ETW vs FAAR
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund vs First Trust Alternative Absolute Return Strategy ETF
Quick Verdict
FAAR has a lower expense ratio. ETW delivered stronger 1-year returns. ETW offers more diversification with 259 holdings.
Side-by-Side Comparison
| Metric | ETW | FAAR | Winner |
|---|---|---|---|
| Expense Ratio | 1.10% | 0.97% | |
| AUM | $936M | $191M | |
| Dividend Yield | 7.41% | 9.19% | |
| Holdings | 291 | 6 | |
| YTD Return | +10.92% | +13.94% | |
| 1Y Return | +20.02% | +19.26% | |
| 3Y Return (annualized) | +15.89% | +8.78% | |
| 5Y Return (annualized) | +6.21% | +7.33% | |
| Volatility (annualized) | 16.9% | 9.2% | |
| Max Drawdown | -72.8% | -18.8% | |
| Fund Family | Eaton Vance | First Trust Portfolios (US) | |
| Category | Alternative | Commodity | |
| Inception | Sep 30, 2005 | May 18, 2016 |
ETW vs FAAR Performance
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (ETW) is a ETF from Eaton Vance and First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US). Over the past year ETW returned +20.02% while FAAR returned +19.26%. Year to date, ETW is up 10.92% versus a gain of 13.94% for FAAR.
Over three years, ETW compounded at +15.89% per year against +8.78% for FAAR; over five years the annualized figures are +6.21% and +7.33% respectively. Across the full 10-year window we track, FAAR has the edge at +3.32% annualized vs -1.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ETW has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -72.8% for ETW 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ETW charges 1.10% per year while FAAR charges 0.97%. On a $10,000 position that is $110 vs $97 annually, a gap of $13 per year that compounds over a long holding period. On income, ETW currently yields 7.41% against 9.19% for FAAR.
Holdings Overlap
ETW and FAAR share 0 holdings out of 260 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, ETW or FAAR?
ETW has an expense ratio of 1.10% while FAAR charges 0.97%. FAAR is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, ETW or FAAR?
Over the past year ETW returned +20.02% vs +19.26% for FAAR, so ETW leads on 1-year performance. Over the longest common window we track (10 years), ETW annualized -1.13% vs +3.32% for FAAR. Past performance does not guarantee future results.
Which is riskier, ETW or FAAR?
ETW has been the more volatile fund at 16.9% annualized versus 9.2% for FAAR. Worst drawdown: ETW -72.8% vs FAAR -18.8%.
Should I hold both ETW and FAAR?
ETW and FAAR have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ETW and FAAR?
ETW and FAAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 260 unique securities.
Which pays a higher dividend, ETW or FAAR?
ETW yields 7.41% while FAAR yields 9.19%, so FAAR currently pays the higher dividend yield.
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