VALQ vs. FAAR
VALQ (American Century STOXX U.S. Quality Value ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - VALQ is a Large Cap Value Equities fund tracking the iSTOXX American Century USA Quality Value Index, while FAAR is a Commodities fund actively managed by First Trust. VALQ is passively managed, while FAAR is actively managed. Over the past 5 years, VALQ returned 8.88%/yr vs 7.72%/yr for FAAR. At a 0.07 correlation, their price movements are largely independent. VALQ charges 0.29%/yr vs 0.95%/yr for FAAR.
Performance
VALQ vs. FAAR - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VALQ achieves a 4.29% return, which is significantly lower than FAAR's 19.14% return.
VALQ
- 1D
- -0.49%
- 1M
- -0.37%
- YTD
- 4.29%
- 6M
- 3.54%
- 1Y
- 14.31%
- 3Y*
- 14.29%
- 5Y*
- 8.88%
- 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%
VALQ vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
VALQ American Century STOXX U.S. Quality Value ETF | 4.29% | 10.58% | 16.71% | 13.87% | -7.73% | 27.05% | 0.64% | 24.52% | -10.92% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -1.28% | -10.48% |
Correlation
The correlation between VALQ and FAAR is -0.07, 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 | -0.07 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.04 |
Correlation (All Time) Calculated using the full available price history since Jan 16, 2018 | 0.07 |
The correlation between VALQ and FAAR shifts across timeframes, from -0.07 (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
VALQ vs. FAAR — Risk / Return Rank
VALQ
FAAR
VALQ vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for American Century STOXX U.S. Quality Value ETF (VALQ) 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.
| VALQ | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.87 | ||
| Sortino ratioReturn per unit of downside risk | -1.19 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.37 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 4.52 | -2.69 |
| Martin ratioReturn relative to average drawdown | 5.18 | 15.18 | -10.00 |
Loading charts...
Drawdowns
VALQ vs. FAAR - Drawdown Comparison
The maximum VALQ drawdown since its inception was -38.19%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for VALQ and FAAR.
Loading charts...
Drawdown Indicators
| VALQ | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.19% | -18.03% | -20.16% |
Max Drawdown (1Y)Largest decline over 1 year | -7.85% | -6.29% | -1.56% |
Max Drawdown (3Y)Largest decline over 3 years | -15.62% | -11.54% | -4.08% |
Max Drawdown (5Y)Largest decline over 5 years | -20.19% | -18.03% | -2.16% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -2.05% | -6.29% | +4.24% |
Average DrawdownAverage peak-to-trough decline | -4.92% | -7.82% | +2.90% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.77% | 1.87% | +0.90% |
Volatility
VALQ vs. FAAR - Volatility Comparison
American Century STOXX U.S. Quality Value ETF (VALQ) has a higher volatility of 3.59% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that VALQ'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
| VALQ | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.59% | 2.55% | +1.04% |
Volatility (6M)Calculated over the trailing 6-month period | 8.30% | 9.68% | -1.38% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.26% | 13.38% | -2.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.50% | 12.96% | +1.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.63% | 11.54% | +6.09% |
VALQ vs. FAAR - Expense Ratio Comparison
VALQ has a 0.29% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
VALQ vs. FAAR - Dividend Comparison
VALQ's dividend yield for the trailing twelve months is around 2.35%, 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% |
VALQ American Century STOXX U.S. Quality Value ETF | 2.35% | 1.88% | 1.58% | 1.76% | 2.71% | 1.58% | 2.08% | 2.31% | 2.35% | 0.00% |
Frequently Asked Questions
VALQ and FAAR have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VALQ has higher volatility (3.59%) compared to FAAR (2.55%). In terms of maximum drawdown, VALQ dropped -38.19% vs FAAR's -18.03%.
On 5-year performance, VALQ leads with 8.88% vs 7.72% for FAAR. On fees, VALQ is cheaper at 0.29% 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 5-year period, VALQ has performed better with a 8.88% return vs 7.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VALQ is cheaper with a 0.29% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 2.35% for VALQ.
VALQ is categorized as Large Cap Value Equities, while FAAR is Commodities. They also come from different issuers: American Century and First Trust. Their fees differ too: 0.29% for VALQ and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.28), 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 VALQ 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