WDIG vs. FAAR

Last updated Jun 4, 2026

WDIG (WisdomTree Efficient Rare Earth Plus Strategic Metals Fund) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both Commodities funds. Both are actively managed. At a correlation of -0.14, they often move in opposite directions. WDIG charges 0.55%/yr vs 0.95%/yr for FAAR.

Performance

WDIG vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Efficient Rare Earth Plus Strategic Metals Fund (WDIG) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

WDIG

• 1D: -4.03%
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAR

• 1D: 0.01%
• 1M: -0.79%
• YTD: 25.73%
• 6M: 23.17%
• 1Y: 40.73%
• 3Y*: 11.79%
• 5Y*: 8.07%
• 10Y*: 5.17%

*Multi-year figures are annualized to reflect compound growth (CAGR)

WDIG vs. FAAR - Yearly Performance Comparison

	2026 (YTD)
WDIG WisdomTree Efficient Rare Earth Plus Strategic Metals Fund	1.18%
FAAR First Trust Alternative Absolute Return Strategy ETF	1.19%

Correlation

The correlation between WDIG and FAAR is -0.14, 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 (All Time) Calculated using the full available price history since May 8, 2026	-0.14

WDIG vs. FAAR - Sectors Allocation Comparison

Sectors	WDIG	FAAR
Basic Materials	76.8%	-
Industrials	7.5%	-
Energy	2.4%	-
Communication Services	0.9%	-
Technology	0.6%	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	100.0%
Healthcare	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

WDIG vs. FAAR — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FAAR

FAAR Risk / Return Rank: 90
FAAR Sharpe Ratio Rank: 89
FAAR Sortino Ratio Rank: 90
FAAR Omega Ratio Rank: 84
FAAR Calmar Ratio Rank: 95
FAAR Martin Ratio Rank: 92

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

WDIG vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Efficient Rare Earth Plus Strategic Metals Fund (WDIG) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	WDIG	FAAR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	3.04	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.62	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.45	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.45	-0.10

Drawdowns

WDIG vs. FAAR - Drawdown Comparison

The maximum WDIG drawdown since its inception was -15.71%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for WDIG and FAAR.

Drawdown Indicators

	WDIG	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-15.71%	-18.03%	+2.32%
Max Drawdown (1Y) Largest decline over 1 year	—	-4.85%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-11.54%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-18.03%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-5.40%	-1.11%	-4.29%
Average Drawdown Average peak-to-trough decline	-6.14%	-7.85%	+1.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.73%	—

Volatility

Volatility by Period

	WDIG	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.44%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.72%	—
Volatility (1Y) Calculated over the trailing 1-year period	52.06%	13.48%	+38.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	52.06%	13.02%	+39.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	52.06%	11.51%	+40.55%

WDIG vs. FAAR - Expense Ratio Comparison

WDIG has a 0.55% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

WDIG vs. FAAR - Dividend Comparison

WDIG has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.15%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.15%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
WDIG WisdomTree Efficient Rare Earth Plus Strategic Metals Fund	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both WDIG and FAAR in my portfolio?

WDIG and FAAR have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, WDIG or FAAR?

On fees, WDIG is cheaper at 0.55% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, WDIG or FAAR?

WDIG is cheaper with a 0.55% expense ratio, compared with 0.95% for FAAR.

Which ETF pays a higher dividend yield, WDIG or FAAR?

FAAR has the higher dividend yield at 9.15%, compared with 0.00% for WDIG.

What is the main difference between WDIG and FAAR?

They also come from different issuers: WisdomTree and First Trust. Their fees differ too: 0.55% for WDIG and 0.95% for FAAR.