FAAR vs GLOW

Quick Verdict

GLOW has a lower expense ratio. GLOW delivered stronger 1-year returns. GLOW offers more diversification with 15 holdings.

Lower Fees: GLOWHigher Returns: GLOWMore Diversified: GLOW

Side-by-Side Comparison

MetricFAARGLOWWinner
Expense Ratio0.97%0.72%
AUM$191M$63M
Dividend Yield9.19%1.28%
Holdings616
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 FamilyFirst Trust Portfolios (US)Victory Capital Management Inc.
CategoryCommodityEquity
InceptionMay 18, 2016Jun 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

0.0%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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