XOEF vs. FAAR

Last updated Jul 12, 2026

XOEF (iShares S&P 500 ex S&P 100 ETF) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - XOEF is a S&P 500 fund tracking the S&P 500 Ex-S&P 100 Select Index, while FAAR is a Commodities fund actively managed by First Trust. XOEF is passively managed, while FAAR is actively managed. Over the past year, XOEF returned 21.69% vs 21.06% for FAAR. At a correlation of -0.04, they often move in opposite directions. XOEF charges 0.20%/yr vs 0.95%/yr for FAAR.

Performance

XOEF vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares S&P 500 ex S&P 100 ETF (XOEF) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with XOEF having a 16.51% return and FAAR slightly lower at 15.77%.

XOEF

• 1D: 0.10%
• 1M: 2.31%
• 6M: 12.08%
• YTD: 16.51%
• 1Y: 21.69%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FAAR

• 1D: -0.63%
• 1M: -5.61%
• 6M: 13.29%
• YTD: 15.77%
• 1Y: 21.06%
• 3Y*: 9.16%
• 5Y*: 6.81%
• 10Y*: 4.24%

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

XOEF vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025
XOEF iShares S&P 500 ex S&P 100 ETF	16.51%	4.27%
FAAR First Trust Alternative Absolute Return Strategy ETF	15.77%	5.64%

Correlation

The correlation between XOEF and FAAR is -0.04, 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	-0.04
Correlation (All Time) Calculated using the full available price history since Jul 9, 2025	-0.04

Return for Risk

XOEF vs. FAAR — Risk / Return Rank

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

XOEF

XOEF Risk / Return Rank: 65
XOEF Sharpe Ratio Rank: 61
XOEF Sortino Ratio Rank: 63
XOEF Omega Ratio Rank: 58
XOEF Calmar Ratio Rank: 69
XOEF Martin Ratio Rank: 72

FAAR

FAAR Risk / Return Rank: 67
FAAR Sharpe Ratio Rank: 69
FAAR Sortino Ratio Rank: 73
FAAR Omega Ratio Rank: 64
FAAR Calmar Ratio Rank: 65
FAAR Martin Ratio Rank: 64

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.

XOEF vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares S&P 500 ex S&P 100 ETF (XOEF) 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.

	XOEF	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	1.64	1.79	-0.15
Sortino ratio: Return per unit of downside risk	2.35	2.61	-0.26
Omega ratio: Gain probability vs. loss probability	1.28	1.31	-0.02
Calmar ratio: Return relative to maximum drawdown	2.75	2.61	+0.14
Martin ratio: Return relative to average drawdown	10.64	9.12	+1.52

XOEF vs. FAAR - Sharpe Ratio Comparison

The current XOEF Sharpe Ratio is 1.64, which is comparable to the FAAR Sharpe Ratio of 1.79. The chart below compares the historical Sharpe Ratios of XOEF 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.

Drawdowns

XOEF vs. FAAR - Drawdown Comparison

The maximum XOEF drawdown since its inception was -7.66%, smaller than the maximum FAAR drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for XOEF and FAAR.

Drawdown Indicators

	XOEF	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-7.66%	-18.03%	+10.37%
Max Drawdown (1Y) Largest decline over 1 year	-7.66%	-8.94%	+1.28%
Max Drawdown (3Y) Largest decline over 3 years	—	-11.54%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-18.03%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-18.03%	—
Current Drawdown Current decline from peak	-0.70%	-8.94%	+8.24%
Average Drawdown Average peak-to-trough decline	-1.26%	-7.82%	+6.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.98%	2.55%	-0.57%

Volatility

XOEF vs. FAAR - Volatility Comparison

iShares S&P 500 ex S&P 100 ETF (XOEF) has a higher volatility of 4.28% compared to First Trust Alternative Absolute Return Strategy ETF (FAAR) at 2.63%. This indicates that XOEF'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.

Volatility by Period

	XOEF	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.28%	2.63%	+1.65%
Volatility (6M) Calculated over the trailing 6-month period	9.91%	9.81%	+0.10%
Volatility (1Y) Calculated over the trailing 1-year period	12.85%	13.05%	-0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.83%	12.93%	-0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.83%	11.55%	+1.28%

XOEF vs. FAAR - Expense Ratio Comparison

XOEF has a 0.20% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

XOEF vs. FAAR - Dividend Comparison

XOEF's dividend yield for the trailing twelve months is around 1.04%, less than FAAR's 9.89% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FAAR First Trust Alternative Absolute Return Strategy ETF	9.89%	11.63%	3.45%	3.20%	5.82%	6.49%	3.05%	1.02%	0.58%	2.83%
XOEF iShares S&P 500 ex S&P 100 ETF	1.04%	0.63%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XOEF and FAAR in my portfolio?

XOEF and FAAR have a correlation of -0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XOEF or FAAR?

XOEF has higher volatility (4.28%) compared to FAAR (2.63%). In terms of maximum drawdown, XOEF dropped -7.66% vs FAAR's -18.03%.

Which ETF is better, XOEF or FAAR?

On 1-year performance, XOEF leads with 21.69% vs 21.06% for FAAR. On fees, XOEF is cheaper at 0.20% per year. On volatility, FAAR has been the lower-risk option at 2.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XOEF or FAAR?

Over the 1-year period, XOEF has performed better with a 21.69% return vs 21.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XOEF or FAAR?

XOEF is cheaper with a 0.20% expense ratio, compared with 0.95% for FAAR.

Which ETF pays a higher dividend yield, XOEF or FAAR?

FAAR has the higher dividend yield at 9.89%, compared with 1.04% for XOEF.

What is the main difference between XOEF and FAAR?

XOEF is categorized as S&P 500, while FAAR is Commodities. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.20% for XOEF and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (1.79 vs 1.64), 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.