XMPT vs. FAAR
XMPT (VanEck CEF Municipal Income ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - XMPT is a High Yield Muni fund tracking the S-Network Municipal Bond Closed-End Fund Index, while FAAR is a Commodities fund actively managed by First Trust. XMPT is passively managed, while FAAR is actively managed. Over the past 10 years, XMPT returned 1.98%/yr vs 4.69%/yr for FAAR. At a correlation of -0.01, they often move in opposite directions. XMPT charges 1.97%/yr vs 0.95%/yr for FAAR.
Performance
XMPT vs. FAAR - Performance Comparison
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Returns By Period
In the year-to-date period, XMPT achieves a 4.03% return, which is significantly lower than FAAR's 19.14% return. Over the past 10 years, XMPT has underperformed FAAR with an annualized return of 1.98%, while FAAR has yielded a comparatively higher 4.69% annualized return.
XMPT
- 1D
- 0.59%
- 1M
- 3.08%
- YTD
- 4.03%
- 6M
- 5.11%
- 1Y
- 13.45%
- 3Y*
- 7.34%
- 5Y*
- -0.98%
- 10Y*
- 1.98%
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%
XMPT vs. FAAR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XMPT VanEck CEF Municipal Income ETF | 4.03% | 8.01% | 7.01% | 2.55% | -24.02% | 7.94% | 7.70% | 20.36% | -5.85% | 8.28% |
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 XMPT and FAAR is -0.20, 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 | -0.20 |
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 | -0.01 |
Correlation (All Time) Calculated using the full available price history since May 23, 2016 | -0.02 |
The correlation between XMPT and FAAR shifts across timeframes, from -0.20 (1 year) to -0.01 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
XMPT vs. FAAR — Risk / Return Rank
XMPT
FAAR
XMPT vs. FAAR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck CEF Municipal Income ETF (XMPT) 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.
| XMPT | FAAR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.30 | ||
| Sortino ratioReturn per unit of downside risk | -0.33 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.37 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 2.06 | 4.52 | -2.47 |
| Martin ratioReturn relative to average drawdown | 8.34 | 15.18 | -6.84 |
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Drawdowns
XMPT vs. FAAR - Drawdown Comparison
The maximum XMPT drawdown since its inception was -35.24%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for XMPT and FAAR.
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Drawdown Indicators
| XMPT | FAAR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.24% | -18.03% | -17.21% |
Max Drawdown (1Y)Largest decline over 1 year | -6.57% | -6.29% | -0.28% |
Max Drawdown (3Y)Largest decline over 3 years | -15.04% | -11.54% | -3.50% |
Max Drawdown (5Y)Largest decline over 5 years | -35.24% | -18.03% | -17.21% |
Max Drawdown (10Y)Largest decline over 10 years | -35.24% | -18.03% | -17.21% |
Current DrawdownCurrent decline from peak | -7.43% | -6.29% | -1.14% |
Average DrawdownAverage peak-to-trough decline | -8.81% | -7.82% | -0.99% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.62% | 1.87% | -0.25% |
Volatility
XMPT vs. FAAR - Volatility Comparison
The current volatility for VanEck CEF Municipal Income ETF (XMPT) is 1.82%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.55%. This indicates that XMPT 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
| XMPT | FAAR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.82% | 2.55% | -0.73% |
Volatility (6M)Calculated over the trailing 6-month period | 6.09% | 9.68% | -3.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 7.28% | 13.38% | -6.10% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 9.37% | 12.96% | -3.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 10.37% | 11.54% | -1.17% |
XMPT vs. FAAR - Expense Ratio Comparison
XMPT has a 1.97% expense ratio, which is higher than FAAR's 0.95% expense ratio.
Dividends
XMPT vs. FAAR - Dividend Comparison
XMPT's dividend yield for the trailing twelve months is around 6.23%, 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% |
XMPT VanEck CEF Municipal Income ETF | 6.23% | 5.87% | 5.35% | 3.81% | 5.12% | 3.74% | 3.79% | 4.08% | 5.05% | 4.84% | 5.35% | 5.24% |
Frequently Asked Questions
XMPT and FAAR have a correlation of -0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FAAR has higher volatility (2.55%) compared to XMPT (1.82%). In terms of maximum drawdown, XMPT dropped -35.24% vs FAAR's -18.03%.
On 10-year performance, FAAR leads with 4.69% vs 1.98% for XMPT. On fees, FAAR is cheaper at 0.95% per year. On volatility, XMPT has been the lower-risk option at 1.82%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FAAR has performed better with a 4.69% return vs 1.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FAAR is cheaper with a 0.95% expense ratio, compared with 1.97% for XMPT.
FAAR has the higher dividend yield at 9.66%, compared with 6.23% for XMPT.
XMPT is categorized as High Yield Muni, while FAAR is Commodities. They also come from different issuers: VanEck and First Trust. Their fees differ too: 1.97% for XMPT and 0.95% for FAAR.
FAAR currently has the higher Sharpe Ratio (2.15 vs 1.86), 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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