XB vs. FAAR
XB (BondBloxx B Rated USD High Yield Corporate Bond ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - XB is a High Yield Bonds fund tracking the ICE BofA Single-B US Cash Pay High Yield Constrained Index, while FAAR is a Commodities fund actively managed by First Trust. XB is passively managed, while FAAR is actively managed. Over the past 3 years, XB returned 8.25%/yr vs 10.73%/yr for FAAR. At a correlation of -0.03, they often move in opposite directions. XB charges 0.30%/yr vs 0.95%/yr for FAAR.
Performance
XB vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, XB achieves a 2.07% return, which is significantly lower than FAAR's 19.91% return.
XB
- 1D
- -0.49%
- 1M
- 1.07%
- YTD
- 2.07%
- 6M
- 2.60%
- 1Y
- 6.98%
- 3Y*
- 8.25%
- 5Y*
- —
- 10Y*
- —
FAAR
- 1D
- -1.40%
- 1M
- -5.68%
- YTD
- 19.91%
- 6M
- 20.17%
- 1Y
- 25.60%
- 3Y*
- 10.73%
- 5Y*
- 7.96%
- 10Y*
- 4.67%
XB vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
XB BondBloxx B Rated USD High Yield Corporate Bond ETF | 2.07% | 7.81% | 7.41% | 12.94% | -2.91% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.91% | 8.07% | 5.97% | -5.63% | -7.19% |
Correlation
The correlation between XB and FAAR is -0.13, 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 | -0.13 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.02 |
Correlation (All Time) Calculated using the full available price history since May 26, 2022 | -0.03 |
The correlation between XB and FAAR shifts across timeframes, from -0.13 (1 year) to -0.02 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
XB vs. FAAR — Risk / Return Rank
XB
FAAR
XB vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BondBloxx B Rated USD High Yield Corporate Bond ETF (XB) 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.
| XB | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.08 | ||
| Sortino ratioReturn per unit of downside risk | +0.07 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.33 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 3.25 | 4.52 | -1.27 |
| Martin ratioReturn relative to average drawdown | 14.09 | 13.97 | +0.11 |
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Drawdowns
XB vs. FAAR - Drawdown Comparison
The maximum XB drawdown since its inception was -9.25%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for XB and FAAR.
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Drawdown Indicators
| XB | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -9.25% | -18.03% | +8.78% |
Max Drawdown (1Y)Largest decline over 1 year | -2.16% | -5.68% | +3.52% |
Max Drawdown (3Y)Largest decline over 3 years | -5.36% | -11.54% | +6.18% |
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 | -0.49% | -5.68% | +5.19% |
Average DrawdownAverage peak-to-trough decline | -1.31% | -7.83% | +6.52% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.50% | 1.87% | -1.37% |
Volatility
XB vs. FAAR - Volatility Comparison
The current volatility for BondBloxx B Rated USD High Yield Corporate Bond ETF (XB) is 1.38%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.43%. This indicates that XB experiences smaller price fluctuations and is considered to be less risky 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
| XB | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.38% | 2.43% | -1.05% |
Volatility (6M)Calculated over the trailing 6-month period | 3.04% | 9.79% | -6.75% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.80% | 13.39% | -9.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.45% | 12.95% | -5.50% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.45% | 11.53% | -4.08% |
XB vs. FAAR - Expense Ratio Comparison
XB has a 0.30% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
XB vs. FAAR - Dividend Comparison
XB's dividend yield for the trailing twelve months is around 7.06%, less than FAAR's 9.60% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
FAAR First Trust Alternative Absolute Return Strategy ETF | 9.60% | 11.63% | 3.45% | 3.20% | 5.82% | 6.49% | 3.05% | 1.02% | 0.58% | 2.83% |
XB BondBloxx B Rated USD High Yield Corporate Bond ETF | 7.06% | 6.96% | 7.74% | 7.87% | 5.01% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
XB and FAAR have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.43%) compared to XB (1.38%). In terms of maximum drawdown, XB dropped -9.25% vs FAAR's -18.03%.
On 3-year performance, FAAR leads with 10.73% vs 8.25% for XB. On fees, XB is cheaper at 0.30% per year. On volatility, XB has been the lower-risk option at 1.38%. 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 10.73% return vs 8.25%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XB is cheaper with a 0.30% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.60%, compared with 7.06% for XB.
XB is categorized as High Yield Bonds, while FAAR is Commodities. They also come from different issuers: BondBloxx and First Trust. Their fees differ too: 0.30% for XB and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (1.92 vs 1.85), 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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