XLV vs. FAAR
XLV (State Street Health Care Select Sector SPDR ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - XLV is a Health & Biotech Equities fund tracking the Health Care Select Sector Index, while FAAR is a Commodities fund actively managed by First Trust. XLV is passively managed, while FAAR is actively managed. Over the past 10 years, XLV returned 10.01%/yr vs 4.69%/yr for FAAR. At a 0.01 correlation, their price movements are largely independent. XLV charges 0.08%/yr vs 0.95%/yr for FAAR.
Performance
XLV vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, XLV achieves a -0.85% return, which is significantly lower than FAAR's 19.14% return. Over the past 10 years, XLV has outperformed FAAR with an annualized return of 10.01%, while FAAR has yielded a comparatively lower 4.69% annualized return.
XLV
- 1D
- 1.41%
- 1M
- 1.98%
- YTD
- -0.85%
- 6M
- -0.97%
- 1Y
- 17.16%
- 3Y*
- 6.63%
- 5Y*
- 5.69%
- 10Y*
- 10.01%
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%
XLV vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLV State Street Health Care Select Sector SPDR ETF | -0.85% | 14.50% | 2.47% | 2.07% | -2.08% | 26.04% | 13.30% | 20.45% | 6.28% | 21.77% |
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 XLV and FAAR is -0.19, 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 | -0.19 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.05 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.00 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | 0.01 |
The correlation between XLV and FAAR shifts across timeframes, from -0.19 (1 year) to 0.01 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
XLV vs. FAAR — Risk / Return Rank
XLV
FAAR
XLV vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Health Care Select Sector SPDR ETF (XLV) 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.
| XLV | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.01 | ||
| Sortino ratioReturn per unit of downside risk | -1.29 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.37 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 4.52 | -2.88 |
| Martin ratioReturn relative to average drawdown | 3.89 | 15.18 | -11.29 |
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Drawdowns
XLV vs. FAAR - Drawdown Comparison
The maximum XLV drawdown since its inception was -39.17%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for XLV and FAAR.
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Drawdown Indicators
| XLV | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -39.17% | -18.03% | -21.14% |
Max Drawdown (1Y)Largest decline over 1 year | -10.47% | -6.29% | -4.18% |
Max Drawdown (3Y)Largest decline over 3 years | -17.11% | -11.54% | -5.57% |
Max Drawdown (5Y)Largest decline over 5 years | -17.11% | -18.03% | +0.92% |
Max Drawdown (10Y)Largest decline over 10 years | -28.40% | -18.03% | -10.37% |
Current DrawdownCurrent decline from peak | -4.20% | -6.29% | +2.09% |
Average DrawdownAverage peak-to-trough decline | -7.12% | -7.82% | +0.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.42% | 1.87% | +2.55% |
Volatility
XLV vs. FAAR - Volatility Comparison
State Street Health Care Select Sector SPDR ETF (XLV) has a higher volatility of 5.27% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.55%. This indicates that XLV'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
| XLV | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.27% | 2.55% | +2.72% |
Volatility (6M)Calculated over the trailing 6-month period | 10.68% | 9.68% | +1.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.09% | 13.38% | +1.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.77% | 12.96% | +1.81% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 16.57% | 11.54% | +5.03% |
XLV vs. FAAR - Expense Ratio Comparison
XLV has a 0.08% expense ratio, which is lower than FAAR's 0.95% expense ratio.
Dividends
XLV vs. FAAR - Dividend Comparison
XLV's dividend yield for the trailing twelve months is around 1.66%, 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% |
XLV State Street Health Care Select Sector SPDR ETF | 1.66% | 1.60% | 1.67% | 1.59% | 1.47% | 1.33% | 1.49% | 2.17% | 1.57% | 1.47% | 1.60% | 1.43% |
Frequently Asked Questions
XLV and FAAR have a correlation of -0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLV has higher volatility (5.27%) compared to FAAR (2.55%). In terms of maximum drawdown, XLV dropped -39.17% vs FAAR's -18.03%.
On 10-year performance, XLV leads with 10.01% vs 4.69% for FAAR. On fees, XLV is cheaper at 0.08% 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 10-year period, XLV has performed better with a 10.01% return vs 4.69%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLV is cheaper with a 0.08% expense ratio, compared with 0.95% for FAAR.
FAAR has the higher dividend yield at 9.66%, compared with 1.66% for XLV.
XLV is categorized as Health & Biotech Equities, while FAAR is Commodities. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.08% for XLV and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.14), 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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