XTJL vs. FAAR

Last updated Jun 24, 2026

XTJL (Innovator U.S. Equity Accelerated Plus ETF - July) and FAAR (First Trust Alternative Absolute Return Strategy ETF) are both exchange-traded funds - XTJL is a Leveraged Equities fund actively managed by Innovator, while FAAR is a Commodities fund actively managed by First Trust. Both are actively managed. Over the past 3 years, XTJL returned 14.41%/yr vs 10.57%/yr for FAAR. At a 0.02 correlation, their price movements are largely independent. XTJL charges 0.79%/yr vs 0.95%/yr for FAAR.

Performance

XTJL vs. FAAR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Equity Accelerated Plus ETF - July (XTJL) and First Trust Alternative Absolute Return Strategy ETF (FAAR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XTJL achieves a 5.60% return, which is significantly lower than FAAR's 19.14% return.

XTJL

• 1D: -0.06%
• 1M: 0.45%
• YTD: 5.60%
• 6M: 5.32%
• 1Y: 14.52%
• 3Y*: 14.41%
• 5Y*: —
• 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%

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

XTJL vs. FAAR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
XTJL Innovator U.S. Equity Accelerated Plus ETF - July	5.60%	15.42%	14.43%	25.72%	-15.66%	7.81%
FAAR First Trust Alternative Absolute Return Strategy ETF	19.14%	8.07%	5.97%	-5.63%	10.15%	0.78%

Correlation

The correlation between XTJL and FAAR is -0.05, 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	-0.05
Correlation (3Y) Calculated over the trailing 3-year period	-0.00
Correlation (All Time) Calculated using the full available price history since Jul 1, 2021	0.02

Return for Risk

XTJL vs. FAAR — Risk / Return Rank

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

XTJL

XTJL Risk / Return Rank: 72
XTJL Sharpe Ratio Rank: 65
XTJL Sortino Ratio Rank: 71
XTJL Omega Ratio Rank: 80
XTJL Calmar Ratio Rank: 62
XTJL Martin Ratio Rank: 84

FAAR

FAAR Risk / Return Rank: 75
FAAR Sharpe Ratio Rank: 71
FAAR Sortino Ratio Rank: 74
FAAR Omega Ratio Rank: 65
FAAR Calmar Ratio Rank: 86
FAAR Martin Ratio Rank: 81

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.

XTJL vs. FAAR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Accelerated Plus ETF - July (XTJL) 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.

	XTJL	FAAR	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.15	-0.17
Sortino ratio: Return per unit of downside risk	2.95	3.09	-0.14
Omega ratio: Gain probability vs. loss probability	1.44	1.37	+0.07
Calmar ratio: Return relative to maximum drawdown	2.85	4.52	-1.67
Martin ratio: Return relative to average drawdown	16.13	15.18	+0.95

XTJL vs. FAAR - Sharpe Ratio Comparison

The current XTJL Sharpe Ratio is 1.98, which is comparable to the FAAR Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of XTJL 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

XTJL vs. FAAR - Drawdown Comparison

The maximum XTJL drawdown since its inception was -23.24%, which is greater than FAAR's maximum drawdown of -18.03%. Use the drawdown chart below to compare losses from any high point for XTJL and FAAR.

Drawdown Indicators

	XTJL	FAAR	Difference
Max Drawdown Largest peak-to-trough decline	-23.24%	-18.03%	-5.21%
Max Drawdown (1Y) Largest decline over 1 year	-5.12%	-6.29%	+1.17%
Max Drawdown (3Y) Largest decline over 3 years	-16.70%	-11.54%	-5.16%
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	-0.06%	-6.29%	+6.23%
Average Drawdown Average peak-to-trough decline	-4.00%	-7.82%	+3.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	1.87%	-0.97%

Volatility

XTJL vs. FAAR - Volatility Comparison

The current volatility for Innovator U.S. Equity Accelerated Plus ETF - July (XTJL) is 0.36%, while First Trust Alternative Absolute Return Strategy ETF (FAAR) has a volatility of 2.55%. This indicates that XTJL 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.

Volatility by Period

	XTJL	FAAR	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.36%	2.55%	-2.19%
Volatility (6M) Calculated over the trailing 6-month period	5.65%	9.68%	-4.03%
Volatility (1Y) Calculated over the trailing 1-year period	7.35%	13.38%	-6.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.14%	12.96%	+2.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.14%	11.54%	+3.60%

XTJL vs. FAAR - Expense Ratio Comparison

XTJL has a 0.79% expense ratio, which is lower than FAAR's 0.95% expense ratio.

Dividends

XTJL vs. FAAR - Dividend Comparison

XTJL has not paid dividends to shareholders, while FAAR's dividend yield for the trailing twelve months is around 9.66%.

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%
XTJL Innovator U.S. Equity Accelerated Plus ETF - July	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XTJL and FAAR in my portfolio?

XTJL and FAAR have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XTJL or FAAR?

FAAR has higher volatility (2.55%) compared to XTJL (0.36%). In terms of maximum drawdown, XTJL dropped -23.24% vs FAAR's -18.03%.

Which ETF is better, XTJL or FAAR?

On 3-year performance, XTJL leads with 14.41% vs 10.57% for FAAR. On fees, XTJL is cheaper at 0.79% per year. On volatility, XTJL has been the lower-risk option at 0.36%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XTJL or FAAR?

Over the 3-year period, XTJL has performed better with a 14.41% return vs 10.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XTJL or FAAR?

XTJL is cheaper with a 0.79% expense ratio, compared with 0.95% for FAAR.

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

FAAR has the higher dividend yield at 9.66%, compared with 0.00% for XTJL.

What is the main difference between XTJL and FAAR?

XTJL is categorized as Leveraged Equities, while FAAR is Commodities. They also come from different issuers: Innovator and First Trust. Their fees differ too: 0.79% for XTJL and 0.95% for FAAR.

Which has better risk-adjusted returns?

FAAR currently has the higher Sharpe Ratio (2.15 vs 1.98), 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.