 9.79%, while FAAR has yielded a comparatively lower 4.69% annualized return.
USMV
- 1D
- 0.29%
- 1M
- -2.10%
- YTD
- 1.14%
- 6M
- 0.51%
- 1Y
- 3.59%
- 3Y*
- 10.93%
- 5Y*
- 7.02%
- 10Y*
- 9.79%
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%
USMV vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USMV iShares MSCI USA Min Vol Factor ETF | 1.14% | 7.65% | 15.74% | 10.33% | -9.43% | 20.85% | 5.64% | 27.69% | 1.33% | 18.91% |
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 USMV 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 (3Y) Calculated over the trailing 3-year period | -0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.00 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.03 |
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Return for Risk
USMV vs. FAAR — Risk / Return Rank
USMV
FAAR
USMV vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Min Vol Factor ETF (USMV) 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.
| USMV | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.73 | ||
| Sortino ratioReturn per unit of downside risk | -2.45 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.37 | -0.29 |
| Calmar ratioReturn relative to maximum drawdown | 0.56 | 4.52 | -3.96 |
| Martin ratioReturn relative to average drawdown | 1.82 | 15.18 | -13.36 |
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Drawdowns
USMV vs. FAAR - Drawdown Comparison
The maximum USMV drawdown since its inception was -33.10%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for USMV and FAAR.
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Drawdown Indicators
| USMV | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -33.10% | -18.03% | -15.07% |
Max Drawdown (1Y)Largest decline over 1 year | -6.46% | -6.29% | -0.17% |
Max Drawdown (3Y)Largest decline over 3 years | -9.36% | -11.54% | +2.18% |
Max Drawdown (5Y)Largest decline over 5 years | -17.93% | -18.03% | +0.10% |
Max Drawdown (10Y)Largest decline over 10 years | -33.10% | -18.03% | -15.07% |
Current DrawdownCurrent decline from peak | -2.63% | -6.29% | +3.66% |
Average DrawdownAverage peak-to-trough decline | -2.87% | -7.82% | +4.95% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.98% | 1.87% | +0.11% |
Volatility
USMV vs. FAAR - Volatility Comparison
iShares MSCI USA Min Vol Factor ETF (USMV) and First Trust Alternative Absolute Return Strategy ETF (FAAR) have volatilities of 2.63% and 2.55%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| USMV | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.63% | 2.55% | +0.08% |
Volatility (6M)Calculated over the trailing 6-month period | 6.14% | 9.68% | -3.54% |
Volatility (1Y)Calculated over the trailing 1-year period | 8.60% | 13.38% | -4.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.35% | 12.96% | -0.61% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.51% | 11.54% | +2.97% |
USMV vs. FAAR - Expense Ratio Comparison
USMV has a 0.15% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
USMV vs. FAAR - Dividend Comparison
USMV's dividend yield for the trailing twelve months is around 1.53%, 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% |
USMV iShares MSCI USA Min Vol Factor ETF | 1.53% | 1.49% | 1.67% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% |
Frequently Asked Questions
USMV 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.
USMV has higher volatility (2.63%) compared to FAAR (2.55%). In terms of maximum drawdown, USMV dropped -33.10% vs FAAR's -18.03%.
On 10-year performance, USMV leads with 9.79% vs 4.69% for FAAR. On fees, USMV is cheaper at 0.15% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, USMV has performed better with a 9.79% return vs 4.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USMV 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 1.53% for USMV.
USMV is categorized as Large Cap Blend Equities, while FAAR is Commodities. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.15% for USMV and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 0.42), 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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