BBEM vs FAAR
BBEM vs FAAR
JPMorgan BetaBuilders Emerging Markets Equity ETF vs First Trust Alternative Absolute Return Strategy ETF
Quick Verdict
BBEM has a lower expense ratio. BBEM delivered stronger 1-year returns. BBEM offers more diversification with 889 holdings.
Side-by-Side Comparison
| Metric | BBEM | FAAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.97% | |
| AUM | $748M | $191M | |
| Dividend Yield | 2.52% | 9.19% | |
| Holdings | 1,132 | 6 | |
| YTD Return | +15.82% | +13.94% | |
| 1Y Return | +32.69% | +19.26% | |
| 3Y Return (annualized) | +19.42% | +8.78% | |
| 5Y Return (annualized) | - | +7.33% | |
| Volatility (annualized) | 15.1% | 9.2% | |
| Max Drawdown | -17.4% | -18.8% | |
| Fund Family | J.P. Morgan Asset Management | First Trust Portfolios (US) | |
| Category | Equity | Commodity | |
| Inception | May 10, 2023 | May 18, 2016 |
BBEM vs FAAR Performance
JPMorgan BetaBuilders Emerging Markets Equity ETF (BBEM) is a ETF from J.P. Morgan Asset Management and First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US). Over the past year BBEM returned +32.69% while FAAR returned +19.26%. Year to date, BBEM is up 15.82% versus a gain of 13.94% for FAAR.
Over three years, BBEM compounded at +19.42% per year against +8.78% for FAAR. Across the full 3-year window we track, BBEM has the edge at +19.55% annualized vs +3.32%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BBEM has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -17.4% for BBEM 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 0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BBEM charges 0.15% per year while FAAR charges 0.97%. On a $10,000 position that is $15 vs $97 annually, a gap of $82 per year that compounds over a long holding period. On income, BBEM currently yields 2.52% against 9.19% for FAAR.
Holdings Overlap
BBEM and FAAR share 0 holdings out of 890 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, BBEM or FAAR?
BBEM has an expense ratio of 0.15% while FAAR charges 0.97%. BBEM is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, BBEM or FAAR?
Over the past year BBEM returned +32.69% vs +19.26% for FAAR, so BBEM leads on 1-year performance. Over the longest common window we track (3 years), BBEM annualized +19.55% vs +3.32% for FAAR. Past performance does not guarantee future results.
Which is riskier, BBEM or FAAR?
BBEM has been the more volatile fund at 15.1% annualized versus 9.2% for FAAR. Worst drawdown: BBEM -17.4% vs FAAR -18.8%.
Should I hold both BBEM and FAAR?
BBEM and FAAR have a monthly-return correlation of 0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BBEM and FAAR?
BBEM and FAAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 890 unique securities.
Which pays a higher dividend, BBEM or FAAR?
BBEM yields 2.52% while FAAR yields 9.19%, so FAAR currently pays the higher dividend yield.
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