FAAR vs FFLV
FAAR vs FFLV
First Trust Alternative Absolute Return Strategy ETF vs Fidelity Fundamental Large Cap Value ETF
Quick Verdict
FFLV has a lower expense ratio. FFLV delivered stronger 1-year returns. FFLV offers more diversification with 105 holdings.
Side-by-Side Comparison
| Metric | FAAR | FFLV | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.38% | |
| AUM | $191M | $16M | |
| Dividend Yield | 9.19% | 1.41% | |
| Holdings | 6 | 119 | |
| YTD Return | +13.94% | +17.97% | |
| 1Y Return | +19.26% | +32.15% | |
| 3Y Return (annualized) | +8.78% | - | |
| 5Y Return (annualized) | +7.33% | - | |
| Volatility (annualized) | 9.2% | 12.3% | |
| Max Drawdown | -18.8% | -16.7% | |
| Fund Family | First Trust Portfolios (US) | Fidelity Investments (US) | |
| Category | Commodity | Equity | |
| Inception | May 18, 2016 | Feb 9, 2024 |
FAAR vs FFLV Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US) and Fidelity Fundamental Large Cap Value ETF (FFLV) is a ETF from Fidelity Investments (US). Over the past year FAAR returned +19.26% while FFLV returned +32.15%. Year to date, FAAR is up 13.94% versus a gain of 17.97% for FFLV.
Risk: Volatility and Drawdowns
FFLV has been the more volatile fund, with annualized monthly volatility of 12.3% 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 -18.8% for FAAR and -16.7% for FFLV. 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 -0.03. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAAR charges 0.97% per year while FFLV charges 0.38%. On a $10,000 position that is $97 vs $38 annually, a gap of $59 per year that compounds over a long holding period. On income, FAAR currently yields 9.19% against 1.41% for FFLV.
Holdings Overlap
FAAR and FFLV share 0 holdings out of 106 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, FAAR or FFLV?
FAAR has an expense ratio of 0.97% while FFLV charges 0.38%. FFLV is the cheaper option. On a $10,000 investment, that is $59 per year of difference.
Which performed better, FAAR or FFLV?
Over the past year FAAR returned +19.26% vs +32.15% for FFLV, so FFLV leads on 1-year performance. Over the longest common window we track (2 years), FAAR annualized +3.32% vs +17.62% for FFLV. Past performance does not guarantee future results.
Which is riskier, FAAR or FFLV?
FFLV has been the more volatile fund at 12.3% annualized versus 9.2% for FAAR. Worst drawdown: FAAR -18.8% vs FFLV -16.7%.
Should I hold both FAAR and FFLV?
FAAR and FFLV have a monthly-return correlation of -0.03, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAAR and FFLV?
FAAR and FFLV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, FAAR or FFLV?
FAAR yields 9.19% while FFLV yields 1.41%, so FAAR currently pays the higher dividend yield.
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