FAAR vs GLOW
FAAR vs GLOW
First Trust Alternative Absolute Return Strategy ETF vs VictoryShares WestEnd Global Equity ETF
Quick Verdict
GLOW has a lower expense ratio. GLOW delivered stronger 1-year returns. GLOW offers more diversification with 15 holdings.
Side-by-Side Comparison
| Metric | FAAR | GLOW | Winner |
|---|---|---|---|
| Expense Ratio | 0.97% | 0.72% | |
| AUM | $191M | $63M | |
| Dividend Yield | 9.19% | 1.28% | |
| Holdings | 6 | 16 | |
| YTD Return | +13.94% | +14.31% | |
| 1Y Return | +19.26% | +25.58% | |
| 3Y Return (annualized) | +8.78% | - | |
| 5Y Return (annualized) | +7.33% | - | |
| Volatility (annualized) | 9.2% | 10.7% | |
| Max Drawdown | -18.8% | -15.6% | |
| Fund Family | First Trust Portfolios (US) | Victory Capital Management Inc. | |
| Category | Commodity | Equity | |
| Inception | May 18, 2016 | Jun 21, 2024 |
FAAR vs GLOW Performance
First Trust Alternative Absolute Return Strategy ETF (FAAR) is a ETF from First Trust Portfolios (US) and VictoryShares WestEnd Global Equity ETF (GLOW) is a ETF from Victory Capital Management Inc.. Over the past year FAAR returned +19.26% while GLOW returned +25.58%. Year to date, FAAR is up 13.94% versus a gain of 14.31% for GLOW.
Risk: Volatility and Drawdowns
GLOW has been the more volatile fund, with annualized monthly volatility of 10.7% 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 -15.6% for GLOW. 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 -0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FAAR charges 0.97% per year while GLOW charges 0.72%. On a $10,000 position that is $97 vs $72 annually, a gap of $25 per year that compounds over a long holding period. On income, FAAR currently yields 9.19% against 1.28% for GLOW.
Holdings Overlap
FAAR and GLOW share 0 holdings out of 16 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 GLOW?
FAAR has an expense ratio of 0.97% while GLOW charges 0.72%. GLOW is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, FAAR or GLOW?
Over the past year FAAR returned +19.26% vs +25.58% for GLOW, so GLOW leads on 1-year performance. Over the longest common window we track (2 years), FAAR annualized +3.32% vs +19.77% for GLOW. Past performance does not guarantee future results.
Which is riskier, FAAR or GLOW?
GLOW has been the more volatile fund at 10.7% annualized versus 9.2% for FAAR. Worst drawdown: FAAR -18.8% vs GLOW -15.6%.
Should I hold both FAAR and GLOW?
FAAR and GLOW have a monthly-return correlation of -0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FAAR and GLOW?
FAAR and GLOW share 0 common holdings with a 0.0% weight overlap. Combined, they hold 16 unique securities.
Which pays a higher dividend, FAAR or GLOW?
FAAR yields 9.19% while GLOW yields 1.28%, so FAAR currently pays the higher dividend yield.
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