AVNM vs FAAR
Avantis All International Markets Equity ETF vs First Trust Alternative Absolute Return Strategy ETF
Quick Verdict
AVNM has a lower expense ratio. AVNM delivered stronger 1-year returns. AVNM offers more diversification with 9 holdings.
Side-by-Side Comparison
| Metric | AVNM | FAAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.31% | 0.98% | |
| AUM | $734M | $203M | |
| Dividend Yield | 2.36% | 9.89% | |
| Holdings | 9 | 5 | |
| YTD Return | +16.39% | +16.54% | |
| 1Y Return | +29.08% | +18.84% | |
| 3Y Return (annualized) | +23.36% | +9.37% | |
| 5Y Return (annualized) | - | +7.87% | |
| Volatility (annualized) | 12.6% | 9.2% | |
| Max Drawdown | -14.0% | -18.8% | |
| Fund Family | Avantis Investors | First Trust Portfolios (US) | |
| Category | Equity | Commodity | |
| Inception | Jun 27, 2023 | May 18, 2016 |
AVNM vs FAAR Performance
Avantis All International Markets Equity ETF (AVNM) is a ETF from Avantis Investors and First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US). Over the past year AVNM returned +29.08% while FAAR returned +18.84%. Year to date, AVNM is up 16.39% versus a gain of 16.54% for FAAR.
Over three years, AVNM compounded at +23.36% per year against +9.37% for FAAR. Across the full 3-year window we track, AVNM has the edge at +21.94% annualized vs +3.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AVNM has been the more volatile fund, with annualized monthly volatility of 12.6% 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 -14.0% for AVNM 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 -0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVNM charges 0.31% per year while FAAR charges 0.98%. On a $10,000 position that is $31 vs $98 annually, a gap of $67 per year that compounds over a long holding period. On income, AVNM currently yields 2.36% against 9.89% for FAAR.
Holdings Overlap
AVNM and FAAR share 0 holdings out of 9 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, AVNM or FAAR?
AVNM has an expense ratio of 0.31% while FAAR charges 0.98%. AVNM is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, AVNM or FAAR?
Over the past year AVNM returned +29.08% vs +18.84% for FAAR, so AVNM leads on 1-year performance. Over the longest common window we track (3 years), AVNM annualized +21.94% vs +3.54% for FAAR. Past performance does not guarantee future results.
Which is riskier, AVNM or FAAR?
AVNM has been the more volatile fund at 12.6% annualized versus 9.2% for FAAR. Worst drawdown: AVNM -14.0% vs FAAR -18.8%.
Should I hold both AVNM and FAAR?
AVNM and FAAR have a monthly-return correlation of -0.05, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVNM and FAAR?
AVNM and FAAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 9 unique securities.
Which pays a higher dividend, AVNM or FAAR?
AVNM yields 2.36% while FAAR yields 9.89%, so FAAR currently pays the higher dividend yield.
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