ACES vs FAAR

Quick Verdict

ACES has a lower expense ratio. ACES delivered stronger 1-year returns. ACES offers more diversification with 37 holdings.

Lower Fees: ACESHigher Returns: ACESMore Diversified: ACES

Side-by-Side Comparison

MetricACESFAARWinner
Expense Ratio0.55%0.97%
AUM$109M$191M
Dividend Yield1.22%9.19%
Holdings386
YTD Return-4.16%+13.94%
1Y Return+21.72%+19.26%
3Y Return (annualized)-8.79%+8.78%
5Y Return (annualized)-13.98%+7.33%
Volatility (annualized)35.4%9.2%
Max Drawdown-79.0%-18.8%
Fund FamilyALPS AdvisorsFirst Trust Portfolios (US)
CategoryEquityCommodity
InceptionJun 27, 2018May 18, 2016

ACES vs FAAR Performance

ALPS Clean Energy ETF (ACES) is a ETF from ALPS Advisors and First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US). Over the past year ACES returned +21.72% while FAAR returned +19.26%. Year to date, ACES is down 4.16% versus a gain of 13.94% for FAAR.

Over three years, ACES compounded at -8.79% per year against +8.78% for FAAR; over five years the annualized figures are -13.98% and +7.33% respectively. Across the full 8-year window we track, ACES has the edge at +3.76% annualized vs +3.32%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

ACES has been the more volatile fund, with annualized monthly volatility of 35.4% compared with 9.2% for FAAR. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -79.0% for ACES and -18.8% for FAAR. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

ACES charges 0.55% per year while FAAR charges 0.97%. On a $10,000 position that is $55 vs $97 annually, a gap of $42 per year that compounds over a long holding period. On income, ACES currently yields 1.22% against 9.19% for FAAR.

Holdings Overlap

0.0%overlap

ACES and FAAR share 0 holdings out of 38 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, ACES or FAAR?

ACES has an expense ratio of 0.55% while FAAR charges 0.97%. ACES is the cheaper option. On a $10,000 investment, that is $42 per year of difference.

Which performed better, ACES or FAAR?

Over the past year ACES returned +21.72% vs +19.26% for FAAR, so ACES leads on 1-year performance. Over the longest common window we track (8 years), ACES annualized +3.76% vs +3.32% for FAAR. Past performance does not guarantee future results.

Which is riskier, ACES or FAAR?

ACES has been the more volatile fund at 35.4% annualized versus 9.2% for FAAR. Worst drawdown: ACES -79.0% vs FAAR -18.8%.

Should I hold both ACES and FAAR?

ACES and FAAR have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between ACES and FAAR?

ACES and FAAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 38 unique securities.

Which pays a higher dividend, ACES or FAAR?

ACES yields 1.22% while FAAR yields 9.19%, so FAAR currently pays the higher dividend yield.

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