AOD vs FAAR
AOD vs FAAR
Abrdn Total Dynamic Dividend Fund vs First Trust Alternative Absolute Return Strategy ETF
Quick Verdict
FAAR has a lower expense ratio. AOD delivered stronger 1-year returns. AOD offers more diversification with 85 holdings.
Side-by-Side Comparison
| Metric | AOD | FAAR | Winner |
|---|---|---|---|
| Expense Ratio | 1.16% | 0.97% | |
| AUM | $1.0B | $191M | |
| Dividend Yield | 11.72% | 9.19% | |
| Holdings | 86 | 6 | |
| YTD Return | +18.03% | +13.94% | |
| 1Y Return | +34.72% | +19.26% | |
| 3Y Return (annualized) | +22.88% | +8.78% | |
| 5Y Return (annualized) | +11.28% | +7.33% | |
| Volatility (annualized) | 21.9% | 9.2% | |
| Max Drawdown | -88.1% | -18.8% | |
| Fund Family | Aberdeen | First Trust Portfolios (US) | |
| Category | Equity | Commodity | |
| Inception | Jan 26, 2007 | May 18, 2016 |
AOD vs FAAR Performance
Abrdn Total Dynamic Dividend Fund (AOD) is a ETF from Aberdeen and First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US). Over the past year AOD returned +34.72% while FAAR returned +19.26%. Year to date, AOD is up 18.03% versus a gain of 13.94% for FAAR.
Over three years, AOD compounded at +22.88% per year against +8.78% for FAAR; over five years the annualized figures are +11.28% and +7.33% respectively. Across the full 10-year window we track, FAAR has the edge at +3.32% annualized vs -4.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AOD has been the more volatile fund, with annualized monthly volatility of 21.9% 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 -88.1% for AOD 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 0.09. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AOD charges 1.16% per year while FAAR charges 0.97%. On a $10,000 position that is $116 vs $97 annually, a gap of $19 per year that compounds over a long holding period. On income, AOD currently yields 11.72% against 9.19% for FAAR.
Holdings Overlap
AOD and FAAR share 0 holdings out of 86 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, AOD or FAAR?
AOD has an expense ratio of 1.16% while FAAR charges 0.97%. FAAR is the cheaper option. On a $10,000 investment, that is $19 per year of difference.
Which performed better, AOD or FAAR?
Over the past year AOD returned +34.72% vs +19.26% for FAAR, so AOD leads on 1-year performance. Over the longest common window we track (10 years), AOD annualized -4.05% vs +3.32% for FAAR. Past performance does not guarantee future results.
Which is riskier, AOD or FAAR?
AOD has been the more volatile fund at 21.9% annualized versus 9.2% for FAAR. Worst drawdown: AOD -88.1% vs FAAR -18.8%.
Should I hold both AOD and FAAR?
AOD and FAAR have a monthly-return correlation of 0.09, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AOD and FAAR?
AOD and FAAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 86 unique securities.
Which pays a higher dividend, AOD or FAAR?
AOD yields 11.72% while FAAR yields 9.19%, so AOD currently pays the higher dividend yield.
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