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XMPT vs. FAAR
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

XMPT vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck CEF Municipal Income ETF (XMPT) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

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

XMPT vs. FAAR - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
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

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

XMPT
XMPT Risk / Return Rank: 5757
Overall Rank
XMPT Sharpe Ratio Rank: 6060
Sharpe Ratio Rank
XMPT Sortino Ratio Rank: 6464
Sortino Ratio Rank
XMPT Omega Ratio Rank: 6767
Omega Ratio Rank
XMPT Calmar Ratio Rank: 4444
Calmar Ratio Rank
XMPT Martin Ratio Rank: 5151
Martin Ratio Rank

FAAR
FAAR Risk / Return Rank: 7575
Overall Rank
FAAR Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
FAAR Sortino Ratio Rank: 7474
Sortino Ratio Rank
FAAR Omega Ratio Rank: 6565
Omega Ratio Rank
FAAR Calmar Ratio Rank: 8686
Calmar Ratio Rank
FAAR Martin Ratio Rank: 8181
Martin Ratio Rank
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.

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.


XMPTFAARDifference
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

XMPT vs. FAAR - Sharpe Ratio Comparison

The current XMPT Sharpe Ratio is 1.86, which is comparable to the FAAR Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of XMPT and FAAR, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.


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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


XMPTFAARDifference

Max Drawdown

Largest 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 Drawdown

Current decline from peak

-7.43%

-6.29%

-1.14%

Average Drawdown

Average peak-to-trough decline

-8.81%

-7.82%

-0.99%

Ulcer Index

Depth 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


XMPTFAARDifference

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.


PositionTTM20252024202320222021202020192018201720162015
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.

Portfolio Optimizer

Find the right allocation for XMPT and FAAR

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