XLSR vs. FAAR
XLSR (SPDR SSGA US Sector Rotation ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - XLSR is a Large Cap Growth Equities fund actively managed by State Street, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 5 years, XLSR returned 9.34%/yr vs 7.72%/yr for FAAR. At a 0.06 correlation, their price movements are largely independent. XLSR charges 0.70%/yr vs 0.95%/yr for FAAR.
Performance
XLSR vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, XLSR achieves a 2.67% return, which is significantly lower than FAAR's 19.14% return.
XLSR
- 1D
- -1.63%
- 1M
- -2.30%
- YTD
- 2.67%
- 6M
- 1.98%
- 1Y
- 20.16%
- 3Y*
- 15.52%
- 5Y*
- 9.34%
- 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%
XLSR vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
XLSR SPDR SSGA US Sector Rotation ETF | 2.67% | 17.34% | 17.60% | 18.95% | -15.70% | 20.47% | 20.23% | 13.86% |
FAAR First Trust Alternative Absolute Return Strategy ETF | 19.14% | 8.07% | 5.97% | -5.63% | 10.15% | 12.34% | 8.60% | -2.43% |
Correlation
The correlation between XLSR and FAAR is -0.09, 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 | -0.09 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.03 |
Correlation (All Time) Calculated using the full available price history since Apr 3, 2019 | 0.06 |
The correlation between XLSR and FAAR shifts across timeframes, from -0.09 (1 year) to 0.06 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
XLSR vs. FAAR — Risk / Return Rank
XLSR
FAAR
XLSR vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR SSGA US Sector Rotation ETF (XLSR) 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.
| XLSR | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.61 | ||
| Sortino ratioReturn per unit of downside risk | -0.92 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.37 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.83 | 4.52 | -2.69 |
| Martin ratioReturn relative to average drawdown | 7.89 | 15.18 | -7.29 |
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Drawdowns
XLSR vs. FAAR - Drawdown Comparison
The maximum XLSR drawdown since its inception was -32.94%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for XLSR and FAAR.
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Drawdown Indicators
| XLSR | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.94% | -18.03% | -14.91% |
Max Drawdown (1Y)Largest decline over 1 year | -11.06% | -6.29% | -4.77% |
Max Drawdown (3Y)Largest decline over 3 years | -20.57% | -11.54% | -9.03% |
Max Drawdown (5Y)Largest decline over 5 years | -23.32% | -18.03% | -5.29% |
Max Drawdown (10Y)Largest decline over 10 years | — | -18.03% | — |
Current DrawdownCurrent decline from peak | -4.05% | -6.29% | +2.24% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -7.82% | +2.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.56% | 1.87% | +0.69% |
Volatility
XLSR vs. FAAR - Volatility Comparison
SPDR SSGA US Sector Rotation ETF (XLSR) has a higher volatility of 5.38% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that XLSR'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.
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Volatility by Period
| XLSR | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.38% | 2.55% | +2.83% |
Volatility (6M)Calculated over the trailing 6-month period | 10.37% | 9.68% | +0.69% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.14% | 13.38% | -0.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.21% | 12.96% | +4.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.06% | 11.54% | +8.52% |
XLSR vs. FAAR - Expense Ratio Comparison
XLSR has a 0.70% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
XLSR vs. FAAR - Dividend Comparison
XLSR's dividend yield for the trailing twelve months is around 0.54%, 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% |
XLSR SPDR SSGA US Sector Rotation ETF | 0.54% | 0.58% | 0.66% | 1.04% | 1.80% | 3.44% | 1.25% | 0.94% | 0.00% | 0.00% |
Frequently Asked Questions
XLSR and FAAR have a correlation of -0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLSR has higher volatility (5.38%) compared to FAAR (2.55%). In terms of maximum drawdown, XLSR dropped -32.94% vs FAAR's -18.03%.
On 5-year performance, XLSR leads with 9.34% vs 7.72% for FAAR. On fees, XLSR is cheaper at 0.70% 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, XLSR has performed better with a 9.34% return vs 7.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLSR is cheaper with a 0.70% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 0.54% for XLSR.
XLSR is categorized as Large Cap Growth Equities, while FAAR is Commodities. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.70% for XLSR and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.54), 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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